Beloved Flour&Chocolate bakery will terminate its sandwich section at its Morningside, Northgate, and Redcliffe stores in a significant shift driven by soaring operational costs.
Flour&Chocolate announced the discontinuation of its sandwich offerings after admitting that the relentless rise in operating expenses has been making maintaining this part of their business unsustainable.
As the last toasted sandwiches will be served on the 22nd of June, the bakery aims to focus on its more profitable items to navigate the current economic challenges.
Industry-Wide Struggles
The bakery sector in Brisbane has faced severe disruptions, highlighted by the recent collapse of the BCN Events Group and the shutdowns of Brewbakers in Albion and Cake and Bake in Newstead.
Bakery owners have reported dramatic increases in the cost of essentials like sugar, milk, eggs, and butter—some noting price jumps of up to 77 per cent post-COVID—which have significantly squeezed profit margins.
Lachlan Scott, co-owner of Flour&Chocolate, made a public statement expressing the difficulties faced by the bakery. He noted the sharp increases in ingredients, rent, electricity, insurance, and other significant operating expenses as key factors in their decision.
Mr Scott noted that discontinuing the sandwich section was among the most difficult decisions faced by the owners throughout their tenure as small business operators. The focus will now shift to their primary products, including croissants, breads, pastries, cakes, and biscuits, which have been their specialty since opening in 2012.
Future Focus and Staff Retention
Despite the cuts, Flour&Chocolate is committed to retaining its staff and continuing to produce other popular items like filled croissants, quiches, pies, and sausage rolls.
Mr Scott emphasised their commitment to minimising the impact on their team members during these challenging times, ensuring that affected staff would be offered positions elsewhere within their operations. The bakery also thanked its customers for their loyalty and understanding during these challenging times.
Flour&Chocolate remains determined to uphold quality and service amidst these hardships, hoping their strategic changes will allow them to thrive in a challenging market.
Published 20-June-2024
