4 Advantages of Running a Cake Business

Alice Tuffery, writer

Published at 21/10/2018, Updated on 04/05/2022 , Reading time: 7 min

4 Advantages of Running a Cake Business — Photo © cake-business.jpg

mermaid unicorn cake — Photo © mermaid-unicorn-cake.jpg

Who wouldn’t want to start a cake business? Let’s look at some of the biggest advantages of doing so.

If you’ve always loved baking, you may be interested in starting your own cake business under a franchise brand. By doing this, you can benefit from a tried and tested model and rely on the support of industry experts as you set up and run your unit. But there are plenty more advantages to launching a business in the cake sector. Let’s take a look at a few of the biggest ones.

Advantages of starting a cake business

1. Take advantage of industry trends

You don’t need us to tell you that cakes are incredibly popular, so there is considerable competition among businesses operating in the baked goods sector. But you can increase your sales by keeping abreast of the latest trends and developments in the industry and creating cakes with them in mind.

For instance, many cake manufacturers and retailers have capitalised on demand by focussing more on ‘naked’ cakes, where minimal icing exposes some or all of the sponge underneath, and themed cakes for children’s parties. Within the latter category, mermaid and unicorn cakes have been extremely popular.

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2. Work from home or the high street

When you start a cake business, you can choose to operate as an online store or from a high street premises. A traditional ‘brick and mortar’ cake shop can take advantage of passing trade, capturing the attention of customers with an attractive façade and brand identity. While this does incur much higher overheads, it also makes it far easier to reach new customers and begin building a reputation for excellence.

A brick and mortar business favours entrepreneurs who enjoy interacting with customers and can work a substantial number of hours. If you choose this option, you’ll also need a flair for shop design and retail aesthetics. After all, there’s nothing more enticing than a well-stocked and beautifully arranged cake shop.

As an online business, however, you could sell cakes to customers through an online portal or supply your products to cafes and bakeries around the country. If you choose the latter, you’ll need to be able to bake large quantities of cake and be confident in your ability to deliver them regularly and punctually. In an ideal world, you would balance both these revenue streams to maintain a regular, stable income from B2B and B2C orders.

3. Create a good work-life balance

Many cake franchises offer investors the chance to operate as a part-time or full-time franchisee, so it’s important to consider what you want from the role before you sign up. If you’d like to enjoy the freedom and flexibility that comes with working fewer hours or fitting a job in around other commitments, it may be better to go for a part-time agreement.

But if you need to financially support your family, a full-time agreement may be necessary. This will require a lot of hard work in the initial stages, but it’s likely you’ll be able to develop a more flexible working schedule further down the line. Thanks to the flexible nature of cake businesses, you’ll be able to choose hours to suit your lifestyle.

4. Baking cakes can be fun

Baking cakes is an inherently creative skill. Your work won’t just be about creating a product and selling it on. You’ll get the chance to come up with innovative, exciting new bakes to distinguish yourself in the market – especially if you sell personalised cakes for birthdays and other special occasions.

From hamburger-esque creations to controversial ‘childbirth cakes’, you’re only limited by your imagination when it comes to crafting tasty bakes! Coming up with fresh ideas should also prove a nice distraction from managing the business. In between sorting your accounts, for example, you can unwind by sketching your latest cake design.

The current state of the cake sector

It’s fair to say almost everyone loves cake; according to Mintel, 93 percent of us eat it regularly here in the UK. As a result, the popularity of the comforting treat doesn’t seem to be diminishing. In the UK, the market for cakes, cake bars and sweet baked goods increased by 7.4 percent between 2013 and 2018; we seem to be buying even more cake than before.

So, if you can set up a business selling high-quality, affordable bakes, you’ll be able to take a slice of a very profitable market. But before you do, it’s worth brushing up on your industry knowledge to make sure you can maximise your profit. For example, research shows 44 percent of cake buyers would pay more for a freshly-baked product – this figure rises to 51 percent in parents of children under five years old.

A few franchises to look out for

To get you started, let’s take a look at some of the best cake franchise opportunities available at the moment.

Eggfree Cake Box

Eggfree Cakebox specialises in high-quality cakes made without the use of eggs, so those with intolerances and certain diets can enjoy a sweet treat. After opening in 2008, the business has expanded to 93 locations across the UK; now it’s looking for new franchisees to help take the franchise even further.

Becoming an Eggfree Cakebox franchisee: This franchise is appealing for investors across the UK, but it’s particularly interested in entrepreneurs based in the South-West of England, South Wales and Scotland. To find out more, click here.
How much you need to invest: Eggfree Cake Box hasn’t revealed how much it might cost to set up your own franchise unit, but you can find out by getting in touch with the business.
What you get for your investment: Once you’re on board, you’ll be given all the training you need to develop the skills to run a successful business. This includes on-site coaching and tailored residential courses.

Lola’s Cupcakes

Lola's Cupcakes was founded in 2006 by two friends who turned their passion for baking into a business. After launching concessionary stalls in trend-setting stores like Topshop and Selfridges, they quickly opened a flagship site in Mayfair. Since then, the company has grown at an impressive rate. so fast that they're not currently taking on new UK franchisees due to their existing commitments. However, they are looking for franchisees in a number of international territories, including the Far East, Middle East and Europe.

Becoming a Lola’s Cupcakes franchisee: This franchise has expanded so rapidly it’s no longer welcoming new UK investors. However, it is on the lookout for entrepreneurs interested in starting a business in an international territory. If you’d like to open a unit in Europe, the Middle East or Far East, get in touch with the brand today.
How much you need to invest: Lola’s Cupcakes hasn’t released investment figures yet, but you can access all the financial information you’ll need by contacting the business at hello@lolascupcakes.co.uk.
What you get for your investment: Although the franchise hasn’t explicitly disclosed the support it provides its franchisees, it’s likely you’ll be able to rely on initial training and ongoing guidance as you develop your business.

Cake Create

This franchise creates everything from 3D birthday cakes and scanned photo bakes to personalised wedding cakes and gluten-free options. It even offers a last-minute service, through which you can get a cake within 24 hours of ordering. Cake Create has also branched out by developing a catering menu; it provides canapes, pastries, quiches and sandwiches for meetings and events.

Becoming a Cake Create franchisee: Cake Create is appealing for investors hoping to launch a business in London. If you’d like to start a business in the capital, check out the business’ website today.
How much you need to invest: Investment costs haven’t been revealed yet, but you can find out more by heading to https://www.cakecreate.co.uk/franchise.
What you get for your investment: It’s likely you’ll be given initial training, as well as support in all aspects of the business, from operations to product development and marketing.

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Running a franchise in the cake sector

The only way you can find the best opportunities out there is by using every tool at your disposal to search for suitable franchises. This means getting online, going to franchise exhibitions, talking to business contacts and reading franchising trade publications.

All franchises offer something different, so make sure you understand what they’re willing to provide as part of the franchise package, as well as what they want in return. Once you’ve drawn up a shortlist, it’s time to get in touch with each franchisor and discuss your options going forward.

For more information on how to start your own cake business, read our article here.

Or, to find out what opportunities are available in the wider bakery sector, click here.