Rent rises cause The Good Loaf Sourdough Bakery and Cafe to close

Multiple rental increases, "demanding" lease conditions and staff shortages contributed to making the bakery's operation unsustainable, owner Laurie Whelan said.

The former Bendigo mayor said he and his late wife Julie became hooked on sourdough bread for health reasons in the 1980s, as it was easier to digest and was low GI.

"This passion led to the establishment of The Good Loaf in 2009, fulfilling an untapped demand in Bendigo," he said.

The business took over from Beaurepaires at the iconic UFO-shaped building, which was listed on the Victorian Heritage Register.

Over the years, The Good Loaf became a haven for homemade loaves, cakes and hot cross buns, which were crowned best in the country in 2018 and 2019.

Mr Whelan said the early starts and late finishes that came with owning a bakery led to him running the business like a "monastic devotion".

But it was known for more than its food, becoming a place for locals to meet and catch-up, and for weekly and monthly markets to be held.

"We've been part of the community's fabric, from the Trove Market to the Farmers Markets, and even supporting local groups like Freewheeling Fun," he said.

"It's been a place for people to gather, like around a kitchen table at home."

Mr Whelan said the Good Loaf's sister location Monash Cafe, located at the Monash University School of Rural Health, would continue to run, but would not sell the bread previously baked at Hargreaves Street.

He said he would take a break, but might have to build a pizza oven to bake his beloved sourdough at home.

He hoped The Good Loaf would be remembered as a place of community, quality and passion for bread.

"I hope The Good Loaf is remembered as a warm, welcoming spot in Bendigo, where good food and good company were always in abundance," he said.

Mr Whelan said staff were "shocked and disappointed" at the news, however he had confidence they were well-trained enough to find employment elsewhere.

The final day for the bakery and cafe will be on Friday, December 29.