North West business briefs: Candy’s Cupcakes; Co-op; Audio Always; Viva; Northern Hospitality; BGF

Manchester-based national bakery, Candy’s Cupcakes, reached a £900,000 turnover in 2023, up 31% from 2022, and aims to break the £1m barrier in the current financial year.

Founder and owner Candice Bannister began making cupcakes and cakes as a hobby from her home kitchen in 2011 and grew a local loyal customer base via social media. Today, Candy’s Cupcakes offers nationwide delivery of its cupcakes, cakes in jars, cakes in boxes, brownies and cookies.

Demand is at a record high – in October alone the cupcake business baked and dispatched a record breaking 31,000 cupcakes. Husband and wife duo, Oliver and Candice, who run the business together, hired eight new members of staff and are currently looking to hire one full-time admin and two part-time TikTok presenters, as the business continues to expand exponentially.

Candy’s Cupcakes has grown the TikTok shop into a highly profitable sales channel. With more than £33,000 in turnover since September on TikTok alone, the online bakery plans to expand further on the app in 2024 to help reach the £1.5m target. This year, the business has already expanded and recently launched the first subscription box service, which allows customers to subscribe and save to a monthly mixture of exclusive cupcakes and treats worth more than £50. This is the first of many new product lines for the year ahead.

Candice Bannister said: “I’d put our success down to a perfect combination of passion and unfaltering ambition.

“This business was born out of my genuine love for baking, and it’s what makes our cakes, cupcakes, and more so delicious. We’ve invested a lot of time into our social channels and this is really paying off so we’re very excited to see where this can go over the next year. It’s a real ‘pinch me’ moment to see those figures and has made the whole team even more ambitious for 2024.”

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Shirine Khoury-Haq

The Manchester-based Co-op, the UK’s largest consumer co-operative, has unveiled further growth plans by building on the momentum of 2023, as it looks to substantially increase the number of members-owners from five million to eight million by 2030, making a difference for members, communities, and wider social issues they face.

This new target follows the release of data, which shows that momentum in Co-op membership continues to grow significantly ahead of expectations. The Co-op now has five million active member owners, up almost 15% on the previous year. There was a 21% increase in members shopping with Co-op during December, demonstrating the value that members place on the benefits they receive and highlighting the wider resonance of member ownership.

This growth aligns with broader growth ambitions across the Co-op’s core businesses – Food, Funerals, Legal and Insurance – aiming to broaden reach and scale and attract, reward and engage member owners.

The Food business is targeting an even greater share of the UK convenience market through omni channel growth, with ambitions to acquire new Co-op stores, more than double the number of new franchise stores, open 400 new Nisa stores, and accelerate share in the quick commerce market to more than 30%. Additionally, the Life Services businesses (Funeralcare, Legal, Insurance), plan to extend and improve the product ranges and bring on board new partners, whilst making membership more integral.

CEO. Shirine Khoury-Haq, said: “Over the past year our underlying financial strength has enabled us to support our colleagues and their communities, through the cost-of-living crisis. By placing our member-owners firmly at the heart of our Co-op, we’ve seen a marked increase in new members joining us and greater engagement from existing members.”

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MediaCity has welcomed news that creative audio business, Audio Always, has expanded its presence within the creative, tech and digital destination.

Its expansion follows a successful year which has seen its client base expand with high profile projects including the chart-topping true crime Original podcast, Carrie Jade Does Not Exist with Sue Perkins, the return of Different with Nicky Campbell for BBC Sounds and a powerful collaboration with its Media City neighbours Fuzzy Duck on a project for Dreams and Shelter.

Paul Fernley, Head of Partnerships at Audio Always, which has launched a new audio studio as part of the expansion, said: “We’re thrilled to be opening a new third studio in the Tomorrow Building at MediaCity, expanding our offering for businesses, broadcasters and talent with a new visual podcast recording studio.

“This space sees us continue our investment in the Northern audio eco-system and has already welcomed clients from MediaCity, Greater Manchester and beyond.”

Rebekah Lloyd Beere, head of ARRIVE, said: “It’s been fantastic to watch and support Audio Always’ journey within MediaCity. They’re a great example of how a start-up has evolved and continued to expand – building their reputation as a leading audio production company, winning awards and gaining national recognition.”

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Tony Garner, centre, and Viva team

North West public relations agency, Viva, has become an Employee Ownership Trust (EOT). The move will sustain the 21-year-old company’s legacy and culture for years to come.

The existing leadership team – which oversaw turnover growth of 26% last year to a new record – will remain in place and maintain day-to-day operational oversight. Under the plan, the majority share of the Lancashire company’s equity transfers into the legal trust on behalf of employees.

Founded by managing director Tony Garner in Rawtenstall in 2002, Viva has grown over the past two decades into an award-winning firm of 13 employees serving high profile clients like BAE Systems, Eurofighter, NHS trusts and local authorities. The agency has built its name on delivering impact-focused storytelling and meaningful results for its clients.

Viva’s leadership feel that the creation of an EOT, often dubbed the John Lewis model, will ensure employees have a clear stake in the collective success and independence of the agency. Tony Garner said: “I believe this step is the right way forward for Viva. We’ve spent the last 20 years establishing our name and I see the EOT as a great way of securing our future. Our employees benefit, and our clients have a clear picture, too.”

Umar Memon, from Jack Ross Chartered Accountants, alongside Steve Walker from Livingstons Solicitors, played a crucial role in facilitating the transition to an EOT. Umar Memon, Managing Partner at Jack Ross, said: “Working with Viva during their transition to an Employee Ownership Trust was a fulfilling experience. Witnessing a company take such a significant step towards employee empowerment and long term sustainability is always rewarding.”

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Mission Mars team: Roy Ellis, Adelaide Winter, Matt Davies

In a year marked by the cost of living crisis and escalating business rates, hospitality vendors in the North have demonstrated growth and resilience over the past year, averaging 7.2% sales growth.

New research conducted by Northern Restaurant & Bar in partnership with CGA by NielsenIQ reveals all Northern England cities saw a growth in sales in managed pubs, bars and restaurants, with an average of 7.2% growth. Newcastle (12.7%) and York (9.2%) lead the uptrend, followed by Sheffield (7.1%), Liverpool (6.8%), Chester (5.6%), Manchester (4.8%), and Leeds (4.4%).

Despite a 2.5% decline in total venue numbers across the British pub, bar, and restaurant sector in the latest year to October, the industry remains dynamic, witnessing an average of 48 new openings per week. This ongoing activity signals a significant level of renewal. Business leaders are also generally optimistic about the prospects of their own business in the next 12 months. This sentiment is stronger in the North, where 59% of leaders expressed confidence in the sector, compared with 51% in the South.

Notably, Northern cities such as Liverpool (-0.8%), Newcastle (-1.2%), and Chester (-1.0%), have proven more resilient than London (-2.2%) and the national average, in terms of the number of outlets. With more than a quarter (26%) of new openings in the North, this resilience is particularly noteworthy against a backdrop of rising energy prices, food and drink inflation, and increased National Living Wages.

Siobhan Thompson, Event Manager for NRB24, said: “The results underscore the strength, resilience, and ambition of Northern hospitality establishments. Despite shared challenges in the sector, operators in cities like Liverpool, Manchester, Sheffield, and Newcastle have demonstrated innovation and optimism in the face of issues such as rising utility prices, food inflation, and staffing concerns. While challenges persist, it’s heartening to witness the industry’s adaptability and positivity.”

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Barry Jackson

BGF, one of the largest growth capital investors in the UK and Ireland, invested more than £55m in small and mid-sized businesses in the North West in 2023.

Across the North of England in 2023, BGF reported strong momentum, investing more than £115m in small and mid sized businesses. In total, BGF invested £430m across the UK and Ireland in 2023. Investments in the North West have included £10.5m in high growth guest WiFi technology business, Purple; £9m in Salford-based software provider, Voicescape; and £5.3m in Leigh-based technology group, KCA Holdings.

Positive exit activity in the North West in 2023 has delivered a combined Money Multiple (MM) of 2.7x. BGF-backed businesses in the region have continued to thrive in 2023, despite challenging economic conditions. Altrincham-based BSE (formerly R&D Specialists) experienced strong growth last year, opening a new office in Nottingham and making new appointments to add to its tax capabilities. Social media business, KOMI, moved to new Manchester offices, and hospitality group Mission Mars continued to expand its presence across the UK with the launch of a new flagship venue on London’s Shaftesbury Avenue.

As of January 2024, Barry Jackson, who is responsible for BGF in Yorkshire and the North East will now also lead the North West team in Manchester following the departure of Neil Inskip, who is leaving BGF after a 12-year tenure. Barry will continue to report to Richard Taylor, head of growth investments at BGF.

Barry Jackson said: “BGF’s 2023 investments in the North West have included a number of high growth and high quality businesses. Despite the economic backdrop which will continue to create headwinds for many entrepreneurial companies, we are positive about new investment activity over the next 12 months and are confident in the resilience and dynamism of the growth economy in the North.”