A historic Texas candy store chain is closing its doors after 141 years because of financial challenges tied to rising costs for ingredients and labor as market conditions change.
Lammes Candies has closed six Central Texas stores because of "unprecedented economic pressures and market conditions," officials said. The maker of its famed Texas Chewie Pecan Pralines has been in business since 1885.
"In recent years, the company has carefully evaluated shifts in the marketplace and the long-term sustainability of its operations," Lana Schmidt, co-owner of Lammes Candies, said in a statement on social media. "After thoughtful consideration, ownership has made the difficult decision to cease operations."
The Austin-based family-run candy maker expects to continue operations at its Austin flagship store at 5330 Airport Blvd. until it runs out of inventory.
Lammes Candies isn't alone with its sweet business falling on hard times. Dallas' Kate Weiser Chocolate Shop, a supplier of artisan chocolates to Neiman Marcus and Central Market, is permanently closing its doors after 12 years in business. This decision is expected to affect four Dallas-area retail locations.
"Our business is highly seasonal, labor-intensive and, over the last few years, has required a heavy financial lift to continue operating," Kate Weiser, who built her chocolate empire on hand-painted chocolate truffles, said in a social media post.
Challenges for confectioneries have grown with competition not only from rival shops, but also from restaurants offering their own after-meal delights, said David Zoller, an executive vice president at Dallas-based Weitzman.
From rivals like Crumbl to Nothing Bundt Cakes to Tiff's Treats, Zoller told CoStar News there appears to be a wide array of offerings for customers choosing to indulge. Mix in escalating labor costs and higher distribution expenses and it creates the perfect storm forcing some niche retailers to exit their longtime businesses, he added.
Other layers of complexity, like the rise of usage of GLP-1 medications to quash appetites and an increase in cocoa prices, also create challenges.
"I can't tell you how many people I know that are on a GLP-1," Zoller said, who added the medication often results in shared entrees and no room for dessert.
Cocoa prices have been rising, hitting highs not seen since February, amid growing supply risks, according to online platform Trading Economics.
Weiser said the chocolatier has arranged for the production of Carl the Snowman — a hot chocolate kit featured on Oprah's favorite things in 2025 — with its partners at Central Market for the upcoming holiday season.
Kate Weiser Chocolate Shop, with a Garland, Texas, manufacturing center, is also closing its Dallas-area locations in Trinity Groves, NorthPark Center, Clearfork and Grapevine.