A business owner should be able to reserve the right to refuse service to customers on whatever grounds they want. When there are no customers left to serve, they get what they asked for.
I’ll agree with this in the private sector, BUT, if you are working for the government or municipality, I do not believe you should have this right to pick and choose who you work with based on race. Say I’m building a road for a city with tax money, I shouldn’t be able to in a instance like this. Other than that, people should reserve the right to refuse service to anyone. Like you said, the free market will make the correction. Fuck government involvement in some bakers business affairs.