According to Hobby Lobby's official website, they only allow Apple Pay for online orders and not store purchases.
Hobby Lobby:
In-store, you can pay with a credit/debit card of Visa, Mastercard, AmEx, or Discover, cash, check, or Hobby Lobby Gift Card.
So, if you're shopping in-store, Apple Pay likely won't work. If you shop online via Hobby Lobby's website, you could use Apple Pay.