Why Legacy Food Brands Are Closing in 2026—From Lammes Ca...
Dawn Thilman·2026-05-01·via Forbes - Food & Drink
More business owners are making the hard decision to close shop.
getty
While America celebrates its 250th birthday, many legacy businesses and brands are winding down operations in light of increasing costs and the changing American shopping basket. As I summarized in an earlier piece on waning demand for beverages, global economic, market and political dynamics are beginning to disrupt Main Street businesses, particularly hometown food brands.
The Changing Economics For Food Brands
As recently reported in several news outlets, Lammes Candies, a chain of candy stores serving Texans since 1885 announced it will be closing its doors. It may be challenging to imagine how a candy company faces “unprecedented economic pressures," but several dynamics are at play that challenge established brands. Although high profile global disruptions are likely one culprit, there are several dynamics challenging rural business owners, including persistent changes in food and beverage markets.
High fuel and transportation costs are top of mind currently, compounded by shortages in labor and shipping containers, all of which increase food costs. Particularly for companies that rely on global supplies for their key ingredients (chocolate, coffee, some produce), their costs of production will continue to see increased pressure.
Food price inflation is hovering around 3% in early 2026, but that rate changes greatly depending on the type of food. Egg and dairy prices are actually declining, but demand for some premium proteins (such as beef), chocolate and coffee has led to double digit price hikes. And that is for the raw ingredients, once a restaurant or food business uses their skills to create a meal, snack or beverage, the menu and shelf prices are increasing fast.
Acai smoothie bowl, superfood vegan breakfast. One emerging functional food and snack trends.
getty
MORE FOR YOU
The Changing Way Americans Eat In 2026
If global economic and political pressures were not enough, the American palate is changing rapidly. Americans are increasingly eating alone, or in an attempt to save time or multi-task, converting regular meals to grazing on snacks throughout the day. This change in eating pattern may signal that food companies need to rethink how their brands fit into consumers’ lifestyles and if they can see new trends as opportunities to update their offerings.
Many are quick to think that large food retailers are driving this trend, and big store brands (Walmart, Amazon, Safeway) still do sell the majority of American food. But, the number of places and channels we buy food is diversifying with a focus on fresh, unique and local offerings. Legacy brands could benefit from this shift, but only if they rethink their product line and messaging with a particular focus on how Gen Z, the largest generation that is gradually gaining purchasing power, are making food purchases.
Just as younger generations are drinking less, the National Association of Convenience Stores used Nielsen IQ data to illustrate that Gen Z and Gen Alpha are disrupting the snack industry. Younger Americans are buying snacks less frequently, choosing smaller pack sizes, and demanding more. Top of their list is functional benefits, particularly nutritious ingredients, are their focus and they seek out transparent labels that share details, from protein levels to natural ingredients with a strong aversion to additive colors or flavors.
Main Street In A New Era Of Eating, Drinking And Snacking
No one knows their community better than main street business owners that get to engage directly with their customers. But food brands steeped in history may feel pressure to not change from their long-time customers. An earlier Forbes piece on Snacking illustrated that, although some households may do bulk snack purchasing from Discount stores or online retailers, new snacking trends could also challenge local coffee shops, natural food stores or breweries to expand their offerings.
Given the changing demographics of rural areas I highlighted in my 2005 piece on the Rural Melting Pot, hometown businesses should also consider ethnic food trends. Perhaps a coffee shop now expands their hours to integrate Matcha drinks, kombucha or Boba teas and capture foot traffic later in the day. Or, a natural food store converts some of their grocery floor to a fresh deli or space to grind your own nut butters or flours from whole ingredients. Increasingly, main street brewpubs will host locally owned food trucks, to give their patrons food options beyond what they can offer from their own kitchen. Many of those food trucks are the first or only ethnic food offerings in small rural communities.
Many hold their childhood food brands, local diners and Main Street storefronts dear in their memories of their hometowns. And, for much of American history, that nostalbia buoyed historic brands. But current economic pressures and the changing tastes of Americans require business managers to revisit their craftsmanship and collaborations. It is likely that Lammes Candies carefully arrived at the tough decision to close their doors, but what if they had made another choice to add lightly processed nut snacks or single source chocolate (both with the functional benefits commonly cited by nutritionists) to the case where they carry their Texas chewy pralines? By leaning into new food trends and more localized supply chains (given the Texas pecan supply), they may have mitigated the challenges their business faces.
