Neighbourhood Cake Shop

Walk-in customers buying treats, locals ordering birthday and wedding cakes, and businesses or restaurants buying desserts.

Sales of whole cakes, slices and cupcakes at the counter, plus higher-priced custom orders. Coffee or boxed gifts can add to each sale.

• Professional baking and decorating
• Managing costs and wastage
• Customer service
• Running a small team or shifts

• Food premises permit and inspections from your local public health unit, and often a safe food handling certificate
• Lease terms, fit-out costs for the kitchen and ventilation, and zoning for food use; fit-out can be a large share of your budget, especially if the unit has no existing food-grade kitchen
• Commercial general liability insurance, and WCB/WSIB coverage once you hire (rules differ by province)
• Slow winter months and unsold stock, so plan quantities carefully
• Allergen labelling and, in Quebec, French-language signage and labelling rules

Estimates suggest startup costs are typically around $80,000 to $250,000, depending on the unit and kitchen fit-out. Fit-out can be a large share of the budget, especially if the unit has no existing food-grade kitchen.

Monthly revenue is typically estimated at around $6,000 to $30,000, depending on location, opening hours and how many custom orders you win. That is revenue, not profit, so allow for ingredients, rent, wages and unsold stock.

Check for a food premises permit and inspections from your local public health unit, and often a safe food handling certificate. Also check lease terms, zoning for food use, insurance, allergen labelling and, in Quebec, French-language rules.