NEW ALBANY, Ind. (WDRB) -- A bakery in downtown New Albany will close its doors this spring, citing rising costs of product, utilities and labor.
Zechariah Maxey and his wife Kimberly Maxey announced the closure of Leaven Bakery earlier this week. The couple said the cost of their ingredients, rent and utilities have all increased drastically.
Zechariah said after months of struggling to manage the rising cost, they were informed that their landlord was selling the building. He said they searched for a new location for a while before making the hard decision to step away from their business.
"Smart business people know when it's time to call it," Zechariah said.
Pictured: in this frame grab taken from video, Zechariah Maxey talks about the tough decision to close the southern Indiana business after five years. (WDRB/Jonathan McEmber)
The couple opened the shop back in 2021 after losing their jobs during COVID.
"We've always wanted to open our own place, and COVID definitely gave us that very big push to go ahead and just go forward with it and do it," Kimberly Maxey said on opening day in 2021.
Then, it was a dream come true, but Zechariah said the money they make in sales doesn't stretch as far as it used to.
"At first we were looking at $500 a day," he said. "We'd be coasting, being able to pay bills and put money in the account."
He said the business would need to double its weekday and weekend sales to be comfortable.
"You do your best to try to give your customers what you can for what they're paying," Zechariah said. "It's hard to kind of explain to them that, 'hey, look eggs are expensive.' I don't get it either. Our entire life they've been cheap, but they're expensive now."
Zechariah said they've tried everything to avoid closing, even raising prices of most of their menu items.
"Your regulars, they notice," he said. "Our sandwiches when we first opened were at $10.25 and now we're charging almost $20 a sandwich, and that happened in less than a decade — in less than five years — and that doesn't feel good."
Zechariah said many small-business owners are in the same shoes. His family is just choosing to get out while they're ahead.
When making the announcement online, other businesses like The Georgetown Bakery left comments saying that their labor cost have increased by 50% and their ingredients cost increased 36%.
Zechariah said even though they're stepping away from their storefront, he believes owners of small businesses can support each other by sharing goods at cheaper rates.
Previous Coverage:
Downtown New Albany bakery born out of COVID-19 pandemic to close this spring
Husband, wife officially open Leaven Bakery in downtown New Albany
Laid off during pandemic, married chefs turn online bakery into New Albany brick and mortar
Married chefs in Louisville turn COVID-19 furlough into thriving online Leaven Bakery
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