Sugar Sisters Bakery & Cafe is closing; wholesale business to open in new space

WICHITA — Sugar Sisters Bakery & Cafe is closing Saturday, but a new Sugar Sisters Bakery will soon be opening in a new space.

The 3-year-old restaurant has struggled financially and with service issues.

“After three years, we know where our strengths and our weaknesses are,” says Patty Sykes, who runs the business with her children.

“We want to continue doing what we’re doing, but we’ve just got to do it in a way that makes money.”

Sykes hasn’t signed a deal for new space, though she’s close.

She also plans to do orders through a new website, and she’s been talking to other retail outlets about selling her baked goods through them.

That includes traditional bakery items, such as cakes and cookies, and bierocks and quiches as well.

“We’re just going to do what seems like the smart thing to do,” Sykes says.

She’s selling half the equipment in the restaurant.

Overhead was part of the restaurant’s problem, Sykes says.

“It’s a beautiful space, and we really like it there,” she says. “It just didn’t seem to make sense.”

The bakery does well, Sykes says, so she thinks the new business will, too.

“It’s really more of a cost-cutting measure just so we can stay alive and competitive.”

Sugar Sisters Bakery & Cafe pays substantial amount of loan, refinances

WICHITA — It’s not quite the sweet smell of success just yet for Sugar Sisters Bakery & Cafe, but it looks like the restaurant’s legal troubles may be over.

“We’ve got that all worked out,” says Patty Sykes, who owns the restaurant with her family.

In June, Have You Heard? reported that the business, which is near Central and Oliver, defaulted on a $165,000 SBA loan. Citizens Bank of Kansas, which administered the loan, filed a lawsuit against the restaurant to collect the money.

“We just paid off the majority of it and just refinanced,” Sykes says.

According to court documents, Sugar Sisters recently paid more than $90,000 and has $33,415 left to pay on the loan.

Sykes says the restaurant is now making some changes in order to be more competitive.

“We’re just trying to do things that are just going to . . . obviously increase sales and customer loyalty,” Sykes says.

“We’re going to focus . . . less on the cafe side, more on the bakery side.”

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Citizens Bank of Kansas sues Sugar Sisters Bakery & Cafe for defaulting on SBA loan

WICHITA — Sugar Sisters Bakery & Cafe has defaulted on a $165,000 SBA loan, and the future of the restaurant is in question.

Citizens Bank of Kansas, which administered the loan, has filed a lawsuit against the restaurant to collect the money.

Sisters Kristine, Katie and Kelli Sykes opened the business near Central and Oliver with their mother, Patty Sykes, in spring 2008.

Court documents show they still owe more than $125,000 on their note.

“We got behind on the loan,” Katie Sykes says. “We got, like, two weeks behind pretty much.”

She adds, “There was a little bit of . . . lack of communication.”

Sykes won’t elaborate.

She says everything has been taken care of.

“Since it’s been undone, there’s really nothing to talk about,” Sykes says.

That’s not what court documents show.

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Sugar Sisters needs more dough

sugarsisThe year-old Sugar Sisters Bakery & Cafe has fallen behind on its state and federal taxes, but co-owner Katie Sykes says, “We’re not in any jeopardy of shutting down or anything.”

The restaurant, which is at Central and Oliver, owes about $10,000 to the state and another several thousand to the federal government.

Patty Sykes, who co-owns the restaurant with her husband and three daughters, says they’re “just trying to get caught up.”

“We’ve got a good, steady, loyal clientele,” she says. “We just need to build on it.”

Business dropped about 30 percent starting in August due to the economy, Patty Sykes says.

“A lot of people just quit going out to eat,” she says. “It’s slowly trending back up.”

The family is looking for ways to diversify. For instance, Sugar Sisters now sells cookie dough to go and soon will begin offering take-and-bake entrees.

“We need to look for new sources of revenue,” Patty Sykes says.

But she says surviving isn’t strictly up to her or other business owners.

“If you want local businesses to survive, you have to support them.”