There were drastically different fortunes in the bread world this week as sandwich chain EAT announced ambitious expansion plans and the creation of 1500 new jobs, whilst breadmakers Hovis revealed the loss of over 900 jobs next year. EAT is a relative newcomer when compared to Hovis – the former was founded in 1996 while the latter has been a staple part of British life since 1886. But the young pup is the company in apparent rude health today.

EAT sells more than 200,000 sandwiches a week and plans to grow from its current 116 branches to over 200 within 4 years. Originating in London and the South East, it has now spread across the UK, with sales at £100m a year – up 50% over the past four years – and profits of £2.7m in the last year. It has based its business on sandwiches and coffee, but now incorporates “pies, porridge and hot pots” according to husband-and-wife founders Niall and Faith MacArthur.

Meanwhile, Hovis, a division of Premier Foods, has been struggling against tough competition and high wheat prices, with the final straw appearing to be the loss of its £75m contract with the Co-op, which has gone to rivals Allied Bakeries. This has led to the announcement of the closure of two of its 13 factories, in Birmingham and London, with two other distribution sites in Plymouth and Mendlesham also facing the axe. Premier Food has struggled with debts of £1bn and the move could be the precursor to Hovis itself being sold off.

Birmingham MPs are looking to intervene to save jobs, but it seems hard to see what they can achieve in the face of pure capitalism in action: tough conditions and strong competition. Meanwhile the success of EAT will be a welcome boost to the economy, particularly so as the jobs will not be concentrated in London, but distributed across the country. Meanwhile the people of Birmingham will undoubtedly be hoping, perhaps in vain, that the majority of the new shops will be in their city.