Starting a Cake Business in Australia and New Zealand

cake business in australia

Are you passionate about baking and dream of starting a cake business like ‘The Cheesecake Shop’? While it may seem like an easy and fun niche, the cake-making business requires a great deal of effort, planning, and attention to detail. In this article, we’ll guide you on how to start a successful cake business in Australia and what factors you need to consider.

Research Your Location and Competition

One of the first steps to start a cake business is to conduct thorough research on the location and competition. You can start by exploring different areas and gathering information on the market demand for cakes. For instance, you could ask yourself questions such as “How many cake shops are located in the area?” or “What types of cakes are popular in the region?”

You can also leverage the internet to conduct research on the cake-making industry. Search engines, social media, cake-making websites, and YouTube can provide valuable insights into the latest trends, techniques, and business strategies. Additionally, consider attending food and cake exhibitions, visiting cake shops, and talking to industry professionals to gain a comprehensive understanding of the market.

Write Down Your Cake Business Queries

Writing down your queries can help you organize your thoughts and focus on key aspects of starting a cake business. Some of the essential queries you might want to consider include:

  • Why do you want to start a cake business, and do you have the necessary baking skills?
  • Can you afford to hire employees or work solo?
  • What’s unique about your cakes, and how do they compare to others in the market?
  • What are the initial startup costs, including licenses, ingredients, and marketing?
  • Are your family and friends supportive of your decision?
  • Who are your competitors, and how can you differentiate your cakes from theirs?
  • What marketing tactics can you use to promote your business?
  • How will you ensure timely and quality cake delivery?

Starting a Cake Business: A Strategic Plan for Success

Are you considering starting a cake business? If yes, then there are some crucial steps you need to cover without really missing out on any. In this article, we’ll discuss a strategic plan that will help you start a cake business that can outrank other websites.

Identify the Business Activity

The first step in starting a cake business is to identify the business activity, which in this case is ‘Cake Making.’ You need to determine whether you will be operating your business from home or a store. This will help you decide the type of company you need to establish.

Identify the Type of Company

The next step is to identify the type of company that suits your cake business. If you are an individual, a Sole Trader company would be suitable for you. On the other hand, if you plan to operate a store or company, a Proprietary Limited (Pty Ltd) company would be more appropriate.

Summarize Your Business and Vision Together

Your business and vision should go hand in hand. It is essential to write down the description of your business and know the value it will offer to your clients. This will help you stand out from the thousands of other cake businesses in Australia and New Zealand.

Apply for a Food License

Before you start your cake business, you need to apply for a food license. This is a legal requirement that ensures the safety and quality of the food you are providing to your clients.

Decide Revenue You’d Earn on Each Client/Transaction

You need to decide the revenue you will earn on each client or transaction. This will help you determine your pricing strategy and ensure that you make a profit.

Know the Size of the Market and Your Competitors

It is essential to know the size of the market and your competitors. This will help you identify the gap in the market and determine how you can fill it. You need to offer something unique that sets you apart from your competitors.

Establish Your Finance Company Legally

You need to establish your finance company legally. You can register your business name with ASIC and apply for a food license. This is essential to ensure that your cake business is legal and operating within the regulations of your state.

The Cheesecake Shop Story In-Short

The Cheesecake Shop is a success story that can inspire you to start your own cake business. The founders, Warwick and Robert Konopacki, established the first store in Rozelle, Sydney, in 1991. Today, the business has over 225 outlets across Australia and New Zealand. The key to their success is their dedication to providing a quality product to every single customer.


Starting a cake business requires careful planning and execution. By following the steps outlined in this article, you can start a successful cake business that stands out from the competition. Remember, the key to success is providing value to your clients and delivering a quality product every time.

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