Cupcake Business Slashes Costs by £20,000 Annually Using AI

A UK-based cupcake business has reported annual savings of £20,000 by implementing an AI tool to automate previously manual tasks. Candy's Cupcakes, founded by Candice Bannister in 2011 and expanded nationwide in 2019, has seen substantial growth, selling up to 3,000 cupcakes and 500 cake jars daily.

Initially handling order processing, gift tag creation, and label printing manually, the business identified an opportunity to streamline these operations when an employee departed. The company now uses Claude, an AI tool from US firm Anthropic, for a monthly subscription fee of £20.

Oliver Bannister, Candice's husband and business partner, explained that the AI now handles tasks that previously required an employee to print orders, gift tags, and various labels. The AI also automates the downloading, cropping, and printing of images for cupcake toppers. This automation has significantly reduced the time spent on these processes.

Before AI integration, the daily production requirements were calculated by hand each morning. Oliver Bannister developed a tool using Claude that automates these calculations, including order numbers, flavor breakdowns, box sizes, and cake jar quantities. This has resulted in a "one-button" order label printing system that the company estimates saves 86 hours of labor per month.

The implementation of AI has also improved efficiency in the kitchen, with faster box labeling, clearer order readability, and fewer mistakes. The need for manually peeling and sticking gift tags has been eliminated, freeing up staff time to focus on larger branded orders and customer service.

While the business has not reduced staff due to AI adoption, the cost savings are estimated at £20,000 annually. The company maintains its commitment to baking all products by hand. The business has experienced significant turnover growth, reaching £1.4 million in 2024 and £2 million in 2025, with TikTok Shop contributing £782,000 to turnover in 2025.

Julie Fisher, UK chief executive of Simply Business, commented on the trend, noting that small business owners are increasingly adopting AI for content creation and problem-solving. She highlighted AI's potential to alleviate administrative and repetitive tasks, allowing small business owners to focus on core competencies and their human expertise.