A BAKERY business is aiming for further expansion after doing a roaring trade at the first of its two new North-East shops.

North-East Bakery launched its Nichols store in Saddler Street, Durham City, at the beginning of this month.

It is the first of two Nichols stores, with the second opening in Eldon Square, Newcastle, next month.

There are now 14 Nichols stores in the region, with the majority rebranded Milligan’s Bakeries outlets which the company acquired.

Nichols is aiming to attract a broad consumer base by offering quality food using locally-sourced products in contemporary stores but without charging premium prices.

Breakfasts cooked in front of the customer and lunchtime dishes such as panacalty are on offer. As well as this, all pies and pasties are traditionally made.

Managing director Greg Phillips and business partner Steve Silvester said they were now looking for more locations in the region.

Mr Phillips said: “We are talking about particular sites in particular towns where we feel Nichols will be well received.

“We are looking at the opportunities that present themselves and want to take the business onto the next level.”

He said the company was presently looking at sites in Middlesbrough, Harrogate, Hartlepool and York.

Mr Phillips said: “We are actively looking at a number of areas.

“We could open 20 of the wrong stores next week, but we know what we need.”

Mr Phillips believed that the early success of the Durham store, which had been busy since it opened, demonstrated that Nichols was offering what people wanted.

He said: “In Durham, people are coming into the store and saying the sort of things we have been saying in meetings.

“Durham has been crying out for somewhere a bit alternative to the other brands, the shop looks fantastic and people say they have expected to pay more.

“People expect it to be expensive but we are competitively priced.”

Mr Silvester said: “People are now more discerning, gone are the days when they would except cheap rubbish. Customers expect and demand the quality we are offering.

“They don’t want things mass produced in a factory.

“If you take our breakfast sandwiches we are using very modern technology, cooking these products from scratch in front of people in a minute to a minute and a half.

“We have used the best ingredients and that is fundamental to what we are achieving. You can deliver that at a reasonable price.”

The two stores have created 16 jobs and the company, founded five years ago and based in Newburn, Newcastle, has a total workforce of more than 140.

Mr Phillips believed the policy of buying locally wherever possible also helped the regional economy.

He said: “Steve and I feel passionately about things such as buying locally.

“We set up the business before it was the latest buzzword, we support the regional economy and are proud of how many people we employ in the area.”

The company, which was originally formed from the buyout of the Chapel Bakery and Patisserie in 2004, is now turning over £3.4m a year.