GENUINE CAKES

Purveyors of Luxury Cakes for all Occasions

Genuine Cakes is a London-based bakery providing a range of baked goods from bespoke wedding and celebration cakes through to cupcakes, layer cakes and macarons which can be purchased in store or online for delivery.

THE IDEA

PRODUCTS & SERVICES

GC is the preferred wedding cake supplier to over 15 top London hotels such as Claridges, The Four Seasons, The Lanesborough, the Connaught and Savoy as well as being the cake supplier of choice to London based billionaires and celebrities such as Cheryl Cole and Rochelle Humes. The GC premium brand of cakes have also featured in a number of wedding press articles including being voted in the top ten of wedding cake designs by Harpers Bizarre. The mark-up is excellent, with a gross profit of 70 per cent on average per item.

PROBLEM SOLVED

Middle income to HNWI’s continue to demand bespoke life event cakes with innovative cake artistry. GC has sold cakes at a price of £16k and £9k for these exclusive creations and has delivered cakes to events from New York to the Middle East. It is the originality and complexity of the design that is in demand particularly from UHNWIS. Corporate orders are also on the rise. London with over 376,000 HNW’s is the perfect platform for GC to grow its premium bespoke brand both domestically and internationally.

REVENUE MODEL

GC earns on average 70% gross profit on all of its standard baked goods, but this profit rises significantly for the bespoke range. Cupcakes sell for between £2-£2.50 and cost 24p to produce. A standard 4 tier wedding cake price is from £1,500, but costs £350 to produce, including iced decorations. The highest price points achieved for bespoke tiered cakes have been £16k and £9k respectively, but cost on average £1.5k to produce.

EXIT STRATEGY

The founders would like to position the company for an exit, or partial exit, event in 4-5 years. GC believes it could take on private equity funding to grow the brand internationally through a franchise model once the turnover and profit numbers are scaled significantly. This would potentially generate an exit event for EIS investors.

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Source: icnw