This weekend, we had to say goodbye to one of our favorite Los Angeles bakeries. Sinners & Saints brought us delightfully decadent treats that included “traditional” patisserie items, as well as vegan and gluten-free cakes, cookies, cupcakes, and more. Everyone we knew loved them. We loved them so much that we had their vegan/gf cupcakes as supplements to our wedding cake! Alas, they had to make some tough choices, and we visited them one last time to stock up.
Why are Bakeries in the United States Struggling?
Sinners & Saints was a small, independent bakery. They didn’t have big venture capital money behind them. Elisa and Dustin had a dream, a plan, and a terrific product. Unfortunately, that’s not necessarily enough in Los Angeles, or in many places in the United States right now.
The Cost of Ingredients
The year started rough. In Los Angeles, bakeries like Sinners & Saints were facing significant cost increases. Remember when eggs were in short supply because of the Bird Flu (BTW, bird flu didn’t go away) and flocks were being isolated, treated, or eliminated to stop the spread? It wasn’t unusual for bakeries to pay nearly $1 an egg. Sinners & Saints indeed had a large vegan selection that wasn’t affected by the egg prices. Still, many of their popular products weren’t vegan.
But we’ve also seen rising costs of flour, sugar, and butter. Price hikes at the hands of supply chain issues, inflation, and global disruptions have all occurred this year alone. Have you seen the cost of vanilla? Climate change is not going to make the cost of vanilla go down. Massive storms in Madagascar caused a vanilla shortage in 2017, and the changes in growing seasons, along with the rise of pests and diseases, are also impacting supply. When the cost of the best ingredients rises, bakeries must either raise prices (which can drive customers away) or absorb the costs, which eats into already-thin profit margins.
Labor Shortages
People often blame rising minimum wages in Los Angeles (and elsewhere) for price increases, but overall labor shortages mean that restaurants and bakeries are competing for skilled workers. Each goodie, from the cream puffs and cupcakes to the pumpkin loaves and tarts, was crafted by an artisan with a deep love for the craft and years of expertise. It’s hard to find that skill set, and you do have to offer competitive pay to find them. And when you are an independent bakery, it’s that much harder when you have to compete with deep-pocket “corporate” bakeries.
Brick-and-Mortar Rents
Bakeries and restaurants struggled during the pandemic, and they continue to struggle. Foot traffic plays a significant role in maintaining a consistent customer base. That means rent and utilities, the costs of which are all rising in Los Angeles. Insurance? It’s also increasing, furthering the financial strain on small, mom-and-pop businesses.
Current Economy/World
We have altered our buying habits to specifically support smaller businesses. However, when the economy and the future feel precarious, as they do now, people tend to cut out what they consider luxuries.
I get it. We bake far more at home now than at any time outside of lockdown. For other consumers, this means purchasing at big-box or corporate grocery stores, where baked goods are mass-produced and often more affordable. We tell ourselves that we’ll return to the treat of an independent bakery when things get better, but our choices now determine whether those bakeries will continue to exist.
Also, when you get threatened with the needless arrival of the National Guard and the Marines for a manufactured crisis, you don’t really feel like going out. What you feel like doing is building a bunker and going into hiding.
Los Angeles Fires
The January fires in Los Angeles impacted every aspect of life in the city. Even if you were lucky enough not to be in the burn zone, businesses closed down or had limited hours so they could support the recovery efforts and their employees. Nothing felt “normal” until well into February, and even then, that was only for the people not directly impacted. I’d be surprised if places like theaters or restaurants have returned to their pre-fire levels.
The Bright Side
Wow, this was gloomy! Sorry about that. Here is the bright side: the owners of Sinners & Saints also own a restaurant called 401k. It’s a gluten-free wine bar and eatery, and I’ve heard that, in addition to dinner, they are now offering Sunday brunch! We love brunch! It’s just two doors down from the bakery, so you won’t get lost. Some of the bigger desserts (and fan favorites) will be part of the menu.
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