The air is warm and the workers are busy kneading the dough. The firm's bills are going up, diminishing the festive cheer, because this is the busiest time of year.
Butter has doubled in price and wages have increased dramatically, as have energy costs and the prices for our ingredients." I cannot give it to the customers.
The German government is also affected by it. Wary of the impact on the economy, it is spending around 300 billion on measures to shield people and industry from higher prices.
200 billion is expected to be spent in the coming months, and a third of that amount has already been spent.
In December, all households and small businesses will be able to pay their gas bill. The amount will be calculated using an average monthly bill.
A one-off payment of 300 has been given to most people.
Gas and electricity bills will be capped in the new year. Households and small businesses will be able to pay less for gas and electricity because of government subsidies.
A family of four living in a 100 sq m flat would have paid a monthly gas bill of 100. That's 275. The family is projected to pay 175 when the cap kicks in.
Industry bills will be capped by a subsidy scheme.
The Chancellor's approval ratings at home are at their lowest level since he took office. Germany has resisted proposals for an EU-wide cap on the price of gas.
Some of his EU peers wonder if he's just trying to put Germany first.
Martin Dulig is the economy minister for the region of Saxony and he believes that the opposite is true.
It's about stabilizing Europe. Europe is stable because of Germany. Look at America and China and you'll see that the world has changed. We in Europe need to keep up.
The old communist east of Germany is where public discontent with government policy tends to be higher than the rest of the country.
The mood is difficult because of the situation. We are faced with a social problem for the first time. A pensioner who only gets 850 a month can't afford a 500 energy bill. She needs to get help.
Despite the help, energy bills will still be higher for most people. The government has scrambled to find alternative sources of energy after years of heavy dependence on Russia.
The country's energy network agency says a 20% reduction in national consumption is needed to get through the winter.
The question for many here is not how to stay healthy, but how to pay their bills.
The government isn't able to support us. We were told that help was on the way, but nothing was done.
"I think the family will be okay, but the gas bill hasn't arrived yet, let's see how it looks when it does," says Jan, a young father.
As loaves of Stollen, the fruit bread which is this region's Christmas speciality, rise in the oven, the baker is having to wait and see.
He doesn't know how much help he will get. While his bill has tripled, there is no government subsidy to ease the burden.
He says there is a lot of uncertainty. He believes his business will survive. He cautions that many others may not.
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