Business pressure across hospitality
The pressures affecting cake events are occurring in isolation. They mirror broader trends across hospitality and food businesses. ASIC corporate insolvency statistics show that in the first quarter of the 2024-25 financial year, 3,633 companies entered external administration, a 45.6 % increase compared with the same quarter the previous year. One of the industries most affected was Accommodation and Food Services, with 709 companies entering administration, representing a 109 % increase.
While cake decorators and baking businesses operate in a specialised niche, they are closely connected to the same ecosystem: hospitality venues, commercial kitchens, ingredient suppliers, and food retailers. When that ecosystem experiences stress, events feel the ripple effects quickly.
A changing event model For many organisers, the decision to cancel an event is not about lack of demand. Instead, it reflects a shift in how creative communities gather. Large flagship events require substantial upfront financial risk. Venues must be secured months or years in advance, suppliers contracted, marketing budgets committed, and staffing organised long before tickets are sold.