Take a look at your local high street. Apart from a few barbers, bookies or American candy shops, you will see many boarded up windows and ‘everything must go’ signs.
Bricks and mortar retailers are closing in droves, with an average of 38 stores across the UK closing each day.
There is one exception to this, and it goes from strength to strength: Cake Box.
Founded in 2008 by Sukh Chamdal and Pardip Dass, the bakery brand sells (as the name suggests) all kinds of cakes. Is it a unique selling point? They are egg-free.
Former Indian pastry chef Sukh – who follows a lacto-vegetarian diet, meaning no meat, fish, poultry or eggs – was spotted at the market when his eight-year-old daughter noticed there was egg in the cake and told him: ‘I don’t have that’ .
The 62-year-old then attended a food technology seminar at South Bank University and asked the professor for help to make an eggless cake.
‘Six weeks later, I had a prescription,’ said Sukh Metro. ‘Coincidentally, the shop next to his is also empty. And Cake Box was born.’
As businesses struggle to stay afloat amid high inflation and changing consumer behavior, Cake Box, it seems, is bucking the trend.
In the 16 years since its foundation, the brand has grown from one location to more than 250 across the UK, with kiosks in supermarkets and two to three new stores opening every month.
In addition to the report, the company made a profit of £37.84 million last year, and recently rejected a takeover offer from River Capital, an asset company that also owns The Cheesecake Shop, valued at more than £80 million..
Sukh accuses prospective buyers of ‘materially undervaluing’ the cake box, which is ‘stronger than before’. But it’s all possible for the best, as River Capital has become more faith in the company, still buying in, and now 7% shareholder.
But how did the Cake Box not only survive, but survive the sickly British high streets?
First, it’s the egg – or there isn’t. Since none of the products contain eggs, they are all suitable for those who follow a lacto vegetarian diet, a factor that certainly helped make Cake Box a hit among the million-strong Hindu community.
“We are based on Green Street in Newham, East London – a street that my father was one of the founders of,” says Sukh.
‘Because it is a region with a very high ethnic population, we make the product for the community: by removing the eggs it is suitable for those from the subcontinent, where eggs are considered meat. It’s also halal, because we don’t use animal products.’
But Cake Box counts people from all walks of life as customers, including many who ‘just love the taste’, and Sukh is proud to have ‘brought fresh cream back to the high street after it disappeared 25 years ago.’
Plus, there’s the buying experience: along with advanced ordering, you can click and collect your freshly made cake in person within an hour.
‘We want to be the Amazon of cakes, because even though our lives are very busy,’ says Sukh. ‘And given all these advantages, we are building a fantastic customer base.’
Sukh describes Cake Box as a family, and this has been an integral part of Cake Box’s success over the years. He grew up with the co-founder, Pardip, and considers him a cousin, while his father is also a lifelong friend, coming from the same village in India.
Both of Sukh’s daughters (now grown up) are also franchisees with many stores, and many of the company’s stores are run by relatives of franchise owners who have decided to ‘jump on the bandwagon’ as a result of word of mouth.
As an example of the ‘family values’ that exist throughout the workforce, Sukh recalls: ‘During the pandemic, every staff member from one of the stores caught Covid, so they had no choice but to kill them. But when the other franchisees found out, they sent staff and guarded the store so the public didn’t miss out on the celebration.’
This is one of the reasons why families are at the center of businesses like this – because their merchandise is the focal point for celebrations, commiserations, and other important moments shared between customers and loved ones.
Metro Audience growth editor Anushka Suharu commented: ‘What makes them special is that the cake is the same as the one we had back in India, for many of us who have moved away from our country and our families, the taste brings back a lot. memories and as an ode to home.
‘Usually we would have a big celebration at home and print the birthday girl’s name on the cake and Cake Box allows you to do the same. In addition, they also make cakes and sweets for special occasions like Diwali or Eid.
‘I think this is the biggest factor for success – they understand the importance of family and retain culture for the South Asian diaspora and with each new store, bring us a small and sweet piece from home.’
Speaking of home, retailers are experiencing many lockdowns during the Covid-19 pandemic, increasing sales and profits that others are doing, something Sukh believes is that some people need a lift when they are stuck indoors.
‘When days are dark, when there is conflict, when there is suffering, people want to celebrate,’ he explained. ‘And what we found was that the size of the cake corresponded to the limitations that existed at the time; When there were six people, we sold a lot of cakes, which were six people, and when the ban was lifted, the size of the bread increased.’
But that doesn’t mean there aren’t bumps in the road. In 2021, a malware attack caused some of Cake Box’s customers’ personal data to be compromised, and the following year, founder Pardip Dass resigned from the business after a controversy over the error.
Sukh also made headlines last summer, when it was revealed he was facing criminal charges for allegedly destroying 132 protected trees to build an Essex mansion.
‘There will always be blips in the company,’ said the CEO, adding that the contractor responsible for the latter problem was covered and there was no material impact from the event.
And for customers, the proof is really in the pudding. The company maintains an average score of 4.5* on Trustpilot, with reviewers describing the cakes as ‘stunning and delicious’ and praising the ‘nice and friendly staff’.
‘I am not impressed,’ wrote Manoliu Sumith, while Happy Mum said: ‘As always, the cakes are adored by children and adults alike. Cake Box never disappoints.’
The third, Srivi, added: ‘For me, if it’s a cake, it’s a Cake Box!’
Although wedding cakes (which can be purchased in just two hours) are a consistent staple, birthday cakes remain a top seller for many franchisees – after all, everyone celebrates.
‘There are about 6 million to 8 million people in this country and 365 days a year,’ said Sukh, ‘About 150,000 birthdays to serve every day.’
How to become a Cake Box franchisee?
Kuldeep, 43, is a multi-franchisee of Cake Box along with his wife Sunny. The pair currently have six stores – in Hayes, Hounslow West, Feltham, Staines and 2 in Slough – and plan to acquire three more in the local area with the aim of having 10 by 2025. Here, Kuldeep shares his experience of the business. .
How and why did you decide to become a Cake Box franchisee?
‘In 2010, a family friend told me about an up and coming company called Cake Box and they had heard good things about it. I worked for the local authority at the time and thought about broadening the scope. My parents have had their own business all my life, so I tend to do things independently. I contacted Cake Box and after a chat was invited to the store opening – I went and it snowballed from there.’
What is your customer base and what are your best sellers?
‘Our customer base is normal families who work hard and want a fresh personal cake rather than a packaged item. I have been in this industry for over 11 years and we started with mainly customers who for religious or dietary reasons choose to have a cake without eggs. Today I see customers from all backgrounds who just love the product! We cater to many people and by continuing to grow we have attracted a wider audience.
‘Our best sellers are usually the eight-inch celebration cakes, which come in a variety of flavours, toppings and designs. Also our slices are very popular, they are good value for money and delicious, not to mention how pretty they look!’
What do you like most about working for the company?
‘To sell a product that puts a smile on every person who walks through the door is a rare thing. I am passionate about our brand and products and for the last decade this has never stopped. I think what we did, we did well and I’m proud of that.’
What do you see for the future of your career and Cake Box as a business?
‘Our plan is to continue to grow – as I said, I’m in the process of acquiring a few more sites. I am also involved in product design and really enjoy trying new ideas and designs. I have an amazing team that I like to discuss the design with and how this can be made into reality, what it looks like and how feasible this design is for 250-plus stores. Sometimes they fall but sometimes they sell well!
‘I’m looking forward to this work and helping the business grow and adapt. I’m excited about what the future holds.’
The brand’s rising dominance didn’t last long either. With online sales expected to increase by 16.1% by 2023, this will be a pillar in their growth.
But that doesn’t mean bosses have set high street expansion down the road, setting an ambitious target of opening 400 Cake Box stores in the next few years.
Among the iron Sukh has been on fire for the future are kiosks in train stations and service stations, as well as trying to balance growth with more community help, facilitating franchisee outreach projects like hot kitchens for the homeless and free eyecare clinics.
The company makes a point of putting people first — from customers to employees to the local area — which Sukh believes many businesses get wrong.
“We like to go to less areas and enjoy the place,” said Sukh. ‘This community gives us life and we love to give back.’
Do you have a story to share?
Get in touch via email at MetroLifestyleTeam@Metro.co.uk.
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