Lancaster doughnut shop to close due to cost of living crisis

Blackburn resident Yusuf Lambat, 44, launched Dipz Donuts in 2019 following a trip to the United States a year before, where he discovered a gap in the UK handcrafted artisan doughnut market.

But he is now being forced to close his shops in Lancaster and Leyland, citing Covid and the rising cost of living among his reasons.

It follows the closure of his shop in Blackburn in August.

The firm has struggled with rents and overheads since Covid, and a decision has now been made to shut their doors permanently.

They will close in the new year, giving Yusuf and his team the chance to celebrate the festive season in town first.

"It's been a very hard decision coming, but we have to do what's best," dad-of-three Yusuf said.

"Due to the current situation in the economy with everything on the rise, we just can't afford to sustain our family business.

"We don't want to go into politics, but we can't see anything improving with the current government.

"I speak to a lot of small businesses and they all say the same. People are just fed up and I won't be the last to close a business."

Yusuf said the business began to struggle with the onset of the pandemic shortly after opening in North Road 15 months ago.

The doughnuts and other treats are manufactured in a unit in Blackburn and delivered fresh to Lancaster every day.

"We saw the potential in Lancaster and wanted to bring something new to the city," he said.

"However, the first year of opening we had Covid and lockdowns, and it was a real struggle in the beginning.

"However, we started to do well until recently due to the war, cost of living, high energy bills, increase on ingredients, and people just aren't spending, which we understand.

"We just about pay staff, bills and rent. We are not making any profit."

The struggles have also had an impact on Yusuf's health.

"I'm literally working 24/7 and it's very stressful," he said. "Anxiety kicks in every morning and I am only staying positive because of my three kids."

But he said they hope to continue the business in some format.

"I have a lot of passion for what I do and I have been in the business for 10 years," he said.

"We have been doing a lot of artisan markets and farmer markets all over the north west in the last four months, and that has kind of sustained the Blackburn unit.

"We may just concentrate on wholesale, online orders and markets in the new year.

"I want to carry on. It’s my passion and customers like my doughnuts, but times have changed.

"We would like to say a massive thank you for the support people have given us in the last 15 months."