Beloved Denver doughnut shop "Pandemic Donuts" to close its doors

A Denver donut shop that became a community favorite during the pandemic is closing its doors at the end of the month.

Pandemic Donuts, started in 2020, quickly grew in popularity for its colorful, decorated donuts. Owners Gabrielle Henning and Michael Milton said the decision to close is bittersweet.

The two launched the shop after losing their jobs in the food service industry during the pandemic. What began as a necessity soon became a passion project, but the financial strain of the past year has made it difficult to continue.

"There's a bit of sadness, for sure, but we've had a pretty rough year running the company financially, and we're tired, so it's also a bit of a celebration," Milton said.

Rising costs played a big role in the decision. At one point, the price of eggs jumped from $30 to $190 a case.

"We were paying more than the grocery stores," Milton said. "We'd go through about eight cases a week."

According to the Consumer Price Index, grocery prices have risen about 2% over the past year, a slight dip from earlier spikes.

The couple said burnout and payroll pressures also contributed. At its peak, Pandemic Donuts employed more than a dozen workers. Now, the staff is down to two.

"It's a really emotionally draining industry to be in," Henning said.

"It's hard to pay a living wage here right now," she continued. "I'm excited to move on, and I'm also sad that these ... years are coming to an end."

Their last day of operation will be Aug. 31.