Creative Foods, which is part of Brakes, said it was considering "outsourcing" the products currently produced by its 90 employees in Torquay to a Somerset company.
A statement said the move was considered necessary "in order to remain competitive".
"We will be consulting with our colleagues based in Torquay over the coming days," the statement added.
If the move goes ahead, the hot and cold desserts currently produced in Torquay will be produced under licence by Ministry of Cake in Taunton, which is part of the Greencore Group.
