Maybe you're right. Though it seems a little odd for the small city you describe. Who owns the Japanese restaurant, and why did they decide to settle there? I'd ask. Obviously, if the help were here on student visas, they ought to speak reasonable English.
Seems odd you can't get good bread in a place with, I assume, a fairly large German, or at least Germanic, population. Especially now that good bread is back in style. Somebody could make money on that.
No Whole Foods closer than 100 miles? You may despise them, but they DO make good bread. At least the one here does.