Egg-free cake specialist Cake Box is set to significantly grow its estate across the UK after announcing record revenue for 2020/21.
In a full year trading update, the business said it delivered a strong performance with like-for-like sales at franchise stores up 14.7% in the 40 weeks from 1 June 2020 to 7 March 2021. As such, it expects to report a 16% revenue increase for the year with adjusted profit before tax in line with market expectations.
Cake Box increased its portfolio with a ‘very strong opening programme’ in the second half of the year with 17 new stores in locations including Gloucester, Epsom, Ipswich and Hove. Overall, there were 24 store openings taking the total number of franchise stores to 157 at period end.
This is set to continue in 2021 and beyond as the business is currently holding franchise deposits for 52 sites across the country.
It is also trialling five Cake Box kiosks with a national supermarket chain and described the results so far as ‘encouraging’.
The expansion is supported by a bakery and distribution centre in Coventry which came online in March. The firm has two other facilities in Enfield and Bradford.
Elsewhere, progress was made on delivery as Cake Box rolled out its own-brand delivery platform with ‘pleasing early results’. This, it said, complements existing click & collect and third-party offerings. Notably, online sales were up 84% year on year.
“I am very pleased with the strong trading momentum in the second half, continuing the recovery we saw as our shops began to reopen from May last year. Customer appetite for our products has continued to grow, with good traction across our expanded online and delivery services,” said Sukh Chamdal, co-founder and CEO of Cake Box.
Chamdal thanked Cake Box franchisees who he said helped the firm “emerge stronger from a year marked by the global pandemic”. The business welcomed 15 new franchisees over the course of the year as part of the 24 new store openings.
“Despite continued uncertainty in the operating environment, our unique proposition for customers and new and existing franchisees remains highly attractive and we are confident of making continued progress in the years ahead,” he added.