How These $6 Cakes Became an $860k Business

The Deal Show

The Deal Show

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He bakes 2,000 mini cakes in just 6 hours inside a ghost kitchen in Austin. In this episode of The Deal, Nathan Latka breaks down the real revenue, margins, production system, and how the founder bought this mini cake brand for $100,000.

This is the story of how a 48 year old operator took over Texas Pecan Cakes and stepped into a business that once generated $860,000 a year selling only mini pecan cakes. Nathan visits Ghostline Kitchens to uncover how the operation works, how many cakes Scott produces per week, how he sells 10,000 cakes a month, and whether this ghost kitchen model can scale.

🔥 Real numbers in this episode
• 2,000 cakes per 6 hour shift
• $0.65 cost per cake
• $5.99 retail price
• 60 to 65 percent margins
• 10,000 cakes sold monthly
• $100,000 purchase price
• $860,000 peak revenue year

⏱ Chapters
00:00 How ghost kitchen baking works
00:04 The 2,000 cakes in 6 hours line
00:10 Why this founder bought the brand
01:00 How Ghostline’s kitchens operate
03:01 Meeting Texas Pecan Cakes
05:14 The original founder story
06:35 Production output and molds
07:12 Cost per cake ($0.65)
08:20 Pricing and margins (65 percent)
09:35 Marketing spend breakdown
10:53 Retail vs direct margins
12:20 Scaling production
14:35 Nathan’s investment offer

đź’¬ Would you take this deal?

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