"It's a sad day for us and our customers. We really tried our best," Up North Family Café owner Martha Brandau said on "Fox & Friends."
"Think of the little people," Brandau continued, "the mom-and-pop restaurants in any small community are really the staples of a community. They're the ones that are supporting little leagues, fundraisers when people get sick. We get affected differently than your bigger chains."
The small business owner said sales have been down 50% over the last three to four months, with product prices simultaneously increasing by 30 to 50%.
Inflation hit a fresh 40-year high in February with the consumer price index climbing 7.9% on an annual basis, according to data released last month by the Bureau of Labor Statistics. Month over month, inflation rose 0.8%.
"With the rising cost of eggs and milk and meat, it was getting to a point where less people were dining out," Brandau explained.
After just barely keeping their doors open throughout the pandemic’s lockdowns and closures, Brandau explained the business was blindsided.
"We were starting to climb that hill and almost get to the top. And then all of a sudden between supply delays, increase in supplies, lack of supplies, it kind of hit us in a direction we didn't think we were going to be affected by it," Brandau said.
The owners of Up North Family Café are taking their lemons and making lemonade, using the closing of this restaurant to open a new chapter.
"It got to a point where it was kind of a no-brainer for my husband and I to say, now is the time," Brandau said, "let's just start over and try to regroup."
FOX Business’ Talia Kaplan contributed to this report.