Cult bakery in Palma's Old Town seeks successor: Between selfies and €5,500 rent

Cult bakery in Palma's Old Town seeks successor: Between selfies and €5,500 rent

How much is a photo opportunity worth when the rent eats €5,500 every month?

If you walk along the alleys around Plaça Major in the morning, you know the picture: the pink façade, artificial flowers in the window and tourist groups who stop briefly, take a photo and move on. The patisserie “Anita Cakes” is now up for takeover — the licence and interior equipment are to change hands for €70,000, and the rent is €5,500 per month. On 170 square meters spread over two floors plus storage, a large display counter offers pastries such as muffins, cupcakes and cakes.

Main question: Is a shop that benefits strongly from photo stops a worthwhile investment for a successor when fixed costs are so high, a situation echoed by other businesses such as When the Margherita Moves Out: Iconic Pizzeria in Palma's Lonja Faces Closure?

A brief reality check: €5,500 rent alone, under the Spanish tax and social security model and with staff costs, requires significant revenues to make a profit. Owner Ana Sánchez built the business about eleven years ago and, in addition to the old town shop, operates food trucks — including at the Christmas market in Pueblo Español — and a location in the Fan shopping centre, and weekend baking scenes are common across the city as described in Saturday in Palma: A Stroll Between Oven Heat and Sugary Shine. According to information, around 17 employees are on staff. This diversification is a safety net — without it the calculations become tighter.

What is often missing in the public debate: the number of passersby who take a photo is not the same as the number of purchasers. Selfies generate visibility, but visibility is no guarantee of repeat customers or large baskets. Also, rents in prime locations are volatile; renegotiations with landlords are possible, but not a given, as discussed in When Rent Eats More Than Profit: Palma's Small Shops on the Brink. For a buyer this means: invest in the short term, diversify revenue streams in the medium term.

Everyday scene in Palma: It is early afternoon, a light breeze carries the clinking of espresso cups down the carrer. A couple in front of the bakery exchange addresses, the sales assistant puts pink paper napkins away, a delivery van briefly parks at the curb. The atmosphere sells — and yet it is often used as an alibi when the numbers don't add up.

Critical points that are rarely discussed loudly: contract durations and rent escalations, additional operating costs and wear caused by tourist traffic, clear rules for taking over employment contracts, and dependence on seasonality. Also rarely addressed: the so-called iconic façade. Such outward appearances attract visitors but do not protect against financial bottlenecks.

Concrete solutions for potential successors and the municipal administration:

For buyers: 1) Careful due diligence: revenue figures for past years, review the lease, calculate personnel costs. 2) Diversification: B2B supply to hotels or cafés, catering for small events, regular baking workshops. 3) More flexible opening hours and targeted off-peak offers to win local regulars. 4) Consider cooperative models: employee- or customer-led cooperative takeover can spread the burden.

For landlords: 1) Gradual rent steps or limited-time entry prices if a shop contributes culturally to the neighbourhood. 2) Contractual agreements for maintaining the façade so that the photo motif remains and tourism does not damage the substance.

For policymakers and the city: 1) Transparent support instruments for businesses in historic districts, not only for new ventures but also for succession models. 2) Advisory campaigns on sustainable business models in tourism operations — workshops, targeted tax incentives or microloans instead of mere marketing rhetoric.

Concrete examples in Palma show that it can work differently: shops that have developed season-independent products or services are more likely to survive. And those who convert the photo audience into paying customers — through small extras, Saturday classes or exclusive take-away packages — have a better chance of covering the rent.

Conclusion: “Anita Cakes” is more than a pretty backdrop — it is a business model that requires care, financial acumen and adaptation. For successors this means not just taking over a pink façade, but taking responsibility to set up the company so that selfies create long-term income. If the city wants to help, it should do so with clear, practical measures and not with appealing slogans. And for pedestrians in the old town: if you take a photo, you can also pop in for a coffee — that makes the difference.