Sky-high energy prices are now the main reason for hospitality closures, according to Manchester’s night time tsar Sacha Lord.
The Warehouse Project founder and night time economy adviser has recently taken to Twitter to call on the government to do more to support businesses – stating that the energy companies are ‘cashing in on hospitality’s demise’.
Adding that the big energy companies ‘are bankrupting businesses and forcing people into unemployment’, he pointed to numerous business closures in Greater Manchester before adding that energy regulator Ofgem has ‘a lot to answer for’.
It has undoubtedly been a hard few years for the city’s hospitality operators, with large numbers closing their doors for good in 2022 and more following suit this year already.
Between rocketing energy bills and food costs, record inflation and the largest squeeze on living standards in 40 years, many operators have found themselves caught between a rock and a hard place.
ADVERTISEMENT
Recent notable hospitality closures have included vegan junk food pioneers Zad’s and V Rev, Vertigo, Chorlton neighbourhood favourite The Creameries, city centre institution Cafe Metro, decades-old pizza restaurant Croma and cheap cocktail favourite Font, but sadly the list goes on and on.
Energy is now the main reason for Hospitality closures.
The Government need to step in and make the energy giants release operators from untenable contracts, because it’s clear @ofgem won’t.
Yet, whilst Manchester’s bars and restaurants are closing at pace, energy companies are announcing record profits with Shell reporting record earnings of £32.2bn in 2022 – double the previous year’s total and the highest in the company’s 115 year history.
ADVERTISEMENT
This has led for many to call for the increase in the energy price cap due in April to be scrapped, with opposition parties claiming that the government is letting firms ‘off the hook’.
Meanwhile, many local restaurants are directly citing the energy crisis as their reason for closing their doors.
Announcing its closure last year, popular vegan eatery Vertigo shared on social media that it had been forced to permanently shut all three of its sites: laying the blame at the door of ‘significantly increased costs’ that have made it difficult for the business to continue to operate.
Specifically referring to an increase in utility bills, the team said it was with ‘a heavy heart’ they had to announce that ‘Vertigo is no more’.
Elsewhere, last summer The Lowry theatre warned of a ‘major challenge’ over fears energy costs could triple to £1m this winter, stating that: “The government needs to extend the energy cap to business as well as households.”
Meanwhile, The Old Siege House Bar and Brasserie in Colchester revealed that it “had no choice but to sign a new contract in October in order to access government help”, adding that its bills went up “from 2p a unit on gas to 12p and 12p electric to 44p ! Now tied in for 4 years! Not sure how long we can sustain these prices!”
According to analysis by Shakespeare Martineau, the food and drink industry accounted for 6% of administrations in 2022 – the sixth-highest sector in the UK.
A total of 1,340 businesses – 87 of which came from the food and drink industry, which included several breweries and restaurant chains – filed for administration last year, marking a 56% increase compared to 2021.
Recession fears and the financial pressure on households and businesses mean the worst is still yet to come, an insolvency and restructuring expert has warned.
Andy Taylor, partner and head of restructuring at Shakespeare Martineau, said: “The latest statistics show that the true costs of living and doing business are beginning to bite.
ADVERTISEMENT
“Numerous headwinds – such as the cost of borrowing, and increasing energy, fuel and raw material costs – have become a new normal at this point and businesses are being pulled from every direction. Furthermore, while supportive in the main, pressure from lenders is increasing and HMRC is taking a firmer stance, seeking to cap levels of liability for non-payment of tax.
Adding that the UK is ‘perilously close to recessional phase,’ he continued: “If things continue as they are, we expect to see an increase in businesses failures as they battle tough trading conditions.”
Feature image –The Manc Group
Eats
Three Manchester pubs are officially serving some of the best Guinness in the UK
Daisy Jackson
Guinness has released the first edition of its Harp Guide, which has highlighted the best pubs around the UK to grab a pint of the black stuff – and three are here in Manchester.
The iconic Irish brewery has singled out just 35 British pubs that are serving worthy pints of Guinness stout.
Of the three in Manchester that made the list, one is a legendary Irish pub in the city centre, while the other two are neighbours out in the suburbs.
Up first is – unsurprisingly – Mulligans of Deansgate, an authentic Irish pub in the heart of Manchester city centre that’s been a popular watering hole for Mancs for more than a century, selling more than 13,000 pints a week.
The pub expanded last year and now has two spaces – its traditional, den-like ground floor, and its much larger live music space with vaulted ceilings upstairs.
Pádraig Brady, owner of Mulligans, said: “Being recognised in the inaugural Guinness Harp Guide is a real privilege.
“It’s no secret that every pub gets the same kegs of Guinness delivered, but what makes the difference is everything that happens after that.
“The right equipment, correct cellar procedures and conditions, staff who know how to pour it perfectly, the atmosphere, the daily live music – it all matters. We’ve always focused on doing things consistently, and being the sole Manchester city centre pub in the guide is testament to that consistency.”
Mulligans in Manchester is in the Guinness Harp Guide. Credit: The Manc Group
Next in the Harp Guide is Kennedy’s in Didsbury, a pub which has only been open since August following the success of its original location in Altrincham.
The pub recently welcomed Yard & Coop into its kitchens too, so you can get a traditional Irish spice bag with your Guinness.
Kennedy’s said: “We are super excited to announce that we, amongst 34 other bars across GB, have been selected for the Offical Guinness Harp Guide 2026.
“Not only is this an exceptional achievement within the Guinness community, but it’s an accolade that represents everything we work towards here at Kennedy’s Irish Bar.
“The Guinness Harp Guide celebrates those few bars that capture the warmth, character, and vibrancy that makes enjoying a Guinness so special, and of course, those that serve beautiful Guinness’.”
Completing the list is The Station pub, also in Didsbury, a cosy local favourite and key stop on the legendary Didsbury Dozen pub crawl.
This popular Irish pub has sports, live music three nights a week and a serious love of Guinness – and now it’s officially one of Britain’s best spots to drink it.
These are officially the spots to head if you’re a discerning Guinness fan.
Inside Portfolio, the UK’s first ‘champagne boutique’ and bar in Manchester
Daisy Jackson
A brand-new ‘champagne boutique’ is opening in Manchester this week, boasting more than 250 different champagnes to our city.
Portfolio will be a new bar and ‘immersive wine experience’, which will have one of the largest and most diverse champagne collections in the UK.
Mancs will be able to order champagne by the glass from just £12.50, along with plenty of accessible bottles.
To kick things off, Portfolio will open with a bar food offering that includes Welsh charcuterie, British cheeses and accoutrements, created by co-founder Julian Pizer, formerly of Another Hand and the Edinburgh Castle.
But later down the line, there’ll be a fun, relaxed tasting menu, ranging from a few bites to a full dining experience, obviously paired with the best champagne list in the country.
Inside Portfolio, you’ll be greeted by a striking champagne wall of 100 different bottles, plus a wall of photos from the team’s trips to Champagne in France.
Every drink will be served in exclusive Lehmann glassware imported from Reims, with more than 10 different glass styles and a strict no flutes policy.
There’ll be an open chef’s pass and sommelier station with bar seating, plus a working champagne cellar that will function as a private dining room and event space.
Portfolio champagne boutique opens in Manchester. Credit: The Manc Group
Julian Pizer has created Portfolio with Cameron Foster, founder of Duex Six which specialises in providing exclusive grower champagnes to the UK.
They’ll be joined by Wayne Baxendale as food and beverage director, who has more than 30 years of global wine experience including from Michelin starred restaurants, and Nikolai Kuklenko as general manager, who previously held a role as Head Sommelier at Mana.
Portfolio will be a wine boutique packed with rare grower bottles and vintage prestige cuvées and hopes to ‘strip away the snobbery and make champagne accessible’.
As well as well known names, guests will be able to enjoy rare and highly sought-after cuvées, including Jacques Selosse, Ulysse Collin, Jérôme Prévost, Cédric Bouchard, Larmandier Bernier and Egly Ouriet.
There will also be vintage prestige cuvées from Cristal, Philipponnat, Pommery, Jacquesson, Pierre Peters and Bollinger, some dating back to the 1990s.
As Cameron Foster explains: “We want to strip back the snobbery of Champagne and make it a wine for everyone, whether that’s a quick glass after work, a special celebration, or discovering grower champagne for the first time.”
Portfolio will open on 9 December at 67 Bridge Street, Manchester, with the full restaurant experience launching in February 2026.
Georgina Pellant -
23rd February 2023 
