Plant-based products keep cake business profitable in tough times

A cake shop on Auckland’s Dominion Road is withstanding the hospitality crunch through its vegan offerings and people’s ongoing need to celebrate.

Despite the cost-of-living crisis, Neat Cakes is doing “great”, selling plant-based, made-to-order cakes and ready-to-eat sweet treats.

“The cakes themselves are really cheap to make because there’s no butter,” says owner Jack Orsbourn.

“I’m not struggling with those economic increases in really basic ingredients, which others are having to offload to the customer.”

In the last few years, many bakers have battled considerable price increases to butter and shortages of eggs.

Earlier this year, Jack expanded Neat Cakes from a private cake studio to a cake and coffee shop open three days a week.

Being plant-based, the business has a lot of vegan customers but they’re no longer the majority.

She says cakes remain a popular purchase during tough economic times because people want to celebrate the little things in life.

“You don’t need a big reason to celebrate. Having a little sweet treat in your day can be the thing that turns your day around or can be the reason you get out of the house.”

The cost of living for the average Kiwi household increased by 3 per cent in 2024, according to Statistics NZ.

Ready-to-eat foods increased in price by 2.5 per cent

Vegan Society of Aotearoa NZ spokesperson Claire Insley says hospitality is hard for everyone at the moment, but vegan bakeries remain resilient around the country.

“People on the whole don’t mind spending a small amount of money, less than $10, on something as a treat for themselves.

“I would imagine the bakeries are doing considerably better than the cafes or restaurants that are having a hard time.”

While some vegan businesses turn to animal product goods to reach a broader consumer base and stay afloat, Jack has never had to introduce non-vegan items at Neat Cakes.

She wants customers to be pleasantly surprised by her products’ plant-based recipes.

“The product speaks for itself. Once you try it, it’s good. It just happens to be vegan.”

Since opening the shop to the public, sampling the products has become easier.

“I love having customers in the shop. It brings a nice different energy into the space and people get to try more things.

“I could have stayed online and been just as successful but for me the key is community and that means welcoming community into your space.”