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This month we’re looking at Patisserie Valerie, who, with 21 new stores opening last year, has been making headlines with record results.
The high-end bakery, known for its luxury, continental style cakes and patisserie, opened its first outlet in London in 1926. Today, the chain has more than 115 outlets across the UK and Ireland with an ambitious regional roll-out programme. Its latest store opened last week in Dundee as part of its plan to grow its presence north of the border.
Owner, Patisserie Holdings, saw sales hit £100million for the first time this financial year, its 10th consecutive year of revenue and profit growth. How has this F&B brand achieved growth at this rate? The introduction of afternoon tea two years ago has certainly helped the group notch up sales, accounting for £2.3million this year, up from £1.2million in 2015. Over 33,000 afternoon teas were sold over the course of the year.
Patisserie Valerie chairman Luke Johnson, the Pizza Express founder and serial entrepreneur, puts the brand’s success down to the offer being an “affordable treat” while addressing “large and growing markets”. Additionally, the brand is looking forward to a flood of US tourists coming to Britain next summer, as they make the most of a plunging pound.
However, looking ahead, Johnson says uncertain macro-economic times will put pressure on the company’s supply chain. Like other F&B brands, Patisserie Valerie anticipates higher ingredients costs for its wide selection of cakes and pastries; it’s reported the chain had pre-purchased many of its ingredients, including coffee to January 2018, ahead of the Brexit vote. Additionally, the chain cites the National Living Wage as the biggest cost pressure. It has mitigated this through a new staff rostering method. Staff hours have been rescheduled and the number of part-time workers reduced in favour of more full-time employees.
With record figures - revenue was up 13.3% to £104.1 million in the year ending 30 September, with pre-tax profits jumping 18% to £17.2 million- the future still looks sweet for Patisserie Valerie.
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