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How Lola’s Cupcakes Cut Costs 50% and Scored 1M POS Sales with Shopify

6/25/2024
Lola's Cupcakes
Victoria Jossel & Romy Lewis
Lola's Cupcakes
www.lolascupcakes.com
Bath, United KingdomFounded 2006
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Monthly Revenue
Undisclosed
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Founders
Victoria Jossel & Romy Lewis
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Employees
Undisclosed
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Business Description

Lola's Cupcakes is a UK-based bakery operating over 40 retail stores and collection lockers for click-and-collect. Specialising in gourmet cupcakes and online sales since 2011, they pride themselves on a seamless in-store and digital experience backed by a thriving loyalty program.
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Executive Summary

Lola’s Cupcakes, founded in 2006 in Bath, UK, grew from a two-friend bakery to a 40-location brand by 2011 and became an early online cupcake seller. Facing high custom development costs and fragmented systems, they replatformed to Shopify in 2019—cutting total site ownership costs by half, hitting one million POS transactions within a year, and adding over 10,000 loyalty members.
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Case Study Content

Background

Lola’s Cupcakes began in 2006 when Victoria Jossel and Romy Lewis turned their love of baking into a small Bath shop. They opened additional locations and, in 2011, became one of the first bakeries to sell cupcakes online. Despite growing demand, their custom-built website and point-of-sale tools drained tens of thousands each month and slowed daily operations.

Challenges

Running separate systems for online sales and in-store checkouts created IT complexity. Loyalty rewards couldn’t sync between channels, reporting took hours of manual work, and the team struggled to manage spikes in traffic during Valentine’s Day and special events. They needed a unified solution to reduce costs, improve performance, and capture customer data in real time.

Solution

In 2019, Lola’s Cupcakes migrated both its online store and retail registers to Shopify and Shopify POS. The rollout was swift—one store went live within days, and the rest followed in weeks. By integratingsmile.iofor loyalty, every purchase, whether made online or in-store, automatically created or updated customer wallets. The shop’s marketing tools like Mailchimp and Campaign Monitor received real-time data feeds, turning every sale into a potential email subscriber.

To meet food-label regulations, they installed Apicbase from the Shopify App Store. It generates ingredient and calorie labels in seconds, so staff can print compliant stickers on demand. Central inventory management meant stock levels across 40 locations synced instantly, cutting forecasting errors and wasted resources.

Results

By consolidating hosting and development on Shopify, they reduced monthly operating costs by over 50%. In under a year, customers made more than one million purchases via Shopify POS. The Lola’s Love Club loyalty program added over 10,000 new members. With unified reporting dashboards, the team spends minutes analyzing sales instead of piecing spreadsheets together.

Future Outlook

Lola’s Cupcakes plans to launch subscription boxes for regular fans and expand internationally through franchises using Shopify Markets. They continue exploring Shopify’s ecosystem for features like multi-currency pricing and advanced analytics to support growth.

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Key Takeaways

  • 1Migrating to Shopify and Shopify POS slashed Lola’s Cupcakes’ total web, hosting, and development costs by over 50% per month.
  • 2Integrating smile.io with Shopify created a seamless loyalty program that enrolled 10,000+ new members across online and in-store channels.
  • 3Rolling out Shopify POS across 40 UK locations generated more than one million transactions in under a year, proving the system’s scalability.
  • 4Centralized product and inventory management eliminated manual database comparisons, reducing errors and improving stock forecasting.
  • 5Using Apicbase from the Shopify App Store automated nutritional label printing, ensuring compliance with food business regulations.
  • 6Real-time sync with Mailchimp and Campaign Monitor turned every sale into a marketing opportunity, boosting subscriber lists without extra work.
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Key Facts

Decrease in Hosting and Development Costs
50%
Purchases via Shopify POS
1M+
New Loyalty Members
10,000+
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Tools & Technologies Used

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How to Replicate This Success

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Disclaimer: Some data in these case studies may be inaccurate or out of date. In certain cases, AI-generated content is used.