Cornish Bakery has expanded beyond its traditional pasty shops with the opening of its largest outlet in Portsmouth Harbour, which introduces a dining concept that includes small plates and alcohol for the first time.
The new Gunwharf Quays site is the second of the company’s “RISE” concepts, following the launch of a larger unit in Betws-y-Coed, Wales, earlier this year. While the group is known for its Cornish pasties, the Portsmouth location represents a significant shift in the business model. The 3,500 square-foot venue spans two floors and offers 200 seats across an orangery, outdoor terrace, and a first-floor balcony. It serves brunch and all-day small plates, alongside signature pastries, cakes, and coffee, until 8 pm.
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Steve Grocutt, the founder, sat down with The Retail Bulletin to discuss the expansion and the company’s philosophy. He noted that the Gunwharf Quays site was designed with the specific needs of the shopping centre in mind, allowing customers to visit from breakfast through to the evening. The menu now includes Cornish beers from Harbour Brewery and wines from Camel Valley Vineyard, alongside the usual baked goods. The Betws-y-Coed location opened ahead of the Portsmouth unit, giving Grocutt confidence that the RISE concept can be replicated and adapted.
The business has grown rapidly over the past five years, doubling its number of locations and growing its team to over 1,000 people. The group reported an EBITDA of £4.5 million on sales of £36.4 million, with a Net Promoter Score of 75%. Despite this success, Grocutt maintains that the company is not a chain. He argues that the greatest threat to the business is predictability and that the group is committed to avoiding homogeneity. The company is now designing bespoke environments that serve as community hubs for talks, exhibitions, and events, rather than simply cookie-cutter outlets.
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Expansion has always been a central part of Grocutt’s strategy, but he insists on maintaining profitability at every single store. He rejects the idea of aggressive growth at the expense of culture or quality. A private equity acquisition was considered last year, but Grocutt ruled it out because their typical strategy of “fast growth and sell it on” often leads to sub-par performing outlets. He believes that a business of scale can still be authentic and that the company’s focus on a happy team leading to happy customers is the key to its success.
This focus on culture and the customer experience is evident in the company’s growth figures. The business has achieved 30% year-on-year growth and 7.9% life-for-like sales growth, showing that the strategy is working without relying solely on price increases. The upcoming store in Shrewsbury will sit between a RISE and a regular Cornish Bakery outlet in size, offering a blend of the two concepts. As the company continues to evolve, Grocutt remains focused on redefining what a bakery can be, even as he considers the legacy he leaves behind.
