Colonial Convenience owner Bob Burow said he was only given a few weeks notice that about 70 per cent of his bread would no longer be transported to Mount Isa.
Manufacturer Goodman Fielder has pulled a number of its bread ranges, citing transport costs, from Queensland's northwest.
"It's five or six brands of bread they've pulled and Helgas is one of them along with Wonder White, Mightysoft, Lawson's traditional breads and the Helgas wraps," Mr Burow said.
The removal of the Mightysoft range would also extend to their hamburger and hot dog rolls.
"We've been through situations like this with other products, but bread is a staple so it's a bit unbelievable," Mr Burow said.
"If it's the transport cost then why not leave the impetus with the customer, put up the price by 50 cents or something to cover it and then they will let you know if they're going to support it by buying it or not."
He said similar situations had played out with other products like milk and eggs.
"We thought we weren't that regional, but a move like this suggests that we are," he said.
Stores in town have also had to adjust after major newspapers also halted delivery to Mount Isa only a few weeks ago.
Mr Burow believes that Woolies will be footing some of the delivery costs themselves to maintain a small range in town, but that independent grocers like himself don't have the bargaining power.
Mr Burow said he had been relying heavily on - and was grateful to Grant's Bakery just a few doors down who had been helping to put some bread on the shelves.
"They've been filling a void for us, but they're stretched to their limits with everyone in town needing to stock the shelves."
He said Brumbies bakeries had ceased wholesale bread sales some time ago so they were unable to pick up any slack.
He said more and more people were looking for gluten free options, or wraps for healthier alternatives and this was another blow to the community
"People aren't happy about it, but they've been understanding," he said.
"Our staff are on the front lines and it's very hard to explain top people why their favourite bread isn't on the shelf any more."
However, Mr Burow said he was trying to arrange a deal with Tip Top that would allow them to carry a few types of bread at least.
"I'm waiting on a call from Tip Top, it's a smaller range, but it will at least give us a couple of choices."
A statement to the North West Star from Goodman Fielder reads:
"As part of our ongoing commitment to our customers and consumers, Goodman Fielder has been working with major retailers in the Mt Isa region on potential solutions to address the increasing costs associated with transport of bread from our Townsville bakery direct to stores.
"We have developed a solution with one retailer through delivery via their distribution centre which will ensure ongoing supply of our bread products to two supermarkets in the area. We continue to work with other retailers on alternative solutions where possible."