Small high street cake shop

Local shoppers, families, office workers, and customers ordering for birthdays, weddings and events.

Walk-in sales of cakes and slices, higher-value custom orders, and possibly coffee or boxed cakes for gifts and corporate orders.

• Baking and decorating to a consistent standard
• Managing stock, costs and waste
• Customer service
• Early starts and long days on your feet

• Register the premises as a food business with your local council before you start trading (this is normally required at least 28 days before opening, so check with your council)
• Check whether the unit needs planning permission or change of use, and whether any extraction or ventilation is needed
• Business rates, lease terms and deposits, so check these before signing
• Public liability and product liability insurance, plus employer's liability insurance if you hire staff
• Allergen labelling rules and food hygiene inspections
• Quiet periods and rising ingredient costs can squeeze margins

Startup costs are estimated at typically around £15,000 to £60,000, depending on the unit, counter and baking area fit-out, and deposits. Check business rates and lease terms before signing.

Monthly revenue is typically estimated at around £5,000 to £20,000, depending on location, range, pricing and custom orders. Quiet periods and rising ingredient costs can squeeze margins, so these are revenue estimates, not profit.

Check registering the premises as a food business with your council, normally at least 28 days before opening. Also check planning or change of use, ventilation, allergen labelling, food hygiene inspections and insurance, including employer's liability if you hire staff.