- Beloved Utah chain The Chubby Baker will close all three stores on November 9, ending its pandemic-era success story.
- Founder Ying Nance cited family priorities and unsustainable rising costs—ingredients, payroll, and overhead—as reasons for closure.
- Closure reflects national trend: thousands of small food businesses are shuttering amid inflation, labor shortages, and fierce competition.
In the heart of Utah’s bustling bakery scene, a familiar name is preparing to fade away. A popular bakery has announced it is closing all stores.
The Chubby Baker, a beloved local chain known for its decadent donuts, fluffy croffles, and indulgent cinnamon rolls, announced it will close all three of its stores on November 9.
What started as a scrappy delivery-only operation during the early days of the COVID-19 pandemic in 2020 has become the latest casualty in a wave of small business closures sweeping the food industry.
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Founder Ying Nance launched The Chubby Baker from her home in Salt Lake City, capitalizing on the lockdown demand for comfort food delivered straight to doorsteps.
Within a year, the business expanded to brick-and-mortar spots in Orem (1167 S State Street), Salt Lake City (317 E 900 S), and Sandy (9470 Highland Dr. Suite 2).
It wasn’t just the sweets that drew crowds— the menu’s fusion of baked goods with specialty teas and coffee drinks turned it into a cozy neighborhood staple.
But rising costs and life changes have forced Nance’s hand.
“As our family continues to grow, I’ve realized how much time and energy this business takes — time I want to spend with my little ones. I am a businesswoman, but I will always be a mom first,” Nance shared in a heartfelt statement.
The decision also stems from unsustainable expenses: skyrocketing prices for ingredients, payroll, and overhead have eroded margins that were already thin for independents.
Restaurant Data Paints Stark Picture on Stores Closing in America
This isn’t an isolated story. Across the U.S., small bakeries and eateries are grappling with similar pressures.
According to Restaurant Data, more than 13,265 independent food establishments shuttered in the first half of 2024 alone, compared to just 2,712 chain locations—a stark reminder of how vulnerable mom-and-pop operations remain.
Experts point to a cocktail of factors: inflation-driven cost hikes for flour, eggs, and labor; lingering shifts in consumer habits post-pandemic; and fiercer competition from big players with deeper pockets.
The U.S. Bureau of Labor Statistics notes that about 17% of new restaurants fail in their first year, with nearly half gone within five years.
As JPMorgan Chase analysts put it, “Small businesses may find it difficult to operate during challenging economic conditions.
Exit rates typically decrease with firm age and cash liquidity, which can help businesses withstand downturns. Historically, the median life expectancy for small businesses has hovered around five years.”
The baking sector, in particular, is feeling the squeeze. A recent outlook from the American Bakers Association highlights six major headwinds for 2025, including projected $454 million in added costs from tariffs on imports from Canada, Mexico, and China—key sources for ingredients and equipment.
Egg prices spiked 8.5% in late 2024, and the industry could face up to 53,500 unfilled jobs by 2030 due to labor shortages.
“From AI to nutrition policy, we’re keeping a close eye on developments that could impact the future of commercial baking,” the association’s government relations team emphasized, underscoring the broader volatility.
Massive Brands Like Panera Bread Are Also Closing Stores
Even national chains aren’t immune. Panera Bread, the fast-casual giant synonymous with fresh-baked bagels and pastries, is in the midst of a sweeping operational overhaul.
The company plans to close all nine remaining Fresh Dough Facilities over the next 18 to 24 months, shifting to a par-baked model where items arrive partially prepared from third-party suppliers and finish baking in-store.
This completes a two-year transition that began as Panera’s sales dipped 5% to $6.1 billion in 2024—its first decline since the pandemic.
Hundreds of workers at these bakeries face layoffs, though Panera says it will offer jobs at cafes or host job fairs.
Brooke Buchanan, Panera’s chief corporate affairs officer, explained the rationale: “This new model allows us to develop more stores and grow throughout the United States in cities and towns that we couldn’t expand to previously because of the limited distance those [fresh dough facility delivery] trucks could travel.”
The change aims to boost efficiency and menu consistency, but it marks the end of Panera’s signature “scratch baking” era.
Earlier this year, franchisee EYM Café’s bankruptcy forced the closure of 15 Panera locations, adding to the chain’s challenges.
Online Orders Are Ceasing in Other Restaurants
On the West Coast, the pain is equally acute. In California’s East Bay, Feel Good Bakery—a Parisian-inspired spot famed for artisan loaves, flaky pastries, and fresh salads—is set to close its two Alameda locations on October 31 after 21 years.
The announcement came abruptly via social media, with no specific reasons disclosed, though online orders have already ceased and preorders refunded.
It’s a tough pill for locals who saw it as a community anchor.
Further south in Texas, Neon Moon Bakery in San Antonio’s historic Bracken Village lasted just seven months before announcing its closure this weekend.
The late-night haven, open evenings for indulgent treats, shared on Instagram: “When I opened the bakery I had one big goal in mind — to create a place people felt at home. I’m proud we accomplished that dream.”
Low foot traffic and operational hurdles in a competitive market likely played a role.
These stories echo a national trend. Coresight Research projects 15,000 U.S. store closures in 2025—up sharply from 7,325 in 2024—with food service hit hard alongside retail.
Business Insider’s tally already exceeds 2,700 closures this year, including independents and chains alike.
As one analyst noted, “Joann Fabrics’ announcement underscores a retail reality we have been tracking closely: 2025 is shaping up to be the worst year for store closures in recent history.”
So, What’s Next?
For bakeries, the recipe for survival increasingly involves adaptation—whether through third-party sourcing, like Panera, or pivoting to delivery hybrids.
For Chubby Baker fans, the coming weeks offer a last chance to stock up on favorites.
Nance’s journey from pandemic innovator to family-focused exit highlights the human side of these numbers: small businesses aren’t just statistics; they’re dreams built on flour-dusted counters and long hours.
As Utah bids farewell to this slice of local sweetness, it raises a sobering question for the industry—how many more stores will be closing as we approach the new year?
Also Read: Experts Now Issue a Stark Recession Warning Amid Ongoing Shutdown
