Conversation with… Annabel and Emily Lui, founders of Cutter & Squidge
Here we chat with sisters Annabel and Emily Lui, founders of Cutter & Squidge, about how they turned a passion for making nostalgic bakes into a fast-growing, self-funded, direct-to-consumer gifting brand.
How and why did you start the business?
Annabel: We were both in the corporate world. I worked in corporate finance, and Emily was a practising lawyer.
Emily: A typical path for second-generation immigrants. But we both reached a point where we were looking for something more meaningful. Our parents were entrepreneurs – immigrants from Hong Kong who ran restaurants – so food and hospitality were part of our DNA.
Subscribe to TRBWe began with a market stall, selling our original invention – the Biskie, a biscuit-cookie-cake hybrid. It came from a craving for indulgent, homemade flavour, and a bad cupcake that inspired us to do better.
Annabel: We were obsessed with getting the flavour right. We wanted nothing artificial, just rich, nostalgic bakes. Later, we took a chance over the Christmas break and emailed food retailers. Only one person responded and that was John Shepherd from Partridges. That changed everything.
Emily: Just weeks later, Selfridges and then Harrods reached out. It was then that we knew we had something special.
What followed those first wins?
Emily: We went all-in on wholesale; gave up the market stalls, opened a production kitchen, hired staff. It was risky, but it paid off.
Annabel: We learned quickly how to balance growth with negotiation. Selfridges coming in first gave us leverage with Harrods, who wanted exclusivity.
Where is Cutter & Squidge now?
Emily: We’re now a direct-to-consumer gifting brand. Around 80% of our revenue comes from that channel. We also work with five wholesale partners and sell everything from biscuits to afternoon teas.
We did have three cafés at one point, but had to close them during COVID, which pushed us to pivot. In just two days, our DTC sales grew by 1,600%. That was a massive turning point.
Annabel: We now have one store in Soho. Our brand has expanded to include hampers and gift sets – we’re in our third season with John Lewis.
How big is your team?
Emily: We’ve got around 60 people, and we grow to about 80 in peak season. Next year, we expect to hit 100. Last year, we won Online Bakery of the Year at the British Baker Awards – that was a proud moment.
What is it like working as sisters?
Annabel: I’m chief executive and handle vision, product and business development, marketing, and tech. Emily is chief operations officer which fits her legal background.
Emily : We complement each other. While I’m methodical, Annabel is instinctive. We grew up around family-run businesses, so open communication is second nature. There’s no ego in our business – just honesty and alignment.
Annabel: That’s why bringing in external senior executives hasn’t worked for us. We’ve tried, but the structure we have relies on our synergy. The team needs clarity, and we give that by staying hands-on.
Emily: We still talk outside of office hours, every morning and evening. It keeps us synced – not just about business, but also goals, life, everything. That alignment fuels the business.
Annabel: Our team manages us too – they chase us, remind us, and push us. It’s a proper business, not a vanity project. We hire experts and empower them to challenge us.
Have there been any major turning points?
Emily: Early on, both Selfridges and Harrods dropped us in the same week. We were left with about £10-15k in savings and no income. That was a defining moment.
Annabel: We realised how fragile wholesale could be. So, we opened a pop-up shop. We painted it ourselves, built the counter with help from our dad, borrowed a coffee machine, and just went for it.
Emily: It worked. There were queues. People fought for the 13 seats. That pop-up saved the business and gave us direct access to our customers.
What’s changed since those days?
Emily: We’re no longer doing everything ourselves. We’ve built a team. But we still jump in when needed, especially at Christmas, packing thousands of parcels. That helps us stay connected to what’s working and what’s not.
Annabel: You learn the most by being in the thick of it. That’s how we remove blockers for our team.
Emily: I used to think working harder meant growing faster. But now I know you need a team to grow. We have a top-secret launch coming up, managed by 10 internal stakeholders. That’s not something two people can push alone.
What about your work/life balance?
Emily: It’s better now. We have structure. But we’re always on call if needed. These days, our roles are more strategic – monitoring, mentoring, decision-making.
Have you any advice for other founders?
Annabel: Trust your gut. Listen to feedback, but don’t let others sway you too much. Passion and business aren’t the same; you must understand your costs, especially your time. Also, get comfortable with being uncomfortable.
Emily: The best mentors challenge us constantly. You don’t grow in your comfort zone.
Have you taken any external funding?
Annabel: No, we’re entirely self-funded. No loans, not even bounce-back loans. Banks offered “free” money during COVID, but nothing is truly free. If we didn’t need it, we didn’t take it. That’s allowed us to stay in control.
Emily: We saw what happened when Harrods and Selfridges pulled out. It taught us the importance of owning our own destiny.
What’s next for the business?
Annabel: Our goal is to break through the £10 million barrier. Going from £5 million to £10 million is tough; but surpassing £10 million requires a whole new mindset. We’re expanding into non-food gifting, launching new concepts, and partnering with more retailers. September will be a big month for us.
Why do you think your brand resonates?
Annabel: We sell happiness. During COVID, our sales shot up because people needed joy. And sometimes that’s just a bit of cake!
