Planet Cake is trading as usual, despite facing administration earlier in the year.
Paris Cutler, the entrepreneur behind the company, has retained part ownership of the company along with two other private investors and has confirmed suppliers and staff are paid-up.
According to Paris, a team of financial advisors have been brought in, so she can focus on re-establishing the brand.
“The market has changed completely in the past few years and while we were hoping it would go back to being very lucrative – where people would pay extra for artisan products – this is simply not going to be the case moving forwards,” Paris told Australian Baking Business.
“Instead of waiting for the market to change, we have been proactive and revised our products. To be successful today, we’ve realised Planet Cake has to operate on much smaller margins than ever before. And to do this properly, we have engaged the help of financial experts who work with almost-scientific pricing mechanisms.”
The company has also changed its strategy.
“We used to be all about growth. Today however, we’ve gone back to the idea of being an artisan company. We’re working on re-establishing recognition of the brand as offering specialist cakes at the highest level,” Paris said.
“The same goes for the training side of the business. We now focus on offering really high-level courses at good price points. It’s a tricky combination, but it must be resonating with international pastry chefs because Planet Cake has expanded its teaching arm into the UK, New Zealand and Europe.
“With the revised business strategy, Paris is confident the business will grow back into financial health.
“The Planet Cake reality television show has hugely exposed the brand internationally and surprisingly, we are garnering a lot of interest from China where decorating lessons are really taking off,” Paris said.
The Satin Fine Foods ambassador also acknowledged there is a huge market to explore in Europe.
“Countries that were previously repulsed by fondant, such as France and Germany, are now expanding beyond traditional soft cakes into fondant cakes and cupcakes,” she said.
“The Planet Cake television show is also about to launch in Latin America. There is huge potential in this region of the world because cake decorating is absolutely massive.
Paris and her marketing team will also concentrate on social networking and customer education to ensure their position in the market remains secure.
“I feel very lucky to have new investors and still be able to maintain my client base. Planet Cake didn’t lose a single customer during this period of financial uncertainty and this is a testament to brand loyalty in the industry in general.”