Cardiff-based start-up Donald’s Pies is set to increase its production capacity tenfold following the opening of a new production kitchen on Penarth Road.
Founded just 18 months ago by 31-year-old Gareth Owens, the company – which specialises in grab-and-go coffee and handheld pies – has generated almost £250,000 in revenue in its first year of trading.
With demand quickly outstripping production capacity, the company has invested in a new in-house kitchen facility, supported by a £10,000 Start Up Loan from the British Business Bank. Following a 12-week build, the new facility will enable Donald’s to scale from producing 25,000 pies a year to 250,000.
Previously, the team relied on a rented kitchen located an hour and a half away from its store, limiting production and adding significant overheads. The new facility will reduce monthly costs by more than half and create the capacity needed to serve both existing customers and new wholesale partners.
“We’ve had an unbelievable first year of business,” said Gareth Owens, co-founder of Donald’s Pies.
“Starting out as a pop-up last summer, I couldn’t have imagined how quickly we’d grow. Passion got us started, but it doesn’t pay for equipment or kitchens. Securing the Start Up Loan was absolutely vital for us – it gave us the capital to bring production in-house and the ability to say yes to opportunities rather than turning them away. There’s no way we would have been able to grow the way we have without it.”
Since securing the loan, Donald’s has signed 12 new wholesale contracts starting this autumn and is preparing to launch an e-commerce platform. The business is hoping to open two additional UK stores over the next year, with ambitions to expand across London and the South West.
In addition to the Start Up Loan, Donald’s also raised £70,000 through a community investment round, which provided extra support in completing the kitchen build and scaling operations.
Gareth, who previously worked in the coffee industry running two businesses before founding Donald’s, drew inspiration for the brand from time spent in New Zealand, where bakery pies are a cultural staple, and from his late grandfather Donald, after whom the company is named.
Jessica Phillips-Harris, Senior Manager for Wales at the British Business Bank, said:
“Donald’s Pies is a fantastic example of how Start Up Loans can help turn ambition into tangible growth. By reducing costs and massively increasing capacity, the new production kitchen gives Gareth and his team the platform they need to scale into a significant national food brand.
“We’re proud to have supported their journey and look forward to seeing their next stage of growth.”
The British Business Bank’s Start Up Loans programme provides government-backed loans of up to £25,000 per individual, alongside free mentoring and support for new business owners across the UK.
