Made in Great Britain: Cupcake Delivery Service Rachael’s Kitchen
Rachael Halstead of cupcake delivery service Rachael’s Kitchen talks about the ups and downs of running a successful bakery.
What does your business offer?
We are the UK’s leading cupcake delivery service, offering a selection of nearly 40 cupcake varieties, including personalized options and next-day delivery across the UK.
How did your business start?
I founded Rachael’s Kitchen in 2009. It was an exciting time to be building an e-commerce business, as our shopping habits and consumer expectations were changing. I was living in London and traveling for work in my mid-twenties. I spent much of my free time searching for good food. I spent weekends on Portobello Road, Covent Garden, and Borough Market, searching for delicious treats and trying new dishes. Cupcakes have always been my favorite foods. I love giving gifts and taking the time to choose the perfect present for friends and family—it’s an expression of love when you select something thoughtful and personal for the recipient. Back then, I thought how great it would be to be able to send beautiful gift boxes of cupcakes to friends I can’t easily see, or when I can’t make a special occasion. That was my lightbulb moment—not because I wanted to build a cupcake delivery business, but because there must be more people like me who love the ritual of gift-giving, and I wanted to make it happen as best as I could.
What is your background?
I originally trained as an accountant and, after graduating, began an academic career. I really enjoyed teaching, but after a few years, I wanted to experience more practical work than theory. I worked for a small strategy consultancy in London for a few years, which gave me great insight into the business, and I had a great founder as a role model to learn from. Through her work, I gained experience and confidence. I loved the marketing aspect and maintaining customer relationships. That’s when I came up with the idea of starting the company. My background in numbers and experience in the small business sector were enormously helpful.
What sets you apart from the competition?
We have two revenue streams: our direct customers who order a gift box of cupcakes online for delivery, and our B2B corporate clients. Our corporate business accounts for around 65% of our revenue, and we position ourselves as the only cupcake marketing agency. For corporate clients, we create cupcakes for events and trade shows, product launches, engagement campaigns, sales pitches, corporate parties, and in-store promotions. Cupcakes are a marketing tool, and ROI is crucial. We take great care to ensure that the cupcakes we send are on-brand, attractively presented, and reflect the client’s brand integrity. We help our clients engage with their target audience through social channels and maximize the impact of the campaign.
How do you get the word out about your business?
We’re fortunate to have many repeat customers and referrals. It’s great to see so many recipients gift our cakes. As we grow our business, we place great importance on strengthening our brand and building our reputation.
How has business been during the COVID-19 pandemic?
We’ve been incredibly lucky. We were very busy and grew significantly. At the beginning of the first lockdown, our entire corporate client base disappeared overnight, but our B2C business flourished rapidly. It was an emotional time for everyone, and I’ve never felt more connected and grateful to our customers. Phone conversations were more personal, gifts were filled with so much emotion, and I think this changed society as a whole. We had major issues with supply and delivery networks. It was a tough and humbling time.
I had my third baby last September and worked 60 hours a week until he was born—we were all working hard and grateful to have a business and a job. In the last six months, things have changed again. We’re still busier than before the coronavirus pandemic and are excited about the return of our B2B customers.
What's the hardest part about running a business?
I’ve had to grow with the company and work on my leadership style. Before I had a family, my leadership strategy was to lead by example, be part of the team, especially when we were challenged, and feel a genuine connection with my colleagues during difficult times. As we’ve grown, it’s no longer possible to always be first in and last out, always volunteering for every task. I think that’s shaped the culture, and I’m overwhelmed by the loyalty, strength, and camaraderie of my team. But that’s evolved now. Some of my team members have to protect my time a bit and step away from day-to-day operations. I love working on the tools and designing growth strategies. and making plans for the future, but it can be very time-consuming to be in both camps.
Did you receive any financial support for your business?
My father once lent me £300 from his pension to pay the rent on the commercial unit – that was in the early days, and wow, money was tight! Seriously, we were able to continue operating during the COVID lockdown and were among the lucky ones.
What were the biggest challenges you faced?
In the early years, it was mainly about finding delivery partners who could deliver fragile products quickly and in perfect condition. Logistics infrastructure and service agreements have evolved enormously since I entered e-commerce. The COVID experience may have changed our purchasing habits forever, and I was lucky enough to be in the right place at the right time.
What has been your best decision so far?
Probably focusing on our corporate clients. It’s great not to put all my eggs in one basket, and I’m grateful that we’re reasonably diversified—our B2B business is the natural marriage of my corporate experience with my understanding of effective marketing—all through the medium of cake! I’m proud of our service and that we’ve invested in each campaign for maximum impact and excellent value.
I rely heavily on my gut feeling. Whether something feels right or wrong, I rely primarily on my gut feeling. I enjoy taking risks (I love betting or poker), but I’m also very careful with money. I find it a strange mix to be risk-averse and loss-averse at the same time. In some ways, that’s not a bad profile for a small business owner, but when I regret a decision, it’s usually because my cautious side scared me away.
If you could look back and change one thing, what would it be? That’s a difficult question, since all the mishaps and hard-learned lessons have made us who we are today. I’ve had to draw my own conclusions sometimes, and that’s made me a better leader.
Conclusion: The Sweet Success of Rachael's Kitchen
Rachael Halstead’s journey from accountant and academic to founder of one of the UK’s leading cupcake delivery services is a testament to entrepreneurial passion, resilience, and adaptability. What began as a simple love of cupcakes and thoughtful gifts has grown into a thriving business serving both private customers and prestigious corporate clients.
Through personal commitment—both emotional and financial—Rachael has built more than just a bakery—she has created a brand that delivers joy, connection, and marketing value through handcrafted cupcakes. Despite initial logistical challenges, the impact of the COVID-19 pandemic, and the changing demands of leadership, Rachael has led her business with heart, intuition, and strategic clarity.
Rachael’s Kitchen isn’t just about cupcakes; it’s about celebrating milestones, nurturing relationships, and turning everyday moments into something unforgettable. With a loyal customer base, a growing B2B presence, and a passionate team behind her, Rachael continues to build a delicious legacy—one box of cupcakes at a time.