East Village Bakery Struggles with Rising Fuel and Delivery Costs

Izola Bakery faces surging expenses for gas, construction materials, and flour deliveries amid global supply chain pressures.

Mar. 31, 2026 at 11:34pm

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Izola Bakery, a beloved East Village bakery in San Diego, is facing significant financial challenges due to skyrocketing gas prices, delivery costs, and construction material expenses. Co-founder and executive chef Jeffrey Brown says the bakery is being squeezed by fuel charge increases across its supply chain, from food suppliers to construction material deliveries. Despite efforts to source some products locally, the bakery is bracing for further price hikes that threaten to impact the quality and affordability of its signature baked goods.

Why it matters

The struggles of Izola Bakery reflect the broader economic pressures facing small businesses in San Diego and across the country as high inflation, global supply chain disruptions, and the lingering effects of the pandemic converge. The bakery's experience highlights the difficult choices local entrepreneurs must make to keep their doors open and maintain quality while navigating rising costs.

The details

Izola Bakery co-founder Jeffrey Brown says the bakery is feeling the pinch of gas prices nearing $6 per gallon, with delivery costs for construction materials increasing by $1,000 per semi-truck load. The bakery hauls in supplies like flour by the pallet daily, and Brown expects to receive a notice of higher flour delivery costs soon. To offset these rising expenses, the bakery is sourcing some products, like milk, locally, which Brown says tastes better and is slightly cheaper. However, the bakery is still struggling to maintain its quality and affordability as costs continue to surge across its supply chain.

  • Eleven days ago, Brown received a letter stating the cost to ship materials for renovations at the bakery's dough factory in City Heights would increase.
  • Global oil costs and regional supply constraints have driven the average cost of gas in San Diego to nearly $6 per gallon.

The players

Izola Bakery

A beloved East Village bakery in San Diego, known for its flaky croissants and other baked goods.

Jeffrey Brown

The co-founder and executive chef of Izola Bakery, who is navigating the bakery's financial challenges amid rising costs.

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What they’re saying

“Everybody who gets a delivery or makes a delivery is going to feel these fuel charge increases, you know, from our food supplies, from our construction materials, all of it.”

— Jeffrey Brown, Co-founder and Executive Chef, Izola Bakery

“We've been really squeezing and working it, but always maintaining that quality. And so now it's like woosh woosh woosh.”

— Jeffrey Brown, Co-founder and Executive Chef, Izola Bakery

“We're sourcing some products domestically. We now buy our milk in the county, and I have to say it tastes better, you know, and it's a little bit cheaper.”

— Jeffrey Brown, Co-founder and Executive Chef, Izola Bakery

What’s next

Izola Bakery is closely monitoring the situation and exploring additional ways to offset rising costs, such as further localization of its supply chain and potential price adjustments to maintain the quality and affordability of its baked goods.

The takeaway

The challenges faced by Izola Bakery illustrate the significant economic pressures small businesses in San Diego and across the country are grappling with due to high inflation, global supply chain disruptions, and the lingering effects of the pandemic. As local entrepreneurs navigate these obstacles, their experiences underscore the importance of community support and creative problem-solving to sustain beloved neighborhood institutions.