This article is a part of Poland Unpacked. Weekly intelligence for decision-makers
The family-owned confectionery chain is planning investments worth tens of millions of zlotys (PLN), equivalent to several million euros (EUR), to expand its retail network, accelerate digital transformation, adopt new technologies, and increase production capacity. “We want to be customers’ first choice across Poland – with a presence in every region,” says Michał Sowa, co-owner of the chain.
This year, Cukiernia Sowa marks its 80th anniversary. In 1946, Feliks Sowa and his wife, Stanisława, opened the first bakery on Pomorska Street in Bydgoszcz.
“My grandfather used to say that ‘it’s easier to talk over a piece of cake,’” says Michał Sowa, co-owner of the chain. “We emphasize that we are a Polish family business, with Polish capital, and that we pay taxes in Poland.”
Cukiernia Sowa network
Cukiernia Sowa is currently operating a network of 173 outlets across 15 voivodeships, with a strong focus on large cities. Its business model is mixed: 53 locations are company-owned, while 120 operate under a franchise system.
“We also have one franchised point in London, but we do not plan further international expansion. Entry into the UK market was reassessed following Brexit, and additionally the return of Polish nationals from the United Kingdom has reduced its potential. As a result, we are focusing on the domestic market. Our goal is to become the first-choice brand in the confectionery and café segment in Poland, with a presence in every voivodeship. We perform well both in shopping malls and residential-area locations. The market remains sufficiently large to support multiple chains,” says Michał Sowa.
Entry into the UK market was reassessed following Brexit, and the return of Polish nationals from the United Kingdom has further reduced its potential. As a result, the company is focusing on its domestic market, aiming to become the leading brand in the confectionery and café segment in Poland, with nationwide coverage across all voivodeships.
The company’s strategy is based on controlled, organic growth, without pressure to scale rapidly.
“We open a few new locations each year, but not solely to improve headline figures. This year we plan to open four additional company-owned outlets and four franchise locations. The cost of launching a single site is approximately PLN 1.2–1.5 million (EUR 0.28–0.35 million), net. At the same time, we are investing in upgrading our existing network. Over the next five years, we want all locations to operate under a new standard and offer the full product portfolio. Currently, about half of our outlets already operate under the new concept,” notes Michał Sowa.
The current structure of the chain is largely the result of its historical development.
“In the 1990s and early 2000s, we did not operate a classic franchise model, but rather a form of commercial cooperation. Some outlets also operated under different names. It was only after 2010 that we structured the franchise system – introducing a unified brand and consistent standards. Many partners have stayed with us to this day and are developing additional locations. At the same time, we are investing in our company-owned network – we value a dual-track model,” says Michał Sowa.
The company declares a preference for organic growth but does not rule out acquisitions.
“We are analyzing acquisition offers that we receive on a regular basis. We are considering both individual locations and entire chains – provided they can be integrated or rebranded. Such moves could accelerate development in a complementary way,” he adds.
Investment plans
In 2024, Cukiernia Sowa generated PLN 298 million (approx. EUR 69 million) in revenue and PLN 23 million (approx. EUR 5.3 million) in net profit. In 2025, revenues increased to PLN 328 million (approx. EUR 76 million).
“We assume annual growth of 10–12%. An analysis of consumer trends and experience from Western markets points to further development potential. In the confectionery segment, we mainly compete with local companies with strong regional positions, while in the café segment – particularly in shopping malls – we compete with international chains and ice cream brands,” says Michał Sowa.
A key investment priority is expanding production capacity and logistics infrastructure.
“We are starting the process of expanding production and warehousing capacity. Investments in this area are estimated at around PLN 20 million (approx. EUR 4.6 million), net, and will be implemented over the coming years. Part of the operations will be relocated to a site near Bydgoszcz, which will ease the burden on our headquarters. Expanding warehouse capacity will improve production and logistics management,” says Michał Sowa.
Currently, more than 90% of production – including coffee roasting and ice cream manufacturing – is carried out in-house. The remaining assortment is sourced from external suppliers.
At the same time, the company is investing in digitalization and new sales channels.
“The q-commerce channel is developing dynamically. We already cooperate with most operators. Despite higher prices, customers are increasingly willing to order products for home or office delivery. It is not yet a core sales channel, but we see its potential. We also plan to launch e-commerce and a mobile app with a Click & Collect function, allowing customers to order and pick up products at a selected confectionery. We are also considering the development of mail-order sales,” Michał Sowa concludes.
Expert's perspective
Cukiernia Sowa’s development model: diversification of the offer
At present, the core target group can be broadly defined as people aged 40 and above, with the offer more clearly addressed to women than men. The design of the confectioneries is aesthetically pleasing, brand recognition is high, and product presentation supports sales. At the same time, there is a lack of uniform service standards and more consistent merchandising. Customer communication remains largely dependent on individual locations and staff quality.
Cukiernia Sowa is associated with high-quality pralines, good cakes, and a place where customers can comfortably sit down during shopping. It is also a space conducive to meetings – both informal and business-related. Recently, an improvement in service quality has been visible, most likely driven by intensified training and internal initiatives. New solutions are being introduced, such as self-service zones, and store remodeling is underway. The emphasis on the artisanal nature of production and the expansion of the flavor portfolio should also be assessed positively.
At the same time, the assortment remains fragmented and insufficiently structured, which makes it difficult to identify a coherent product strategy. Bread, sandwiches, coffee, pralines, cakes, snacks, ice cream, and sugar-free products coexist without a clear hierarchy. Despite strong quality, it is difficult to identify a clear differentiator versus competitors or a consistent brand DNA. There is also a lack of a more explicit ambition to set industry trends, even though the capabilities and infrastructure to do so are in place.
In terms of communication, greater consistency and clarity are needed. Social media and brand storytelling could be developed in a more coherent way – for example, through a stronger emphasis on craftsmanship or the company’s history. Despite participation in competitions and educational activities, trend-driven inspiration is not always clearly visible in communications.
Cukiernia Sowa remains a strong, well-managed Polish brand. In the coming years, however, a key priority will be to streamline its strategy – both product and communication-related – and adapt it to demographic shifts, the development of digital channels, and evolving customer expectations.
The confectionery market
The confectionery market in Poland has undergone a significant transformation over the past decades.
“Outlets we remember from the 1990s or early 2000s were primarily used for purchasing cakes and sweets to take away. Today, they increasingly also function as cafés and are becoming meeting spaces – including for breakfasts. That is why we are investing in the development of the café area: tables, seating zones, and customer comfort. This is the direction in which the entire market is heading. It is not only the offer that is changing, but also the function of these places,” says Michał Sowa.
Several factors are behind this shift. First, Poles are increasingly inclined to spend time outside the home. Second, rising prices in traditional gastronomy have increased the attractiveness of cafés as a more affordable alternative. The average bill in such venues remains significantly lower than in restaurants, which encourages more frequent visits.
“The average bill in our locations is around PLN 38 (approx. EUR 8.80), but its level depends strongly on the location. In high-traffic points – such as railway stations – the basket value is lower, and sales are driven by volume. In café-oriented locations, particularly in shopping malls, customers spend more time, which translates into higher order values,” says Michał Sowa.
Although Cukiernia Sowa’s core customer base is not the youngest generation, the offer is gradually being adapted to younger consumers’ expectations.
“We are introducing products aligned with new trends – such as matcha-based desserts or sugar-free lines. At the same time, we are investing in technology, including interactive ordering kiosks, which simplify the purchasing process and respond to changing customer habits,” Mr. Sowa notes.
Cost pressures and labor market
The macroeconomic environment remains broadly supportive, but cost pressure is significant.
“Poland has solid economic fundamentals, but for us two cost categories are key: raw materials and labor. Last year, cocoa and dairy prices significantly increased production costs. The situation is now partly stabilizing, including due to new contracts. Previously, energy price volatility was also a strong factor. However, the greatest pressure still comes from raw material and labor costs, and we are particularly feeling the rise in gas prices used in the production process,” says Michał Sowa.
The company employs around 1,300 people across different segments of its operations – from production to sales.
“One of the main challenges remains the shortage of skilled workers, resulting from long-standing weaknesses in vocational education. In Bydgoszcz, we cooperate with two schools and observe that out of a class of 15–20 students, only two decide to continue working in the profession,” Michał Sowa notes.
According to the entrepreneur, technological change may partially ease staffing pressure, but will not fully solve the problem.
“Automation has potential, but its scale in our model is limited. At the same time, interest in manual professions is growing, which could be an opportunity for the industry. The challenge, however, is economics – basic products would need to cost as much as around PLN 30 (approx. EUR 7) to fully cover labor costs. Therefore, balancing craftsmanship with operational efficiency remains crucial,” Mr. Sowa concludes.
Family businesses
In Poland, there are approximately 1.2 million family-owned companies, accounting for as much as 90% of all enterprises – mainly in the SME sector.
“There are many well-known family businesses in Poland. We regularly meet within a group of successors, exchange experiences, and support one another. Regardless of the industry, we face very similar challenges. It is estimated that only 5–10% of companies make it to the third generation, and to the fourth generation – just a few percent. We are already in that first group, and our goal is to maintain this continuity. At the same time, we do not impose any career path on our children – we want them to have freedom of choice. For now, they treat the company as a space for play and learning,” says Michał Sowa.
Cukiernia Sowa is currently undergoing a succession process that is gradual and evolutionary in nature.
“My father still serves as CEO and is actively involved in management. Over time, as a family, we have developed decision-making mechanisms that allow us to act in the company’s best interest despite differences of opinion. My sister and I have been connected to the business from an early age, and after university we gradually took on responsibility. Today we are both shareholders and members of the management board. At the same time, we try to ensure that responsibility does not limit our ability to make decisions,” the entrepreneur emphasizes.
Key Takeaways
- The confectionery market has undergone a significant transformation – from a takeaway-oriented model to a hybrid format combining confectionery shops and cafés. In response, the company is investing in the development of café spaces and in enhancing the in-store customer experience.
- Cukiernia Sowa operates a network of 173 outlets across 15 voivodeships – 53 company-owned and 120 franchised – with plans for further gradual expansion.
- In 2024, the company generated PLN 298 million (approx. EUR 69 million) in revenue and PLN 23 million (approx. EUR 5.3 million) in net profit. In 2025, revenue rose to PLN 328 million (approx. EUR 76 million). The company expects annual growth of 10–12% in the coming years.