The UK – based Cornish Bakery has taken a significant step by appointing advisors to oversee the sale of its business. The consumer – focused M&A advisory firm, Tamweel Capital, will be guiding the process. This move is expected to attract the attention of private equity firms and strategic trade suitors. At present, it remains unclear whether Cornish Bakery is aiming for a full or partial stake sale. World Coffee Portal has reached out to both Cornish Bakery and Tamweel for their comments.
Established in 1994 by Steve Grocutt, Cornish Bakery now operates 66 stores across the UK. The bakery – café chain offers a premium food menu featuring pasties, pastries, and brunch items, complemented by specialty coffee sourced from London – based Union Hand Roasted Coffee.
Previously, the chain received funding from Virgin Money to open new outlets. In May 2024, it appointed Matt Finch as its first Managing Director, with the goal of doubling or tripling in size over the next few years. Grocutt remarked, “From our first bakery in Cornwall to our nationwide presence today, we’ve stayed true to our vision of bringing high – quality, handcrafted products to every corner of the UK. The brand is in a fantastic position for its next chapter, and I’m incredibly proud of what we’ve built. With the right partner, Cornish Bakery has the potential to go much further, and I’m excited for what’s next.”
Cornish Bakery has been performing well financially. It reported a 9.7% like – for – like sales growth in the last six months of 2024, and its total year – on – year sales increased by 26%. The premium bakery – café chain anticipates that its full – year revenue for the 12 – month period ending 31 May 2025 will reach £37m ($48.1m). If achieved, this would represent a 26% year – on – year growth.
The UK coffee shop M&A activity has been on the rise, especially in the second half of 2024. Hospitality operators and investors are eager to gain a larger share of the booming £6.1bn UK branded coffee shop market. In the past year, several coffee – related businesses changed hands. Premium doughnut and coffee chain Crosstown, specialty coffee roaster and café group The Gentlemen Baristas, and hospital coffee chain Peabody Coffee all found new owners. In October 2024, US coffee giant Starbucks acquired its largest UK franchisee, 23.5 Degrees. Gerry Ford – run The Nero Group expanded its UK coffee shop portfolio by acquiring Nottingham – based coffee roaster and café chain 200 Degrees Coffee and travel hub coffee chain FCB Coffee. Additionally, in November 2024, Bread Holdings reportedly appointed New York – based investment bank Goldman Sachs to auction a sale of Gail’s.
Tamweel Capital, based in London, has a track record in the hospitality and related sectors. In January 2025, it advised on a £5.5m ($7.1m) private equity raise for sustainability – focused restaurant chain Farmer J. It has also facilitated fundraises for hospitality group White Rabbit Projects, experiential leisure brand Swingers, and fitness group Gymbox.
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