Gail’s boss breaks silence in gentrification row

The co-founder of Gail’s bakery has broken his silence amid a gentrification row that has seen the upmarket bakery face revolts as they plan to expand to towns and suburbs across the UK.

Chief executive Tom Molnar has slammed claims the chain is ruining high streets, as they spread at a rate of a new shop every fortnight.

But as they take up residence in communities all around the country, locals have fought back – complaining that they will put independent eateries out of business.

And owners of family-run cafés warned existing local businesses were ‘struggling as it is’ and could lose custom or even be forced to close for good if Gail’s opens.  

Mr Molnar has instead insisted that he only ever wanted to give the customers choice.

‘We build small sites so they are a part of a diverse high street, so whenever I build a Gail’s I think what it would be like if I was a resident here,’ he told The Times.

‘I’d encourage people to look at what we’re trying to do, rather than taglines. There’s good independents and bad, and good chains and bad chains.’ 

The bakery chain has attracted a backlash from residents in seaside town Worthing over plans to open an outlet on Warwick Street – set within a conservation area.

The Worthing Society, which aims to ‘preserve’ and ‘safeguard’ the town’s heritage, has expressed concerns the bakery’s aesthetic might not harmonise with the historic street on which it is set to open. 

It comes after hundreds of residents in Walthamstow, north-east London, signed a petition to stop the company opening on their High Street amid fears it could run independent cafes out of business. 

Tushar Patel, who owns Café Traditionale on Chapel Road, told The Telegraph: ‘Allowing more cafes to open will have a knock-on effect on existing businesses.

‘Existing businesses are struggling as it is. Somebody will have to close their doors very soon here. It is frustrating. The council should look after the existing businesses by not allowing new cafes to open.’

A Gail’s sign on the front of the vacant shop in Worthing says: ‘Hello Worthing. We’ll be baking here soon’.

Gail’s Bakery started as a single store in Hampstead, north London, and slowly began to spread across the capital before cherry picking new towns and cities to set up in.

But its rise to prominence has not been welcomed with open arms, as some look to fight the gentrification of their towns.

The chain now has more than 130 shops across Britain already and is seen by many as the successor to Waitrose, with plans now in place for new sites to be opened across Britain.

Earlier this month, Gail’s hit the headlines when residents of gentrified Walthamstow Village launched a fight to stop a branch opening on their high street.

The petitioners said they wanted to protect ‘the unique identity of our community’ by ‘safeguarding the soul of a beloved neighbourhood’.

However, some business owners claimed that local resistance was down to company chairman Luke Johnson, who is said to be pro-Brexit, anti-lockdown and has called climate activists ‘alarmists’.

Some residents said they felt Mr Johnson did not align with the politics of the area, which backed Remain in 2016 and has had a Labour MP for more than 30 years. 

During the General Election campaign earlier this year, the Liberal Democrats targeted constituencies where there are Gail’s outlets – believing there were Conservative voters who could be prepared to swing – in a scheme launched by Sir Ed Davey and dubbed ‘Operation Cinnamon Bun’.

Baz, who owns a business called Bites in Worthing, told the Telegraph he estimates he would lose around two tables a day if Gail’s opened its doors.

He said there were ‘already enough cafes’ in the town with businesses struggling to make money and to survive – and called on the council to manage the situation ‘before it gets too late’.

The Worthing Society has also expressed its concern for an ‘illuminated hanging sign’ which they said would not be consistent with the conservation are.

They suggested an illuminated sign could be ‘overly dominant’ and ‘set a precedent’.

A Gail’s spokesperson told the broadsheet: ‘We understand the concern, but our view is that a healthy high street is one with a diversity of quality offers, each delivering their best.

‘High streets evolve over time, and we open our small bakeries often in closed banks or stranded restaurants. All of our bakeries exist in areas where the choices are wide and growing – we should be celebrating the improvement in our food landscapes.

‘Bringing our bakery to Worthing, with such a dynamic and thriving food scene, is something we’ve wanted to do for a while.

‘We’re looking forward to having a small footprint in a place that we love and admire, and are excited to fire up our ovens for the Worthing community.’

MailOnline recently went to speak to residents in Petersfield (Hampshire), Greenwich (south London) and Witney (Oxfordshire) to find out their views on the coffee chain and its impact on the local economy. 

Petersfield 

People in Petersfield complained the affluent area is becoming ‘Londonised’ after Gail’s opened a store there.

Shoppers on the High Street in the leafy Hampshire market town said they feel ‘sorry’ for local bakeries in the town after the arrival of upmarket chain Gail’s.

However, others are delighted to have a Gail’s on their doorstep as they see it as a sign that the area is ‘well off’.

Houses in Petersfield, which sits in the South Downs countryside, cost an average of half a million pounds.

The area has been called home to celebrities including Noel Gallagher and Take That’s Mark Owen, while it is also noted for the £30,000 a year Bedales School, where Daniel Day-Lewis and Lily Allen studied.

Today, it enjoys a constant flow of customers visiting the cafe – although some people grumble at its prices, including £5 orange juice.

Sarah Duveen, from London, regularly visits Petersfield to escape the capital and see her in-laws – but doesn’t feel like she has escaped.

The self-employed 30-year-old said it has become a running joke that Gail’s is synonymous with ‘posh’ areas.

‘It’s always the posh bits of London’, she said. ‘I think people take the p sometimes – if there’s a Gail’s in the area, that’s a good one.’

Ms Duveen added: ‘Petersfield is becoming more Londonised by having one.

‘I don’t think it’s necessarily a bad thing, I think it makes house prices go up. I was pretty surprised when I found out it was here. It almost feels like it sticks out. I see this place as a local countryside safe place away from London – I can’t escape.

‘It is really quite expensive – I would pay for it, but I would probably feel a bit sick that I spent £10 on coffee and cake.’

Communications worker Sammi Healey, from Petersfield, sipped on a Gail’s coffee and told how she is a fan of the chain but sympathises with local establishments.

She said: ‘I love it… There’s part of me that always feels sorry for the Hoxton’s [a local bakery].’

When asked whether a Gail’s was a sign of gentrification, the 40-year-old said: ‘I haven’t really though of it like that.

‘The town needs a bit more of this – it’s definitely feeling run down of late.’

Ms Healey’s usual order is coffee and a ham and cheese croissant when she visits Gail’s.

Her daughter has inherited her love for the bakery. She said: ‘My daughter starts school in September – she said can I get my hair cut, my nails painted and can we go to Gail’s?’ 

Andrew Madgwick, a market researcher, is glad that Gail’s has a branch in Petersfield since it means an old building on the High Street isn’t being left empty.

‘They are always in nice buildings and they picked a very nice one in Petersfield,’ Mr Madgwick said.

‘It seems very appropriate. The worst thing for high streets I think is premises being left empty, especially ex-banks. They don’t always fit every type of business – a cafe goes very nicely.’

On whether Gail’s improves the High Street, the 63-year-old said: ‘I don’t think it actually improves Petersfield in that way.

‘It’s already pretty gentrified – [the buildings] have nice shops in them and nice cafes already. It’s just a chain now really.’

Project manager Katie Kempster thinks that Gail’s does improve the High Street, but it can be unaffordable for families.

‘I don’t go there, it’s not a child friendly environment,’ she said.

On the rare occasion she does go, she said the prices can be shocking: ‘For lots of families it’s not particularly affordable. Orange juice on its own was £5 – I don’t care how freshly squeezed it is, it does not have to be £5.

‘Some people can afford it, some can’t – you can’t please everyone.’

The 38-year-old admired the fact that Gail’s donates food to the local community rather than letting it go to waste.

‘It’s a lovely establishment, a good use of the building,’ she said. ‘It’s not out of place here.’

Greenwich 

Residents in Greenwich said they ‘understood’ why people were resistant to a Gail’s Bakery opening in their area.

Despite plans to open another to shops in London and having more than 130 openings, managers at Gail’s do not consider themselves a chain.

But Joslin, 23, said she chose to avoid Gail’s shops as she preferred the ‘personal experience’ with independent coffee shops.

She said: ‘I think it’s ok. I personally don’t go to them that often. It’s not hugely convenient. Personally I would choose independent coffee shops over Gail’s, Starbucks and places like that.

‘For me those [independent places] are more convenient. I like to support a more personal experience with independent places, I know the people that work there and stuff like that, rather than employees from larger corporations.’

The arrival of a Gail’s in a town is a boost for property prices and a sure indicator that the area is on the up and up.

But for some locals, including those in Greenwich, the introduction of the brand threatens their individuality.

When asked if she felt a Gail’s made Greenwich more gentrified, Joslin said: ‘Yeh I would definitely say so. It’s always the first thing to pop up.

‘I can absolutely understand why people would be angry. It takes away from more small independent coffee shops that have been selling stuff that Gail’s sells and it takes away from that business.’

Maisy Cole, 24, also preferred to support local coffee shops and businesses, claiming these places were ‘a lot more friendly’.

She said: ‘I completely understand [why people don’t want them in their town]. I think it is a shame. Especially when you have got some beautiful coffee shops where they spend a lot of time sourcing the coffee and getting local produce.

‘Big corporations coming in attracting new customers. It pushes the local coffee shops out and I can see why local residents are not happy about that.

‘I would definitely support local. I think the coffee is always a lot better when you go to a local coffee shop and the service you get is a lot more personable. It’s a lot more friendly and you feel a bit better about yourself going into a local shop and supporting local business.’

Whitney 

Locals in the small Oxfordshire town of Whitney felt the High Street needed a Gail’s Bakery, even if the prices were ‘ridiculous’.

Gail’s first foray outside of London was in Oxford in 2016 when the bakery opened a store in nearby Summertown.

It followed this up with a bakery in Jericho as well as opening a store in Witney.

Many residents were pleased to see another coffee shop open in the area, claiming they couldn’t get into any other outlets most of the time because they were too busy.

Linda Kennedy, 71, retired teacher, said: ‘I had never heard of it until yesterday and it’s just another cafe. We have just been in it and it seems like any other cafe. it wouldn’t do any harm if it was a sign of gentrification.

‘It’s absolutely not [a sign of gentrification]. There are lots of cafes anyway and people are in their enjoying having a coffee. I bought a flat white and cake and it was very pleasant. The other cafes were full which is why we ended up in there.’

Vanni Cook, a teacher of language related studies was visiting the town from Devon and felt having a Gail’s Bakery in the town was a ‘really positive thing’.

The 75-year-old said: ‘I’m completely indifferent. It fills a gap in the High Street and I think that is a really positive thing.

‘I think it is a cake and coffee. Cakes are tasty and that’s all their is. It’s just another cafe.

‘I think all cafes are really important because they are social centres. So therefore it is good. I went there today and had a coffee and a cake. The coffee was really good and the cake was tasty. I couldn’t get into any of the other cafes because they were all full. So I think that says something about Witney.’

Whilst many were pleased with the service Gail’s provided, retired farm worker Peter Kew claimed he wouldn’t visit the shop again because it was ‘too expensive’ for working class people.

The 76-year-old said: ‘It’s a nice place. Clean. Respectable. But it’s very pricey.

‘I’ve been in there a couple of times. My sister is a 90-year-old lady from Charlton and I’ve took her in and we got four cakes and it was nearly £14. Ridiculous for working class people and Witney is working class people.

‘I wouldn’t go into Gails again because it is too expensive. Unless I really need a cup of coffee. But I don’t think there is any need to pay that sort of money. It’s not just them though. I think a lot of shops are [too expensive].’