Cornish Bakery is expanding beyond traditional pastries with its new RISE concept, a dining-focused format that includes small plates and alcohol. The largest outlet in the company’s portfolio opened in Portsmouth Harbour, marking the brand’s first foray into evening service and seated dining. This move follows the April launch of a similar RISE site in Betws-y-Coed, Wales, which began trading before the Portsmouth unit due to construction delays.
From Tourist Stops to High Streets
Founder Steve Grocutt says his original goal was simple: fund winter travel. In 1994, he opened a pasty shop in Mevagissey with his father’s butcher’s wife after moving to London. The first summer was a failure, but the next year, the business took off. By the second year, Grocutt expanded to four, five, and six sites across Cornwall’s tourist hotspots, including Newquay and St Ives.
As the travel bug faded, he focused on growing the business. He introduced coffee to the model early on, and today it is the best-selling item across the group. Pasties now account for less than a third of overall sales. Grocutt built out the food proposition to fill dead trading hours between 11 a.m. and 3 p.m., introducing other baked goods to the mix.
The company doubled its number of bakeries over the past five years and grew the team to over 1,000 staff members. It also quadrupled its profit, reporting an EBITDA of £4.5 million on sales of £36.4 million. NPS scores sit at an impressive 75%. Grocutt believes the open-plan bakeries, where customers can see the baking in action, create an active and uplifting vibe that draws people in.
Grocutt abandoned the “identikit” approach to store design, moving toward bespoke, flexible environments that optimize space and community interaction. These locations have become venues for talks, exhibitions, and classes. The founder argues that the supermarket model killed many local bakeries, but he sees an opportunity for modern, independent concepts that offer more than just bread.
Anti-Homogeneity and New Concepts
Grocutt views predictability as his greatest threat. He insists the company is “resolutely not a chain” but a group of high-end bakeries. He wants to redefine what a bakery can be, rejecting the “cookie-cutter” approach. This philosophy drives the creation of the RISE concept, which adapts to the specific needs of each location.
At Gunwharf Quays, the format includes an orangery, an outdoor terrace, a first-floor balcony, and a dedicated space for baking classes. The menu now features brunch and all-day small plates, along with Cornish beers and wines. Unlike the traditional 11 a.m. to 3 p.m. service, this unit stays open until 8 p.m.
The Betws-y-Coed location proved the concept could work. Grocutt is confident he can expand RISE, even incorporating elements into smaller units. A new store in Shrewsbury will sit between a RISE and a regular Cornish Bakery outlet, adding brunch items and potentially a bar area.
Grocutt considered selling the business last year but was held back by market uncertainty and strings attached to offers. A private equity acquisition/investment would know doubt have sat uneasily because Grocutt says their strategy is invariably “fast growth and sell it on”. This runs the risk of sub-par performing outlets being opened, which Cornish Bakery has been very careful to avoid over the years: “The whole estate is profitable. If you have an unprofitable tail it can bring you down. I’m laissez faire on expansion. If it’s a nice unit then we’ll have it. It’s not a case of having 100 or 200 units, we need our people to be happy and the stores profitable.”
Every year has been a record trading year for the company, with 30% year-on-year growth and life-for-like sales growth of 7.9%. Grocutt suggests that Pep Guardiola would struggle to maintain the same level of success with 80% team turnover, a common issue in hospitality. He questions whether a business of this scale can be built differently, prioritizing people and culture over pure profit.
Challenges of Scale and Culture
Grocutt admits legacy is a frequent topic of discussion. He believes a different approach to business is possible, stating that putting people first leads to happy customers and results. He wonders if a collection of independent bakeries can retain culture while growing larger.
The founder insists the entire estate is profitable and avoids opening units that do not meet quality standards. He is laissez-faire on expansion, preferring to ensure stores are profitable rather than chasing a specific number of locations. This philosophy prioritizes the well-being of the team and the authenticity of the brand.
Life-for-like sales growth reached 7.9% in the most recent 12 months, driven by factors beyond price increases. Grocutt questions whether companies often grow merely for the sake of money. He remains committed to proving that a better way to do business exists in the hospitality sector.
Grocutt is not afraid to walk away from deals that do not align with his values. He believes the current success of Cornish Bakery validates his approach to business. The Portsmouth Harbour site serves as the latest example of how the brand adapts to different locations while maintaining its core identity.
