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Fortune
Fortune
Ryan Hogg

Londoners go to war with upmarket chain Gail's over gentrification

Customers observe social distancing as they sit outside a branch of Gail's bakery on Upper Street in Islington, North London. (Credit: Yui Mok/PA Images via Getty Images)

Hundreds of people in the trendy London neighborhood of Walthamstow have signed a petition against the opening of a new upmarket bakery in the area, as locals gripe with the group’s chairman’s previous statements on COVID, Brexit, and wokeness.

Walthamstow Village locals are trying to block Gail’s as they fear its opening will lead them down a similar fate to other London neighborhoods, which have watched their high streets become consumed by homogenized chain stores in a now-standard process of gentrification. 

Eateries like Gail’s, Franco Manca, and Wagamama have slowly entered areas with high levels of deprivation, often at the expense of independent competitors. 

These shops cater to middle-class London workers who have moved to outer boroughs like Waltham Forest in search of cheaper accommodation. 

“Gails, although respected for their quality, bring a risk of overshadowing our much-loved local stores due to their massive scale and advertising reach,” a statement attached to the petition reads. 

“This could lead to decreased visibility and pedestrian traffic towards independently run businesses, threatening their very existence and dismantling the character and diversity crucial to Walthamstow's charm.”

A total of 384 people had signed the petition on Change.org as of 9:45 GMT this morning. 

A representative for Gail’s didn’t immediately respond to a request for comment.

Gail’s outspoken chairman in the spotlight

An undercurrent of the protest against gentrification lies in Walthamstow’s reputation for progressive civic action, which has come to the fore following Israel’s invasion of Gaza and, more recently, riots sweeping across the U.K.

Walthamstow held a massive counter-protest following far-right demonstrations across major U.K. cities at the start of August. The anti-racism protest is estimated to have attracted a crowd of 10,000 to the streets of Walthamstow.

Locals have argued that this spirit is unlikely to align with the views of Gail’s minority owner and chairman, Luke Johnson.

Kathryn Parsons, co-founder of Decoded, left, and Luke Johnson, co-founder of Risk Capital Partners LLP, arrive in Downing Street for a business advisory group meeting in London, U.K., on Thursday, July 20, 2017. U.K. Prime Minister Theresa May will chair the first in a regular series of meetings of the business council in her official Downing Street residence, with discussions due to focus on the terms of the U.K.s withdrawal from the European Union, and wider economic issues such as t§he governments industrial strategy. Photographer: §Chris Ratcliffe/Bloomberg via Getty Images

While he has been quieter in recent years, Johnson made waves with a series of comments championing the opportunities of the U.K. leaving the EU. Waltham Forest voted with a 59.1% majority to remain a part of the EU in the 2016 referendum.

In the wake of the onset of the COVID-19 pandemic, Johnson also spoke out against lockdowns, describing them as a “medieval” policy. Several hospitality bosses criticized lockdowns, which hit their businesses' profits.

Johnson has most recently taken to X (formerly Twitter) to criticize the left as part of a widespread culture war, including protests over events in Gaza.

“Excellent demolition of ghastly woke universities,” Johnson posted on X after sharing a December op-ed in the Telegraph criticizing student protestors over allegations of antisemitism.

Johnson previously owned Pizza Express and the now-defunct bakery chain Patisserie Valerie. A proposed sale of Gail’s in 2017 was put on hold due to Brexit before Bain Capital took a controlling stake in 2021.

“If you came out to the counter-protest in Walthamstow but you back Gail’s in Walthamstow then you’re a huge hypocrite. This man’s narrative is the exact fuel that feeds the Far Right. We do not want them in our borough,” wrote one person in a comment under the petition.

Johnson’s positions have probably helped exacerbate tensions over Gail’s links to Israel, with pro-Palestine protestors calling for a boycott thanks to those links. 

Gail’s was founded in 2005 by Israeli baker Gail Mejia, and entrepreneur Ran Avidan. It was acquired by Johnson’s Bread Holdings in 2011.

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