Deep North, an artisan bakery and coffee company that has become a North East favourite, is significantly scaling up its operations with the opening of a new headquarters and central production facility in Newcastle, alongside launching its fourth shop in the region.
The expansion represents a major milestone for the independent firm, founded in 2022 by Phil King and Tom Clark, which has built a reputation for its scratch-made doughnuts. Each batch undergoes a meticulous 24 to 36-hour process of making and proving dough, followed by rolling, frying, and decorating with homemade jams, fillings, and glazes.
The new production kitchen and office space are set to substantially increase Deep North’s output and provide a modernised working environment for its 29 employees. The facility includes room for future growth as the company pursues its ambition to open more stores across the North East. Adjoined to the kitchen is the new shop in Ouseburn, creating an “experiential environment” where customers can watch the doughnut-making process while enjoying coffee, according to owner and director Phil King.
Deep North’s existing shops are located in Tynemouth at 34 Front Street, Ouseburn at Arch 6, Stepney Bank, and Sheepfolds Stables in Sunderland. The business also frequently appears at various events and markets across the region.
The growth has been bolstered by targeted financial support. Deep North received a £40,000 grant from business support organisation UMi through the Business Growth Fund, which UMi manages on behalf of Gateshead Metropolitan Borough Council, the North East Combined Authority, and Sunderland City Council. This fund is part of a larger £1.18 million programme aimed at stimulating business growth and creating employment opportunities in the area.
Previously, in February 2024, the bakery secured a five-figure investment from the North East Small Loan Fund, managed by NEL Fund Managers as part of the £153 million North East Fund. That investment was used to acquire additional kitchen equipment to increase daily doughnut production, with aims at the time to open more outlets and create approximately 25 new jobs within two years, which would have brought the workforce to over 40.
Phil King stated that the new headquarters was “central to ensuring we can achieve our goal of continuing to open more stores across the region.” He added, “We are thrilled to officially unveil our new headquarters and central production kitchen which marks yet another major milestone for the business.”
The facility also enables Deep North to diversify its offerings by hosting events such as doughnut decorating and barista masterclasses, which have already commenced at the Ouseburn location. “We set up Deep North to bring something new to the North East and the launch of a dedicated events programme is another example of how we’re continuing to do just that,” Mr King said.
Beyond expansion, the company emphasises sustainability through the use of local suppliers, recyclable materials, and efforts to reduce single-use products. Staff welfare is prioritised via training, appraisals, and open communication, and Deep North engages with the community through collaborations with local groups and events.
Phil Sly, specialist adviser at UMi, commented: “Deep North is a fantastic example of how the right finance and support can help ambitious businesses realise their goals and scale sustainably. The new facility will provide Deep North with the space and infrastructure it needs to grow its workforce, increase output and expand its presence across the region.”
