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.
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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.
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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.
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“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
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A sports bar dedicated to women’s sports is opening in Stockport
Daisy Jackson
A brand-new women’s-led sports bar is opening in Stockport, marking a first for the North.
Rita Ray’s will be joining the line-up at Weir Mill, the new neighbourhood from Capital & Centric on the banks of the River Mersey.
While women’s sport has grown in popularity in recent years, Rita Ray’s founder says that ‘the spaces to watch it haven’t caught up’.
And so, this new sports bar concept has been born, with all the buzz of a classic sports bar but with women’s sport on the big screens.
The venue will be family-friendly by day, before shifting into a lively social hangout with great drinks, music, and post-matchday energy by night.
It plans to become a community cornerstone too, hosting things like run clubs, classes, quiz nights, book clubs, pop-ups, and community meet-ups.
Founder of Rita Ray’s, Becky Brown, has named the bar after her grandparents Rita and Ray, who loved life, games, golf, and good company.
She says there’s ‘nothing like this in the North at the moment’.
Rita Ray’s sports bar is the second independent venture announced for Weir Mill this month alone – Italian restaurant The Social Trattoria is also heading to Stockport this year.
Becky said: “Women’s sport has grown massively, but the spaces to watch it haven’t caught up.
“There’s nothing like this in the North at the moment, and Stockport and the Weir Mill neighbourhood felt like the perfect spot – creative, independent, and full of character. Rita Ray’s is about sport, community, and inclusion.”
Tom Wilmot, joint managing director at Capital&Centric, said: “Rita Ray’s is exactly the kind of bold, indie concept we love bringing into our neighbourhoods. It’s a brilliant addition to Weir Mill and a great example of the independent operators helping shape this new part of Stockport.”
Cllr Micheala Meikle, Cabinet Member for regeneration, skills and economy, said: “Seeing the North’s first independent bar dedicated to women’s sport choose Weir Mill is a fantastic vote of confidence in Stockport.
“This kind of bold, community‑minded business will add to the growing sense of place we’re creating here – an inclusive space where everyone can come together to enjoy sport, meet friends, and feel part of something special.
“This is exactly what regeneration should deliver: new jobs, strong independents and more reasons for people to spend time in our town centre, while keeping the character that makes Stockport what it is.
“Investment of this quality shows the direction we’re heading and the momentum we’re building, ensuring Stockport remains a vibrant, welcoming and thriving place for residents, visitors and businesses alike.”
Rita Ray’s is all set to open this summer at Weir Mill in Stockport, just in time to roar on the Three Lions.
Mexican chain Wahaca might be returning to Manchester
Daisy Jackson
Mexican chain might be returning to Manchester, six years after its closure.
The much-loved restaurant group is eyeing up new locations in our city, as well as sites in Cambridge, Glasgow, and Birmingham.
Retail and leisure agency P-Three has been tasked with sourcing new sites across the UK for Wahaca, which had to permanently close 10 locations in the midst of the pandemic.
Wahaca restaurants that closed included its popular location in the Corn Exchange in Manchester.
Wahaca was founded in London almost 20 years ago, by MasterChef winner Thomasina Miers and Mark Selby.
Its menu showcases food from across Mexico, with restaurants that are inspired by the modern bustling culture seen in contemporary Oaxaca.
It’s also the UK’s first carbon-neutral restaurant group and multiple-time winner of the UK’s most sustainable restaurant group.
P-Three is looking for large restaurant units (2,500-4,500 sq ft) which Wahaca can move back into as it brings its vibrant food back across the UK once again.
Wahaca might be returning to Manchester. Credit: Wahaca
Thomas Rose, co-founder at P-Three, commented: “Wahaca has firmly established itself as one of the UK’s most authentic and lively restaurant groups, offering diners a bold, fresh and modern take on Mexican street food.
“A longstanding client of P-Three, we are excited to be supporting Wahaca with this next phase of growth and look forward to helping them bring their concept to new cities and locations across the UK.”
Mark Selby, Co-founder & Chairman at Wahaca, added: “After the huge success of our Paddington opening in 2024 and the incredible feedback on Wahaca Reimagined across our 14 individually designed restaurants, we are excited to be once again looking to bring Wahaca’s unique restaurant experience to different areas of the UK.
“We want to find buildings that lend themselves to our distinctive look and feel and know that P-Three will do an excellent job bringing that vision to life.”
Georgina Pellant -
23rd February 2023 
