Sugar Studio, the West Allis bakery and shared kitchen launched by pastry chefs Travis Martinez and Whitney Smedema, is closing its West Allis storefront after owners said rising costs for ingredients, labor and utilities made the operation unsustainable. The shutdown ends a short run for a spot that also rented commercial kitchen space to other small food businesses.
As reported by the Milwaukee Business Journal, the owners are winding down storefront service while they evaluate next steps for the shared-kitchen side of the business.
From Markets To A Brick And Mortar
Sugar Studio grew out of chef Travis Martinez's consulting work and market tables before expanding into a brick-and-mortar operation in West Allis, according to Sugar Studio's website. The site lists Martinez and co-chef Whitney Smedema as the company's leads and describes a menu of pastries, chocolates and small retail items. It also notes that the business offered kitchen rentals and services meant to help other food startups get off the ground.
Built As A Shared Kitchen For Local Entrepreneurs
The space, in the former Daniel's Catering building at 2201 S. 84th St., was pitched as a shared commercial kitchen that could host multiple small-scale bakers and producers, OnMilwaukee reported when owners were preparing the storefront. According to the outlet, the owners tapped a mix of city loan programs and a Kickstarter campaign to cover the build-out, with a model that aimed to provide equipment and training to businesses that could not otherwise afford a commercial space.
Owners Point To Rising Costs
Owners told the Milwaukee Business Journal that higher wholesale prices, wage pressures and utility bills eroded margins and made continued operation untenable. The paper cited their phrase "rising costs including the price of goods, labor and utilities" as the primary reason for the closure. While the storefront is shutting down, the owners are still weighing options for the commercial-kitchen portion of the business.
What It Means For West Allis
The City of West Allis had praised the bakery's plan when it was announced and listed the 2201 S. 84th St. project on its economic development page. As OnMilwaukee observed, shared kitchens can provide equipment and mentoring to entrepreneurs, but they still need steady demand and manageable overhead to stay afloat.
Customers and fellow vendors looking for updates can check Sugar Studio's website for notices about final pickup dates and any future plans. For now, the closure stands as a reminder of how narrow the margins are for small food businesses trying to scale up in today's market.
