A beloved London bakery has won widespread praise for an unusually transparent social media post that laid bare the harsh financial realities of running a hospitality business in the capital today.
The Social Enterprise Behind the Success
The Dusty Knuckle first opened its doors in 2014, founded by childhood friends Max Tobias, Rebecca Oliver, and Daisy Terry. From the outset, it was conceived as a social enterprise with a core mission to support at-risk young people by providing them with valuable skills and mentorship in baking. The venture has since flourished, expanding to locations in Dalston and Harringay, and earning acclaim from culinary luminaries like chefs Jamie Oliver and Yotam Ottolenghi, as well as actor Ashley Walters.
A Stark Financial Breakdown
In a recent Instagram post, the bakery provided a candid percentage breakdown of where its income goes, revealing the slim margins it operates on. The company prides itself on fair pay, with a substantial 51 per cent of its revenue allocated to staff wages. High-quality ingredients consume another 23 per cent, while general running costs account for 15 per cent.
A further seven per cent is earmarked for what the post frankly termed 'fixing and building s**t' – the inevitable cost of equipment repairs and maintenance. After all these outgoings, the bakery is left with just four per cent of its income, which it can 'hopefully' save for future investments.
Public Backing for Price Rises
Faced with these figures, the bakery explained it has no choice but to implement modest price increases to stay afloat. It announced that bread prices would rise 'a smidge' initially, with a review of coffee, pastries, and sandwiches to follow when the new London Living Wage increase impacts the wider team.
"Not very fun to post, this," the bakery admitted, acknowledging its commitment to affordability. Far from criticising the move, however, customers and followers flooded the comments with support and commendation for the bakery's honesty.
One supporter wrote: "Always appreciate your transparency. Appreciate the people who work there too. Things are tough at the moment." Another described the post as "Excellent... Honest and honourable." A third praised the bakery as "A proper employer and workplace, paying a decent wage," while also celebrating its "banging" products.
A fourth comment highlighted the dual importance of the business: "So brilliant to show people how tough it is being in hospitality right now but also how important it is. Keep doing what you’re doing! It’s not only delicious but such an important fabric in society…."
