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.
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
Man replicates Manchester pizza restaurant’s loo in his own home
Daisy Jackson
A man has fallen so in love with the loos at a Manchester pizza restaurant that he’s recreated it in his own home.
Yep, while most of us spend our time trawling Pinterest or Instagram for our interiors inspiration, local Matt Hatt got his inspo on a trip to the toilet in town.
He was so obsessed with Nell’s vibrant orange bathroom interiors that he’s now created his very own cookie cutter version in his own house.
And Nell’s has been so impressed, they’ve even got stuck in to lend a hand with the finishing touches.
We are totally on board with Matt’s appreciation for a good restaurant loo – you can spend all the money in the world fitting out a dining room, but it really can fall apart if you head to a toilet with a wonky seat or a door that doesn’t shut or hideous fluorescent lighting.
Thankfully you don’t find too many of those around town these days.
From the ultra-luxury bogs around Spinningfields to the cheeky nude-covered toilets in the Northern Quarter, Manchester has a load of brilliant restaurant loos to explore.
One of the best is Nell’s, the New York-style pizza joint down at Kampus, which is painted a vibrant shade of orange.
Matt has nailed that bright toilet decor in his Victorian home in Manchester, down to the white subway tiles, the rounded wall mirrors, and the globe light fixture.
He even slid into Nell’s DMs to let them know about his project, and they offered to give him a branded pizza box, which Matt framed and hung on the wall.
Sharing his inspiration in a video filmed at Nell’s, Matt said: “If you’ve never been in a men’s toilet before, welcome. This is Nell’s Pizza in Manchester and this is the inspiration for our downstairs loo. Isn’t it fab?
Manchester’s smash burger and ice cream legends Big Licks launch huge crowdfunding effort
Daisy Jackson
Big Licks, the Manchester restaurant that’s found the ‘sweet spot’ between amazing burgers and delicious desserts, is sailing through a huge crowdfunding campaign.
The restaurant, which has an eye-catching location down on Liverpool Road as well as two sites in Scotland, has already raised a whopping £135,000 for its expansion dreams.
It’s now pushing to hit £150,000 so that it can open new restaurants and franchises across the UK.
Big Licks was first launched by two teenagers in 2009 as a takeaway – it’s now gone on to be a rapidly expanding name bringing in £3m in sales and more than 400,000 customers in the last 12 months alone.
On their menu you’ll find incredible smash burgers (with up to four patties in each bun) made with free-range grass-fed beef that they source directly from farm, or buttermilk chicken topped with their signature ranch sauce.
There’s also an impressive menu of house-churned ice cream made with quality local ingredients, and cakes, cheesecakes and brownies all baked in house daily.
All that is alongside fried chicken, loaded fries, and other mouth-watering sides.
Next on the agenda for Big Licks is expansion across the country, offering up the chance to become a shareholder in this bright young business.
They want to use the money raised to prepare the business for franchising, with a target to open 18 restaurants by 2027.
Then any extra money raised will be used to open more company-owned restaurants.
And there are rewards on offer for those who choose to invest in Big Licks.
If you invest £100, you’ll get a Big Licks White Card which gets you 10% off in store, as well as owning a share of the business.
Then the rewards continue with other things like free burgers and shakes all the way to merch and much bigger discounts.
Co-founder Anees Ahmed said: “It is clear that the potential is great.”
He added: “We believe one of the key ingredients to a successful restaurant is creating a hangout spot, a vibe. That will always be our aim when you come to Big Licks.”
The businessman then said: “We won’t compromise on quality. We will always keep sourcing within head office. This means we keep producing our own ice cream using locally sourced organic milk and the finest Italian flavours.
“We’ve found that sweet spot. The combination of sweet desserts and smashing burgers that opens up audience’s doors, covering off every craving.
“We want you to be part of the journey and become a shareholder in Big Licks.”
You can find out more about the Big Licks crowdfunder through Crowdcube here.
*Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong.