XYZ (i.e, Blue Bonnet) Bakes and Custom Cakes... does the "Bakes" part sound like bakery or more like a pasta bake/casserole dish type of thing? Same question with XYZ Cakes and Bakes.
In the context with custom cakes - I think it sounds like baked goods. Although, the first time I read it I thought it was used as a verb.
I would associate it with baked goods because of the word cakes.
I agree... the first way "Bakes and (Custom) Cakes", at first glance looks like it was going to be used as a verb.
The second way "Cakes and Bakes", reminds me of the old commercial for Shake 'n Bake (remember "And I helped!"?)