Cake Box to open 20 new stores as Uber Eats and Deliveroo orders double sales
Cake Box said this morning that its sales nearly almost doubled for the past six months amid a strong recovery in customer demand.
The high street cream cake retailer said it was buoyed by its continued expansion, opening 20 new franchise sites over the six months to September, to bring it to a total of 174 stores.
The firm also stressed that it is in a “robust” position despite industry concerns over supply chain pressures in the food sector.
Shares in the company rose by 5.3 per cent to 354p in early trading.
Sukh Chamdal, chief executive officer and co-founder of the chain, said it has “several months of ingredients and the right measures in place to ensure that no event goes uncelebrated and no slice of cake goes unbaked, undelivered or uneaten”.
It came as the retail business said trade has been “strong” across both its store estate and online operation.
Cake Box said total revenues for the half-year were up 91 per cent to £16.4m against the same period last year. It added that franchisee online sales increased by 68 per cent to £6.7m, as it saw higher sales through delivery platforms such as Uber Eats, Just Eat and Deliveroo.
Franchisees
The firm added that it has a strong pipeline of new potential franchisees, with 62 deposits held for potential new openings at the end of the period.
The appeal of the Group’s franchise proposition is reflected in the current pipeline of new potential franchisees, with 62 holding deposits held at period end.
Mr Chamdal said: “Our performance during the last six months demonstrates the ongoing appeal of our unique cake offering.
“With strong sales growth accompanied by record expansion of our store estate, the Board is confident of making further progress in the second half and meeting full year expectations.
“In short, more customers are enjoying our delicious egg-free cakes, and more of our fantastic franchisees are selling it to them.”