It is perhaps already one of the most controversial coffee shops in the UK, with its artisanal sourdough and new branches prompting an equal reaction of delight – and disgust.
But Gail’s Bakery looks to spark a fresh row away from the debate over its over-expansion, after admitting using a computer algorithm to help them select spots for new branches.
Co-founder, Tom Molnar, explained that the algorithm is a less-advanced form of AI that helps them decide what makes a ‘good place’ to open a store.
Speaking on the Hungry Podcast, Mr Molnar said: ‘So those algorithms, we built it, I mean, it’s probably been eight years we’ve been building. It’s like, why would somebody want a bakery in every neighbourhood?
‘And basically we ended up with an algorithm that can tell you every postcode in the country, what we might be able to do there, based on what we’ve done.
‘We want to go to a place that is competitive. So you look at the competitive landscape, you look at the footfall, you look at access to transport, you look at the spend available to these people, so demographics.
‘And we’ve put them into a model that kind of learns on its own. So every new site I have, I put in there.
‘AI is more advanced, but it’s the same kind of thinking where you can just keep on feeding a model and the model can tell you, hey you might look at this area, I think that this might work.
‘And then at least gets us that beginning and we can say, let’s use the science, now we need to use our brain, that’s 50% of the answer.’
And while Gail’s seem to be profiting off mass expansion, the upmarket chain has experienced rampant growth over the past three years and is now valued at an estimated £500million – more than double the £200million in 2021.
The store has led to major divides between residents in towns and villages across the country.
In August, hundreds of residents in Walthamstow signed a petition to try and stop the cafe from opening on their High Street over fears it could run independent stores out of business.
And while the bakery did open, the owner of Village Bakery, an independent shop on Orford Road in Walthamstow told MyLondon she would have to sell the store after the ‘worst December in 19 years’, just three months after the Gail’s opened.
Gail’s believes it has benefited from the high street crisis of empty stores, taking on sites with favourable deals from landlords desperate for rent income after a closure.
A spokesperson for Gail’s told : ‘We understand the concern around chains, 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 bakeries often in closed banks or restaurants, improving the landscape of the high street.
‘All of our bakeries exist in areas where the choices are wide and growing – we believe the improvement in our food landscapes is something to celebrate.’
And the outrage at the opening of Gail’s bakeries has continued to grow, people in Petersfield complained the affluent area is becoming ‘Londonised’ after Gail’s opened a store there.
While residents in Greenwich said the opening of a Gail’s made the area feel more gentrified.
Mr Molnar added: ‘Now, it’s just math right? So you still have to get your head into that neighbourhood, ask some questions, feel it, what side of the street, is it a building you love? Is it this kind of thing? But yeah, I get half of it to be science.
‘And that was a creative process. It’s like, why would somebody be there? Well, maybe it’s a little bit about schools, right? How many schools are around there? How many churches are around there? How far are you from the tube?
‘But what I find is that Gail’s can exist because there’s lots of people around, near a tube, you know wealthy right? And then one can do really well because it’s you know, it’s basically in a community that don;t have much, and you know they have to drive somewhere else and there’s not much footfall.’
The bakery, which started out in 2005 as an independent coffee shop in Hampstead has developed into a coffee empire with over 130 shops.
And Gail’s plans to open up to 40 more stores next year and hire another 1,000 staff as the bakery firm presses on with expansion plans despite bitter ‘gentrification’ rows.
Mr Molnar has revealed he is targeting £300million in sales next year amid plans to open another 30 to 40 bakeries in 2025.
Mr Molnar said: ‘Architecture and property drove a lot of my decisions early on, like if I loved the site, I’d say it doesn’t matter about the neighbourhood really.
‘As we get bigger we think okay, we know it’s a neighbourhood, and we find a nice building there. And we always like the challenge.
‘It’s kind of half math and half art. Because, I mean, you can do some, we’ve got algorithms that I kind of, I’ve built with some guys, which is a creative process.
‘So I mean I want to put science into it, right? Because I want to free my mind in the space to really think about the place.’