Woodstock’s Kaits Bakes and Buttermilk Creek shut down
The strain of the current economy and tariff war is being felt well beyond the stock market and resource industries; unfortunately, it is also impacting local shops. In recent weeks, two local businesses have been forced to close, citing rising costs that have made it increasingly difficult for small, independent owners to stay afloat.
Frederic Gionet, Director for the Atlantic region of the Canadian Federation of Independent Business, says their recent surveys show that, in addition to rising costs, small-business owners are struggling with decreased demand.
“[Consumers] are tightening their belts,” said Gionet. “If your costs are going up and your demand is decreasing – it’s inevitable,” she told the River Valley Sun.
Kaitlyn Urquhart knows the scenario well. The owner of Kaits Bakes announced on social media on Jan. 6 that she would be closing her storefront effective Jan. 15.
“Unfortunately, I cannot afford the space I am in and need to find a more affordable location to lease from,” she wrote. Her bakery had opened only six months ago.
Urquhart said the rent for her Connell Road location was $3,400 per month.
“We did excellent during the summer months, and I thought it was something we could handle, because we were doing really well,” said Urquhart.
However, thanks to the tariff war and rising inflation, prices for ingredients started to soar – doubling and sometimes almost tripling in cost. She soon found herself struggling to pay her rent.
“The landlord did work with me for a bit and allowed me to send partial payments, but it got to the point where it was impossible to catch up,” said Urquhart.
Monica Cardoso, owner of Buttermilk Creek Eatery, which opened on Woodstock’s Main Street last July, announced their closure via social media on New Year’s Eve. Her announcement cited the “constant rise of prices on goods” as the reason for their closure, also noting that “middle class and small businesses [are] being squeezed out.”
The River Valley Sun reached out to Cardoso, but she declined to comment.
Urquhart said it is difficult for first-time business owners to secure financing, making it even harder to navigate the challenges of a weak economy.
“I had only previously done (weekend) markets, and market income doesn’t show much, so most places won’t give you a business loan.”
Gionet said that while there is a lot of help available for new business owners, it is increasingly difficult to secure approval.
“There is a gamut of programs, but every single one is fairly complicated to access with a lot of red tape,” said Gionet. “It’s more challenging than it was five or six years ago. Banks want more history and more income.”
Gionet also pointed out that many programs offer only small amounts, such as $5,000 to $10,000, which don’t go nearly as far in today’s economy.
Josh Laverty is the Executive Director of the Greater Woodstock Chamber of Commerce. He says his organization provides lobbying support.
“[We act] as an advocate at all levels of government for favourable economic policies and conditions,” adding that the chamber also supports members “with opportunities to share knowledge, network beyond our community and more, including reducing overhead through affiliate partners.”
He added that he believes the Woodstock business community remains supportive of new businesses in the area.
Despite her disappointment at having to close, Urquhart remains optimistic and determined.
“It breaks my heart. We poured our blood, sweat, and tears into this place. It sucks having to leave all this work behind, but it is not the end,” she said.
Urquhart said she’s already looking for a new location to reopen her store.
“I want other people to know when one door closes, another one will open,” said Urquhart, who noted that the community has been very supportive and rallying around her, including sending her leads for new possible locations.
“It sucks when this happens, but don’t give up,” she said.
In August 2025, the Canadian Federation of Independent Business warned that the trade war was squeezing small businesses and predicted that 40 per cent of small, mom-and-pop businesses would close permanently within a year if no action was taken to help them.
