Let Them Eat Cake

“Let them eat cake” is one of the most famous quotes of the French Revolution, in 1789, and it is attributed to the queen herself, Marie-Antoinette. As the story goes, it was the queen’s response upon learning that her starving poor subjects had no bread. In reality, the French quote is more something like “let them eat brioche”, but the anecdote still holds in making the point that Marie-Antoinette was oblivious to the living conditions of ordinary people. Someone who can’t afford bread isn’t likely to be able to eat something as luxurious and rich as brioche, or a cake, as the translation of the time goes. While there is no historical evidence that Marie-Antoinette ever uttered the infamous words, it is a universal folklore tale that has been found in other parts of Europe. We might as well call it one of the first historical jokes that were made to poke fun at rulers and noblemen.

Nevertheless, outside of the anecdote, there’s something deeply satisfying about a rich cake. Its taste, luxurious texture and unique decoration make the cake the ultimate serotonin-loaded food. Eating cake is designed to make people feel better, and that’s precisely why it’s such a profitable business.

Selling cupcakes is a popular business

A cake shop could work

Starting a cake business demands a real passion for cake, naturally. But ultimately, you also need to make sure that you’ve got the right attitude and skill set for the task. Baking a cake is a work of love that takes a lot of time and attention to details. It’s one thing to bake one cake for your family party, but it’s another matter to bake dozens of cakes every day for customers. Consequently, time management is key in operating this popular business, from ingredients selection to social media presence, without mentioning the indispensable baking classes to learn the best techniques. However, a cake shop is an appealing business opportunity that can thrive in urban areas, especially if you offer a sit-in room with tea and coffee.

Cutting down your costs

They say that the first year in business is the toughest, and this can be extremely difficult for bakeries, too. The competition is harsh, even in the cake industry, so it’s essential to consider not only competitive approaches but also effective strategies to keep your costs low. Space is one of the most expensive items in the business world, as large premises can be extremely expensive to buy or rent. Ultimately, for a cake shop, you will need plenty of room to prepare your cake, welcome your clients and run your business. A baking area with a walk in fridge and freezer is absolutely necessary for your day-to-day activities. You might also want to keep an emergency address book with contacts for a walk in freezer repair to an oven replacement. Additionally, you will need a storage area for your dry ingredients, but you keep it small by using external self storage facilities. This can help to keep your rental costs low until you can afford bigger premises.

Plan a baking area

What are the most popular products?

What do successful cake and bakery shops have in common? They bring a little touch of magic into everyday life. Take Dominique Ansel Bakery in New York City, for instance. Aside from delicious tarts and amazing looking French patisserie, Dominique Ansel gives the sweet-tooth customers something they can’t get anywhere else: the cronut. Sadaharu Aoki in Paris and Tokyo makes a point of combining Japanese flavors and French pastry with its original creations, including the black sesame eclair. In short, every successful cake shop has one cake that no one else makes. It’s this unique offer that attracts customers and that gives the necessary competitive edge to survive in a harsh industry.

Which audience should you choose?

When you open a shop, the main question you need to answer to be able to sell is: who is your target audience. Choosing a niche market, such as the vegan diet, can be a good idea, but it forces you to leave vast audience groups out. The most challenging strategy is not to define the audience, but to expand the target market beyond your niche. According to the 1921 book “How to Analyze People on Sight: The Five Human Types,” you need to find similarities between customer types, so that you can provide visibility to the yet unrealized customer. For instance, demographic data show that the typical cake eater enjoys certain things such as fine food and comfortable clothing. Using these characteristics can help you to identify new cake eaters in a different audience group.

In conclusion, there is more strategy in the cake industry that it might appear at first sight. Being an experienced baker is an advantage, but without financial acumen and strategic deployment, your cake shop may not gain the competitive edge it needs.