Local cake shop with a front counter

Local shoppers wanting a treat or last-minute cake, families, offices and event hosts placing larger orders.

Sales of whole cakes, slices and cupcakes over the counter, plus higher-value custom and event orders and optional coffee sales.

• Commercial baking and decorating
• Costing and managing stock
• Customer service
• Managing staff and rosters

• Council food premises registration, inspections and fit-out requirements, which vary by state
• A food safety supervisor requirement in some states, check your state rules
• Lease terms, rent and fit-out costs before you have regular sales
• Workers compensation insurance and award wages once you hire staff
• Public liability, product liability and contents insurance
• Allergen labelling and waste from unsold fresh stock

Startup costs are typically around $30,000 to $120,000, depending on the premises, fit-out, equipment and lease terms. These are estimates, so get quotes for your own site and check rent and fit-out costs before you have regular sales.

Monthly revenue is typically around $8,000 to $40,000, depending on location, range and how many custom orders you win. This is sales before costs, and the estimate assumes at least about 40 hours a week.

Check council food premises registration, inspections and fit-out requirements, which vary by state, and whether your state requires a food safety supervisor. Also check lease terms, insurance, allergen labelling, and workers compensation and award wages once you hire staff.