Cake Box: Will there be another bid?
Update six months till September 2024
Short description
Cake Box is a franchise of pastry shops, specifically specializing in egg-free pastries. An egg-free diet may be adopted for health reasons or due to religious beliefs. It was unfamiliar to me before I analyzed Cake Box, but apparently, a certain part within the Hindu community is not allowed to consume eggs.
Of course, they have by now outgrown the niche of specific communities. The egg-free cakes have gained popularity among the general public; and among vegans, their cakes are well-liked. It's also very convenient that for a wedding or birthday, you don't need different cakes for those who are vegan or not – you can just have one large cake.
Why we selected Cake Box
Regardless of the economic situation, there will always be birthdays, weddings, and other events, big or small, that we want to celebrate. And that inevitably includes cakes.
The competition is either small and local or a large industrial chain and therefore not as flexible and fresh. In addition, their egg-free concept is relatively unique.
As a franchise group, they are not as capital-intensive as they would be if they had to operate everything themselves. Additionally, franchisees are often much more active and entrepreneurial than regular employees, which will certainly aid growth at the store level.
Cake Box is a small company that can continue to grow at a good pace for several more years. Major expenses for the third location, the professionalization of IT, monitoring, and management are now behind us. All of these weighed on cash flow in recent years, although it remained very attractive. After these growing pains, they have now entered the next phase of their maturity.