Deli Man & Cake Lady, which operated for six and a half years in Highland Park, has closed its doors.
Ruth Reynolds, who was known as "the Cake Lady" prior to opening the restaurant at 1414 McCallie Ave., said the establishment was a victim of the sour economy.
She said, "In two years, the amount we were grossing went down by more than half."
She said a major blow to the business was when the federal government tightened the rules on activities of drug representatives. She said about 45 percent of her business had been catering to doctors' offices that was arranged by the pharmacy reps.
Ms. Reynolds, a native of Rome, Ga., who has been in Chattanooga for 13 years, said she had others willing to take over the business and buy her equipment, but the owner of the property would not agree to a five-year lease.
She said her equipment is for sale, but there is a possibility she may keep it and reopen elsewhere. She said at that location she was only able to operate for lunch.
Ms. Reynolds said since she was already known as the Cake Lady, when she decided to open a restaurant and also have sandwiches, she came up with the name Deli Man & Cake Lady. It opened in October 2003.
The restaurant offered 50 different types of sandwiches as well as soups and salads.
She and her small staff made four or five different kinds of cakes every day. All were made from scratch.
According to the restaurant website, Deli Man & Cake Lady "served up a unique and delicious menu of wraps and sandwiches, soups and salads and, of course, a naughty array of mouthwatering cakes and desserts. If you’re looking for a quick bite to eat in a fun setting, or creative sandwiches and to-die-for desserts for meetings or other occasions, call us."
The staff ranged from four to seven depending on how busy the restaurant was.
Ms. Reynolds said the owners of Chatt-a-Foodie had shared space with her for a time near the end of the operation.