bake - September 2012 - 34

number might sound low, it is well above other sites, such as www. Alice.com and www.Peapod.com. “Food marketers have a huge opportunity to connect directly with tech-savvy consumers like never before,” says Darren Seifer, NPD food and beverage analyst. “With a click of the ﬁnger on a
The ﬁrst product from Cakegirls is a cupcake stand that is available in two colors.

stand is picked up. Deposit fees cover the cost of the stand should it be damaged, and will be returned to the customer in the manner they were paid upon the return of the stands, minus any late charges or a cleaning fee of $5 if the stand is not returned clean. In Chicago, Roeser’s Party Palace is the perfect complement to Roeser’s Bakery, providing a onestop shop for party planners looking for everything from the event cake to the napkins. Customers can choose from more than 100 party themes, plus latex and mylar balloons, piñatas, party activities, favors, invitations, decorations and more. Roeser’s Party Palace is located right next door to Roeser’s Bakery, so customers can pick up everything they need at a central location. Keep an eye on proﬁts Still, the expansion of retailers like Party City and the rising popularity of Internet-based party supply companies are cutting into the proﬁts that retail bakeries can earn. Some have cut back their party room supplies because of this. The larger challenge for retail bakeries like Merritt’s Bakery in Tulsa, OK, is to ensure every aspect of their business is proﬁtable and, if not, make a change. “With the swelling of the blog sites and the Cricut cutter, I don’t think a full-line retail bakery can take in enough proﬁt to make it in that (party supply) ﬁeld,” says Bobbie Merritt of Merritt’s Bakery. “It just takes too much labor, and the market is ﬂooded with websites that will do the same thing with no personal attendant that is on the clock for every minute of conversation. You cannot even imagine how long it takes to just take a cake order now. It’s getting to be a real problem.” Merritt says she believes the one critical area that

smartphone app or mouse, consumers are responding to marketing communications whether they’re downloading coupons and recipes or being loyal to a name brand.” Will consumers pay up? What Cakegirls is doing can be viewed as the next evolution for bakery owners who want to bolster their position in the consumer marketplace as leading experts in the bakery ﬁeld. The question remains: Will consumers pay more for a branded experience? The signiﬁcance is that consumers maintain the majority of control over the special event itself (which they prefer), while the “curator” steps in, as needed, to ensure all the right products are in place and the event is professional. And, by the way, the curator sells the customer many of the products for the parties. It is possible that this business model could be more proﬁtable than traditional catering where you provide the service, but the customer pays for the food, not the extras. In short, the Cakegirls model would be akin to hiring a wedding planner who also designs the bridal party’s wedding grown and bridesmaids’ dresses. The traditional model for catering involves selling food products from a set menu and charging set prices for setup, delivery, rental and any other catering charges. A number of innovative retail bakeries have branched out well beyond the norm. Cake Nouveau in Ann Arbor, MI, not only specializes in producing one-ofa-kind custom cakes for weddings and other events, but also offers rentals of cake and cupcake stands. Cake Nouveau offers a limited number of cake and cupcake stands, and stand rental includes a daily rate and a deposit fee that must be paid when the

retail bakeries need to focus is to make “true art” in every cake. “Unfortunately, with the skyrocketing prices of supplies, not to mention all insurances, both for the business and the employees, all retail bakeries have had to increase their prices to a very uncomfortable level,” she says. “The good news is that these young mothers have no idea how to bake or cook, even with the help of the Food Network.”

34 < SEP 2012 | bakemag.com

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bake - September 2012

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