Homegrown Bakery Butter Studio Survived “Almost 100%” Dip In Sales During Pandemic With Vaccination-Themed Cakes & DIY Decorating Kits

Drastic drop in sales during Circuit Breaker

“As most of our retail points are in malls, we were directly hit [by Circuit Breaker rules last April]. We were forced to shut within less than 24 hours and it was completely unexpected. We didn’t think that [the measures] would be so drastic,” recalls Shannon. Three out of her four outlets are located in malls – Bugis Junction, Tampines Mall and Takashimaya Food Hall in Ngee Ann City (the bakery chain’s flagship is a 25-seater cafe at Jalan Besar).

“Even before the official announcement, we were already suffering from dwindling sales as people started becoming more wary of crowded places. The foot traffic in malls dried up. Then the measures kicked in and we had an almost 100% drop in sales.”

Shifted focus from walk-ins to delivery

Shannon shares that being on GrabFood has been “vital” for her business, especially during the Circuit Breaker in 2020. Before Covid, Butter Studio, which specialises in desserts boasting whimsical, colourful themes like unicorns and mermaids, was predominantly a walk-in operation.

“Our handcrafted cakes and pastries are very visual. Before the pandemic, our customers preferred to visit the stores to choose them personally,” she says. “[We noticed that] more people were using GrabFood [during Covid] and that’s when we decided to go for a full onboarding for all our stores. Previously, only one or two outlets were on it.” All four Butter Studio outlets were listed on Grab’s delivery platform in early 2020.

“Receiving delivery orders gave us renewed purpose during those dark times. We may not have been able to feel their physical presence, but through the orders, we knew that customers were still purchasing from us. It motivated us to keep going,” shares Shannon. Using platforms like GrabFood has also unlocked a new customer segment for Butter Studio. “We were able to reach people who require last-minute cake deliveries.”

Introduced new menu items

“Our business is very celebratory in nature. During Covid, people could not hold family gatherings or parties, so we had to think out of the box. That’s how we came up with ideas like DIY cupcake decorating kits and vaccination-themed cakes,” she says.

During the Circuit Breaker, the halal-certified bakery chain launched DIY decorating kits for their signature unicorn and mermaid cupcakes. “We noticed that parents needed new, interactive activities to enjoy with their kids, so we thought of a way to bring the experiential side of Butter Studio to their homes.”

Introduced last June, Butter Studio’s vaccination-themed treats, which include cupcakes, cakelets and whole cakes, also proved popular. Customers ordered these quirky desserts with fun touches like miniature ‘injectable vials’ of raspberry compote and jellybean ‘pills’ to celebrate being vaccinated and as gifts for friends and family working in the frontline.

Constant innovation

To stay competitive, Shannon reached out to GrabMerchant Centre, which was launched by the tech company to provide affordable strategic consultation, operational support and networking opportunities for its small-medium merchant-partners. Through personalised review sessions with a Grab account manager, Shannon was able to identify ways to boost Butter Studio’s visibility and improve sales on GrabFood.

“We revamped our delivery menu with better visuals and more descriptive language to attract more orders,” says the entrepreneur, who observed a ten percent increase in orders following these changes. “We’ve also revised our R&D process, like reducing the height of some of our cakes and making sure the decorations are more viable for a smooth delivery.” 

Shannon was also advised to monitor peak delivery timings so her team could be better organised. “During busy hours, sometimes our staff may forget to update the online menu when an item is out of stock. By taking note of peak timings, the team is more prepared to handle online orders while also serving walk-in customers.” To improve workflow, Shannon introduced brief daily sessions on how to use the online delivery terminal so the team can become more familiarised with the system.

Looking ahead

While Shannon reveals that her business has not made a full recovery to its “pre-pandemic state”, she remains “cautiously optimistic” about the future. “We’re focused on finding new ways to improve how we operate our stores and how to serve our customers better. We’ll continue to introduce interesting items in line with changing consumer patterns, including special dietary and baby-friendly options.” she says.

“We’re very thankful as a company to be here after all these years. I feel that the pandemic has made us a lot more resilient and adaptable. We’re excited to explore new growth opportunities that come our way.”

Interested merchants can sign up for GrabMerchant Centre here, or contact the team at gmc.enquiries [at] grabtaxi.com.

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