Couple places The Cake Shoppe on the market
Everod and Shereen Davis, owners of The Cake Shoppe in Liguanea, Kingston are selling the business as a going concern after seven years of ownership.
Everod Davis says he and his wife, both of whom are fully employed elsewhere, have had little time to focus on the business.
Staffed by four, the small bakery supplies pastries and other products for pharmacies, gas station convenience stores, and makes cakes to order.
The Cake Shoppe retails Devon House ice cream and a range of pastries and cakes including chocolate cakes, fudges, cheese cakes, black forest cakes, bread and potato puddings, rock cakes, donuts plain cakes and photo frost which is a method of scanning and placing images and photographs on cakes.
The Davises are selling the business for $5 million, and are hoping to attract the type of buyer who would want to make it into a bigger market player.
"The business is doing okay, but as the dollar slid, input products got more expensive," said Everod.
"The business needed more focus and we were not able to provide that. Electricity prices were always heading the wrong way; the high energy cost was the biggest [challenge]," he said.
The asking price is inclusive of all equipment including freezers, cake stands and patty warmers.
"It's just to cover the equipment," Everod said.
The Davises acquired The Cake Shoppe in 2007 through holding company Emes Enterprises Limited, which, according to Everod, is in the business of business management.
"Management principles are really the same, although each business will have its peculiarities," he said.
Before their foray into the pastry market, the couple ran a business that retailed cooking gas or LPG. They exited after contractual obligations expired.
The couple's reason for selling the bakery lies in their full-time careers.
"I am now in Montego Bay working full time," Everod said, explaining that he is the business development manager for a company called Anchor Cement in western Jamaica. Shereen is also employed full-time to a company in Kingston.
However, they are already looking around for another investment opportunity, but noted that they do not have a prospect in sight.
"Bill Gates advises that you have more than one source of income ... I am looking at the landscape, but there is nothing yet," Everod said.
For now, "I am going to be concentrating on construction for a while," he said, referring to his current job.