Since the start of the pandemic, food costs have increased significantly. And although food inflation has eased, Maddie Gartmann, creator of Garty Goodies, a cookie business in South St. Paul, Minnesota, said costs are still a major challenge.

“I’ve had to increase my prices per cookie for a couple of reasons,” Gartmann said. “One is because the cost of living now is more expensive and the ingredients are more expensive.”

As the holiday season kicks into full swing, “Marketplace” host Kristin Schwab checked in with Gartmann to see how business is going. The following is an edited transcript of their conversation.

Kristin Schwab: So the last time we talked, I came and watched you make bulk batches of cookies in your little KitchenAid mixer in your house, and you were building a TikTok studio in your basement. Are you still working out of your house? How’s it all going?

Maddie Gartmann: Yep, still working out of the house, still making large batches of cookies in my little KitchenAid mixer. Actually, I think since then I have upgraded to a larger mixer. That summer, my little studio downstairs was completed and was in business.

Schwab: And how has business been since then? What have been the biggest challenges in the last couple years since we’ve talked?

Gartmann: I think as far as my cottage food business goes, one of the bigger challenges has been supply of stuff like eggs and butter. And it’s just been surprising because we’ve never encountered shortages like this before. Earlier this spring, the price of eggs was insane, you know. And so that’s been a huge adjustment for bakers. And sales have kind of decreased, I’d say, in the last year. The amount of people ordering has slowed down a lot.

Schwab: Between the shortages of ingredients and increases in prices, what does that mean for your business?

Gartmann: So I’ve had to increase my prices per cookie for a couple of reasons. One is because the cost of living now is more expensive and the ingredients are more expensive. And also, I’ve been doing this longer, so my skills have improved. So of course, then there’s a smaller group of people who are purchasing my cookies. So, I’m still able to make the same amount of money, but I don’t have the same number of buyers, that’s for sure.

Schwab: Are the buyers mostly for special occasions? Who’s your customer, and what are they buying?

Gartmann: Yeah, so when I talked to you two years ago, the DIY kits were so huge. And it just makes sense because so many people were home, they were looking for things to do, activities that they could do with their kids. And those are still definitely in high demand. But now that I’ve been able to do custom orders again, because events are happening, those customers are coming back. I’m getting all of those custom orders again for the really specialized events.

Schwab: So you have cookie kits, custom orders, you teach decorating classes online and in person. You also have nearly a million followers on TikTok. What is the most important part of your business? What really pays the bills here?

Gartmann: That’s a great question. What really pays the bills are those decorating classes, especially those in-person ones. And luckily, that’s what I enjoy doing the most. And I found that they’re still incredibly popular. So the popularity of cookie classes since I started teaching them in 2019 has stayed consistent, which is awesome.

Schwab: As we approach the sugary-est season of the year, I have to ask, are you a big cookie eater? Do you ever get tired of eating, making or smelling that sugary smell of cookies?

Gartmann: I’m not a big cookie eater. Can you believe that? I would much rather have a bag of chips or something salty or savory. Like I’ll reach for those little pickle roll-ups, the Midwestern sushi. I’d rather have a handful of those than sweets. I will rarely grab the sweets. It’s probably because I’m surrounded by it all the time.