Online seller triples sales with physical cake shop

CEBU, Philippines - What used to be just an online business has evolved to be a twofold enterprise with the opening of a physical shop, thus fueling its notable growth  and catering to the increasing demand for cupcakes and cakes.

After five years of doing her business online, entrepreneur Arvy Lopez finally opened a physical shop of The Cupcake Theory Gourmet Cupcakes and Hand-carved Cakes situated at Juana Osmeña Street, Capitol Site, Cebu City.

Prior to becoming a budding businesswoman, Lopez was a former journalist of one of the local news outfits in Cebu. She also worked as a customer service representative of a business process outsourcing company.  

She said in an interview that having a shop makes it convenient for customers to just walk in the shop and order the cake they want to be made.

She added that prospect buyers need not order cupcakes in advance.

“I'm very happy that customers can now get their favorite cupcake flavors without pre ordering them. Instead, they can just go to the shop and get a cupcake or two or get a whole box! The shop can actually accommodate more than 15 people. We want it to be quaint and homey and comfortable,” she continued.

The Cupcake Theory also caters to customized cake orders in accordance to the buyer’s needs and preferences.

Lopez considered putting up a physical cake studio as one of her achievements in the business since it paves the way for people to check her work personally.

The shop, she said, added to the visibility of her business to her target market and made her sales “more than tripled”.

“The demand is overwhelming. There's such a huge market for this even with all the competition.  Since we opened, our cupcakes get sold out everyday It's very important for me for people to be able to walk in the shop and check my work personally. Whatever the reason, having the physical shop made a huge difference,” she said.

Even with the physical studio, she still considers the Internet as one of her important marketing tools in the business.

“When I started, I utilized every social network for my cake and cupcake photos.  I wouldn't have gained attention and awareness if it weren't for it. I've also relied heavily on word of mouth marketing. Keeping customers is easier than looking for new ones so I value my loyal customers tremendously,” she cited.

Lopez began to post pictures of her work in social networking sites starting with Multiply last January 2009 and has now penetrated Facebook and Instagram that she updates daily.

With varied options made available, customers could either visit her physical shop or communicate through email, SMS or social networking sites.

Lopez started to pursue her passion on molding, painting and drawing last 2008 when she ventured into the cupcake business, revealing her creative side.

“I'm very hands on with everything.  I personally work on all the customized cake and cupcake orders and I’m very happy doing it. When I mold figures, I think I have the best job in the world.  Pulling all-nighters for some cakes are not unusual.  It can be tedious and frustrating if the passion isn't there.  I'm very lucky to be doing this for a living,” she stated.

Since her mother is also into baking and cooking, Lopez didn’t have to spend much on equipment but only invested on the latest tools for cake making.

Lopez bakes an average of 10 to 12 dozens for walk-in customers alone who comprise 40% of the total market share.

During holidays, The Cupcake Theory sells around 15 to 18 dozens daily.

The red velvet cupcakes named Sultry, Sexy, Red has been the trademark and bestseller of The Cupcake Theory.  Other cupcake flavors include chocolate addiction, mint-to-be, cookies and cream, and vanilla happy.

Cupcakes are priced at P58 for a solo box, P208 for a box of 4, P308 for the box of 6 and P598 for a dozen of cupcakes.

The customized cake and cupcake prices, on the other hand, depend on the design required by the customer.

Since cake making requires time especially for its intricate designs, customers are required to book their orders in advance for their customized cakes.

Lopez further revealed that they are eyeing to open a mall shop soon and are planning to come up with new cupcake flavors for the business’ expansion and innovation programs.

“We are a customized cakes shop and studio. That is the main point of what we do and why I put up this business in the first place.  We're all about color, shapes, design and art and the crazier your cake gets, the happier we are in making it,” Lopez concluded.  (FREEMAN)