Nine years ago, Kevin and Esther Gilbert paid $85 for a 25kg block of butter for their Dunedin bakery business — last month, that same-size slab cost a whopping $395.

The rising cost of ingredients is one of many factors behind the couple’s decision to close Gilbert’s Fine Food next month, which has both wholesale and retail operations.

Other reasons include an “incessant” increase in difficulties in running a business, difficulty in finding staff, staff costs, margins being eroded, and their own tiredness.

“Twenty years of our lives we’re having to walk away from,” Mr Gilbert, a former president of the Baking Industry Association of New Zealand, rued this week.

“There are a lot of people in the community that think business owners all drive around in Jags … make a lot of money and abuse their staff. It’s just not like that,” Mrs Gilbert said.

Mr Gilbert said the issues were not just a problem in Dunedin or even New Zealand. They cited the recent closure of a 119-year-old family-run bakery in England which was blamed on increases in employer costs and the cost-of-living crisis.

Mr and Mrs Gilbert bought the Charlotte French Bakery in George St in 2006 and the following year bought Lievito Bakery that was operating at the Otago Farmers Market.

The Charlotte bakery was sold in 2008 and they opened a bakehouse and shop in Otaki St in 2011 while still continuing to operate their farmers market stall. In 2022, they opened a second bakery on Highgate.

The business has one fulltime staff member, aside from Mrs Gilbert, and eight part-timers, including Mr Gilbert who was also part of various advisory groups around the training and qualifications side of the industry.

Mrs Gilbert said there was definitely sadness that their business was ending this way. They had hoped to sell it but a buyer was not found when it was put on the market.

With the Highgate premises’ lease due to run out, they decided to close that shop at the end of February, while the last day of trading at Otaki St would be April 17. Easter Saturday would be the final Otago Farmers Market they attended.

While people had been spending less in recent years, the farmers market had been a very strong performer all the way through, and they hoped another bakery might like to expand to fill their gap.

For a baker and creator, that environment was “amazing”.

“People have faith in you so you can try something … but equally, you get instant feedback. From a food producer point of view, that’s invaluable,” Mr Gilbert said.

He said his role as a Dunedin city councillor had not affected the business as his wife had joined fulltime in 2019. His decision to seek re-election this year was made irrespective of the bakery.

As for their future plans, Mr Gilbert said they were focused at this stage on the intricacies of closing a business. He was regularly asked for recipes and he would like to compile a book.

There was also potential for a consultancy, particularly focusing on hospitality and baking, and while that might sound odd when they were closing the doors on their own business, they had a very clear perspective of their 20 years of experience.

He was also proud of the staff he had trained, some who now had their own businesses, while his wife said they had “done a lot of good stuff and fed a lot of people”.

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