After 25 years, Blue Dog Bakery owner sells 'iconic' business to longtime customer

Kit Garrett remembers when she first realized her bakery was something special.

In the early years of Blue Dog Bakery & Cafe, 2868 Frankfort Ave., Garrett was working long hours and rethinking the eatery’s set-up. For a few months, Blue Dog experimented with closing the dining area to focus on wholesale business and grab-and-go service.

One morning two decades ago, a customer was knocking on the door.

"She looked at me and said, 'How dare you close this place,'" Garrett recalled. "I think that's always kind of haunted me."

It showed her how much people cared about Blue Dog, the bakery she opened in 1998 with her then-husband Bob Hancock.

"People feel really strongly about Blue Dog," Garrett said. "It has made a difference in people’s lives."

A lot of support came from the Crescent Hill community, she said.

"We grew slowly and developed a strong customer base in the neighborhood," Garrett said. "We’re part of a neighborhood that wasn’t as vibrant when we started. There was really nothing here when we started."

Garrett grew protective over the bakery, even as she was running herself ragged while running Blue Dog and Red Hog Butcher Shop, which opened in 2016 at 2622 Frankfort Ave.

"I needed to figure out how to downsize," she said.

When Garrett decided to sell her longtime bakery, she reached out to a real estate agent friend, Libby Loeser, for guidance. Loeser quickly had a new buyer in mind: herself.

For Garrett, worries faded when she found a new owner in Loeser, who worked in the Louisville restaurant industry for 20 years before venturing into real estate and starting a family.

“I wanted so much for it to remain the iconic part of our community that is,” Garrett said. “With Libby, she seemed like the absolute ideal candidate.”

She received other offers, but worried about other potential buyers wanting to change too much of Blue Dog.

As Loeser said, “It just felt right.”

“It has always been in the back of my mind a dream to own a restaurant,” she told the Courier Journal. “It had felt like everything I’ve done professionally led me to that moment.”

While this marked a meaningful moment for Garrett and Loeser, they kept the news to themselves. For the next several months, Loeser learned the ropes at Blue Dog and the two women ironed out all the details of changing ownership.

On Aug. 1, the sale became official.

“We very intentionally didn’t publicize it,” Loeser said, as they hoped to make a smooth transition without spooking customers.

Loeser has kept much, if not all, of Blue Dog the same, including its staff of 20-plus employees, its beloved fresh-baked breads, its range of pastries, and its cafe menu.

“It will still be the place everyone has to come to love,” she said. “I’m not trying to change the vibe or products or anything. We may just try to fine-tune it.”

The new owner is happy to be back in the restaurant industry. At 18, she started as a server at a coffee shop. Loeser, who graduated from the University of Louisville, also worked at Syd’s Bagels, Lynn’s Paradise Cafe, Asiatique, and in management at Jack Fry’s.

“It’s like putting on a warm pair of shoes,” she said. “You jump right back into it.”

She’s also happy to be overlooking one of her favorite Louisville institutions. Loeser, who lives near Blue Dog, has been a patron since it opened in 1998.

“What this particular business means to the community is so special,” she said. “I tell so many people that I see myself less as an owner and more of a steward of the business.”

In recent months, Garrett has had time to focus on Red Hog, which is just a few blocks away from Blue Dog on Frankfort Avenue.

“It’s been good because it’s been the stepchild to Blue Dog for a long time,” Garrett said. “It merits having my full attention.”

While it feels strange to step away, she knows Blue Dog is in good hands.

“It feels really good to know Libby is there and has never missed a beat,” Garrett said. “Plus, I know I can get a great loaf of bread all the time.”

Blue Dog Bakery & Cafe, 2868 Frankfort Ave., is open 7 a.m. to 4 p.m. Tuesday-Saturday.

Reach food reporter Amanda Hancock at ahancock@courier-journal.com.

This article originally appeared on Louisville Courier Journal: Blue Dog Bakery & Cafe in Louisville sold, under new management