How to Run a Successful Cake Shed for Your Home Baking Business
Starting Up And Running A Cake Sheds, Have You Thought About One? Fancy Running One?
Have you heard of Cake Sheds?
If you own a small cake business and are looking for an innovative way to sell all your delicious bakes, a cake hut could be a brilliant solution. A self-serving cake hut is a charming, honesty-box-style stand filled with fresh cakes and bakes daily, allowing your customers to pick up treats at their convenience. But is this business model right for you? Let’s explore the benefits, challenges, and key considerations for setting up and running your very own cake hut.
Why Start a Cake Shed?
A cake shed is an excellent way to expand your business without the high overhead costs of running a full bakery or café. If you already bake from home or have a small shop, this setup allows you to reach more customers with minimal additional effort. Here are some key benefits:
1. Low-Cost Expansion
Unlike renting a commercial space, a cake hut is a low-investment way to grow your brand. A simple wooden hut or converted shed in a well-trafficked area near your home or business can become a charming sales point.
2. Convenience for Customers
A self-service cake hut means customers can pick up treats whenever suits them, even outside typical bakery hours. This flexibility can attract more buyers, especially busy professionals and families.
3. Passive Sales
Once set up, a cake hut requires minimal ongoing effort. You stock it with fresh bakes, check on it throughout the day, and let customers do the rest.
4. Local Community Engagement
People love the novelty of honesty-box setups. A cake hut fosters trust within the community and builds loyalty among customers who appreciate the unique experience.
Challenges to Consider:
While the idea of a self-serving cake shed is wonderful, it does come with potential downsides. Here’s what to keep in mind:
1. Honesty & Trust Issues
One of the biggest concerns is whether customers will actually pay for their cakes. While many will respect the honesty box system, there’s always a risk of theft or non-payment.
2. Weatherproofing & Food Safety
Cakes and bakes need to be stored properly to maintain freshness and prevent spoilage. Your hut must be well-ventilated and temperature-controlled, particularly in summer months.
3. Security Measures
To prevent theft or vandalism, consider installing CCTV, motion sensor lighting, or a secure payment system such as a contactless card reader instead of a cash honesty box.
4. Restocking & Maintenance
You’ll need to regularly check and restock the hut, ensuring freshness and variety. Cleaning and maintaining the hut is also essential to keep it appealing and hygienic.
REMEMBER: Add your branding to your hut, so paint it the same colours and add your logo!
How To Make Your Cake Shed A Success
If you’re ready to take the plunge, here are some key steps to setting up a thriving cake hut:
1. Choose the Perfect Location
Position your hut where there’s high foot traffic—near your home, at a farm shop, or in a village hub. Ensure it’s easy to access and visible to passersby.
2. Design an Attractive Hut
A rustic, eye-catching setup with clear signage and a welcoming display will entice more customers. Label items with descriptions and prices for a smooth purchasing experience.
3. Set Up a Secure Payment System
While an honesty box is charming, adding a contactless card reader (like SumUp or Square) ensures easy payments and reduces cash handling risks.
4. Keep Your Menu Fresh and Seasonal
Offer a mix of bestsellers and seasonal specials to keep customers coming back. Think cupcakes, brownies, traybakes, and even limited-edition holiday treats.
5. Use Social Media for Promotion
Keep customers engaged by updating social media with daily stock updates, special offers, and reminders to visit your hut.
6. Monitor and Improve
Track what sells well, get customer feedback, and adjust your offerings accordingly. Be prepared to make changes based on demand and security concerns.
What Could You Sell From a cake shed?
Cupcakes & Cakes- Classic cupcakes of a variety of flavours. Seasonal/holiday-themed cupcakes
Tray bakes & Bars - Brownies, Flapjacks Millionaire’s shortbread. Rocky Road, Tiffin. slices, lemon bars etc
Cookies & Biscuits- Chocolate chip cookies, Shortbread biscuits, Oatmeal, Gingerbread biscuits
Mini Loaves & Muffins- Banana bread mini loaves, Blueberry muffins, Apple and cinnamon muffins
Other Treats -Cake jars, Scones, Macarons, Cake Pops
Be mindful of the weather and temperatures, placing you cake shed in the shade to keep your bakes safe from spoiling and being unsafe to your customers.
Labelling and Allergy Information:
When you're selling products from a cake shed, it’s really important to follow the correct labelling and packaging rules to protect both you and your customers. Even if your cakes aren’t pre-packed, you are legally required to provide clear allergen information for the 14 main allergens (such as milk, eggs, gluten, and nuts). This can be done with clear signage or individual labels. If you pre-pack your cakes (for example, boxing them up in advance), you will need to include a full ingredient list, highlighting any allergens in bold, and ideally a best before or use by date. Packaging must be food-safe and suitable for the type of product you’re selling, helping to keep your bakes fresh, safe, and professional-looking. Following these rules not only builds trust with your customers but also keeps your business legally compliant and shows that you truly care about their safety and experience. 🍰✨
Here’s a simple and clear example you can include in your blog post to show what a label might look like.
Example Label for a Pre-Packaged Cupcake:
Product: Vanilla Cupcake with Buttercream Frosting
Ingredients: Self-raising flour (wheat), sugar, butter (milk), eggs, vanilla extract, baking powder, salt.
Allergens: Contains wheat, milk, and eggs.
Best Before: 28/04/2025
Made in a kitchen that handles: nuts, soy, gluten, dairy, and eggs.
Top Tips:
Highlight allergens in bold to make them easy to spot.
Keep it simple and easy to read.
If you’re not pre-packing but selling fresh from your cake shed, clear allergen signage must still be available for customers to see
Where can you get a cake shed?
Check out this cute one which is a perfect size That most people running a cake shed recommend and you can paint it to match your brand!
Security & Honesty
You might want to think about adding a security camera to your Cake Hut can help protect your business from theft and vandalism while ensuring customers feel safe. A visible camera might just deter dishonest behavior and provide you with a little peace of mind, allowing you to monitor transactions and hut activity remotely. This simple security measure can help you safeguard your investment and maintain trust within the community. You could place one above your cake hut and one inside with the money box goes.
Considering the weather elements and product safety:
When running a cake shed, it’s so important to think carefully about how you’ll protect your bakes from the elements to keep them fresh, safe, and delicious for your customers.
☀️ Sun and heat can quickly spoil cakes, melt decorations, and even cause food safety issues, so always position your cake shed in a shaded or partially shaded spot where possible.
During warmer months, consider using fans, insulation, or even small portable coolers inside the shed to help maintain a stable, cool environment.
Always keep your cakes covered and display them out of direct sunlight, and avoid leaving any perishable items (like cream-filled cakes) out for long periods. Taking these extra precautions not only protects your beautiful bakes but also shows customers that you genuinely care about their safety and the quality of what you’re offering. 🌸🍰
Cake Shed Safety Checklist ✅
🏡 Place your cake shed in a shaded or partially shaded area.
🌬️ Use fans or portable coolers in warm weather to keep the temperature stable.
☀️ Keep cakes out of direct sunlight at all times.
🧊 Consider insulating your shed to protect against extreme temperatures.
🎂 Cover all cakes and baked goods securely.
⏰ Avoid displaying perishable items like cream-filled cakes for long periods.
🔍 Regularly check the temperature inside the shed, especially during hot spells.
🧼 Keep your shed clean, tidy, and free from pests.
📝 Add a small sign reminding customers that you care about freshness and safety!
❤️ Always prioritise the quality and safety of your bakes for happy, returning customers.
What Are The Legal Requirements for Running a Home Baking Cake Shed
1. Register as a Food Business
You must register your home-based food business with your local council at least 28 days before you start selling. It’s free, and the council may carry out a food hygiene inspection. This registration applies whether you're selling from your kitchen, cake hut, or both.
2. Food Hygiene Rating and Training
Even if you’re baking at home, you must follow strict food hygiene practices. Completing a Level 2 Food Hygiene and Safety Certificate is highly recommended (and often expected) — it shows you understand safe food handling, storage, and preparation.
3. Food Safety Management System (Safer Food, Better Business)
You must have a simple food safety system in place to show how you manage risks. The UK Food Standards Agency offers a free toolkit called “Safer Food, Better Business” you can use to record everything.
4. Insurance
You’ll need Public Liability Insurance to protect yourself if someone were to get ill, injured, or suffer loss because of your product. It’s also wise to have Product Liability Insurance and Business Contents Insurance for extra protection.
5. Labelling and Allergen Information
You are legally required to provide clear information about the 14 main allergens (like gluten, nuts, dairy, etc.) if your cakes contain them — whether you sell pre-packed or non-prepacked (fresh) goods. If offering cakes at a self-serve hut, a visible allergen notice is a must.
6. Planning Permission (Sometimes!)
Usually, you don’t need planning permission for a small cake hut, but if it’s a permanent structure, or if you expect a lot of customer traffic, it’s worth checking with your local council to be sure.
7. Risk Assessment
If customers are coming onto your property (even briefly), you should carry out a simple risk assessment to make sure the area is safe — clear signage, trip hazards removed, hut safely installed, etc.
8. Good Practice: Labelling Your Cakes
Even if it's not strictly required for non-prepacked cakes, it’s good practice to label cakes with ingredients and a “best before” or “use by” date. It makes you look professional and keeps customers informed.
Quick Summary ✅
Register with your local council
Complete food hygiene training
Set up a simple food safety system
Get appropriate insurance
Provide allergen information
Check if planning permission is needed
Do a simple risk assessment
Label your cakes clearly whenever possible
Payment
What about payments that are safe & easy ways to take payments for your cake hut? Lets look at your options:
1. Cash Tin with a Slot 🏡💰
A classic, simple approach—just attach a secure tin with a slot where customers can drop their cash payments.
✅ For:
✔ Super easy to set up—just a sturdy, lockable box with a narrow slot.
✔ Perfect for customers who prefer cash over digital payments.
✔ Works even in areas with no mobile signal.
❌ Against:
✖ No way to track who has paid unless you check regularly.
✖ Risk of theft if not secured properly.
✖ Need to empty it often to avoid leaving too much cash inside.
💡 Tip: Fix it securely to a wall or table and keep it as discreet as possible!
2. QR Code for Digital Payments 📱💳
A simple QR code linked to a payment app (PayPal, Apple Pay, SumUp, Zettle, or a banking app) lets customers scan and pay instantly.
✅ For:
✔ No need to handle cash—safe and hygienic.
✔ Automatically records payments for easy tracking.
✔ Quick and convenient for customers using mobile banking or payment apps.
❌ Against:
✖ Requires customers to have a smartphone and internet connection.
✖ No way to check immediately if someone has actually paid.
✖ Might need multiple QR codes for different payment options.
💡 Tip: Print your QR code on weatherproof signage and test it to ensure it scans properly!
3. Contactless Card Payment Machine 💳✨
A tap-and-go contactless card reader allows customers to pay quickly and easily.
✅ For:
✔ Super convenient—just tap and pay!
✔ Secure, with instant payment verification.
✔ No cash involved, reducing risk of theft.
❌ Against:
✖ Needs to be powered (battery or plugged in).
✖ Requires WiFi or mobile data to process transactions.
✖ Initial cost of purchasing a reliable payment terminal.
💡 Tip: Use a weatherproof, solar-powered, or battery-operated terminal for a hassle-free setup!
Which Payment Option is Best for Your Cake Shed? 🍰🏡
The best option depends on where your hut is located, how tech-savvy your customers are, and how much security you need. Many cake hut owners use a mix of methods—for example, a cash tin AND a QR code to give customers more choice.
No matter which method you choose, make it easy, clear, and secure so your customers can pay hassle-free while enjoying your delicious cakes!
Advertising your Cake shed to gain customers
Once you have built and designed your gorgeous Cake Shed how are you going to find the customers to visit?
🧁Focus on creating a warm, inviting vibe both in-person and online on your social media and local groups.
🧁Then build excitement about your new Cake shed with a count down top the opening. Could you offer an opening discount to entice people initially?
🧁Use energy catching signs outside your home to entice passing trade so you need to be somewhere with a good foot fall.
🧁Encourage customers to tag you when they visit and post their purchases—it’s free, authentic advertising!
🧁 You can also create special offers, such as loyalty cards, seasonal treats, or “limited edition” bakes to keep people coming back.
This is a fantastic way to increase profit in your home run baking business, doing what you already do! You only have to type in ‘Cake Huts’ on social media to see how some people are making a great income from running one!
Would you set up a cake hut? 🍰 Let me know in the comments!
🧁 A cake hut can be a fantastic way to expand your small baking business with relatively low risk and high community appeal. While there are challenges—mainly trust and security—you can take steps to mitigate risks and make it a profitable, enjoyable venture.
Would you start a cake hut? If you already run one, I would love to hear your experiences! Share your thoughts on the Cake Hut Instagram post !
