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.
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.
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.
“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
A bottomless brunch with unlimited lager is launching in Manchester
Daisy Jackson
A bottomless brunch with unlimited pints of lager will be launching in Manchester this month.
Forget the mimosas and warm prosecco and lacklustre portions of French toast – this new bottomless offering is all about proper pints and hefty focaccia sandwiches.
The Lager, Lager, Lager bottomless brunch is the newest fixture in the Trading Route’s roster, taking place in the lagerhouse at St John’s every Saturday.
It’s designed to be Manchester’s first bottomless tailored to those who love, tall, foamy pints of the good stuff.
Every punter will get 60 minutes of unlimited, freshly-poured foamy pints, as well as a choice of the restaurant’s focaccia sandwiches, made in-house every single day.
DJs will be spinning classic house and disco tunes as you tuck into your pints and butties.
Jamie Scahill, Trading Route Co-Founder said: “Lager, Lager, Lager isn’t an underworld event, it’s for everyone who loves a freshly poured foamy pint to come down and enjoy.
“Whether you were born slippy or not, the fun is to leave slippy, having revelled in great beer, food and company.”
A bottomless brunch with unlimited lager is launching in Manchester
Trading Route opened last year, specialising in perfectly-poured pints of Manchester Union, as well as rotisserie chicken and huge sandwiches.
As well as Lager, Lager, Lager’s launch, over the bank holiday weekend there’ll be a happy hour which will include £4.80 pints, cocktails at £8.50 and a carafe of wine for £12.50 on Thursday 21 August.
Funkademia will then take over the venue from 5pm on Friday 22 August.
Lager, Lager, Lager will begin on Saturday 23 August and will run every Saturday from 12pm until 5pm.
The Trading Route bottomless lager brunch costs £28, and you can book your spot HERE.
The ‘ultimate’ free-to-attend sandwich festival is coming to Manchester city centre
Danny Jones
An event dubbed ‘the world’s greatest sandwich festival’ is coming to central Manchester, and if there’s one thing you need to know about us, it’s that we love things between bread.
Consider us already there.
Following a hugely successful showcase at Camden Town Brewery down in the capital, the butty bonanza known as ‘Sarnie Party’ is making its way from down in London all the way up to Manchester for the very first time.
Better still, it’s coming to the beloved city centre neighbourhood and ever-growing hospitality district that is Kampus next month, and it’s completely FREE entry.
Sarnie Party is the lovechild of seasoned festival curator Molly Hutchinson and Allie Behr of Hot Sauce Society, who have decided to bring together their passions and expertise once again in another ode to the most versatile and almost universally eaten foodstuff: sandwiches.
Promising “big energy, good vibes and full bellies”, it’s already supported by some of the most recognisable brands you’ll find in Britain, including Heinz, Deliveroo, Kraken rum and more.
All of the above will be featuring at the inaugural Manc sandwich festival in some fashion, but most excitingly, some of Greater Manchester’s best and most beloved sarnie artisans will be taking part.
In addition to the usual suspects like Bada Bing and Rack, Pollen, Madre, and OSMA will also be serving up sandwich specials, as well as Liverpool favourite Derek’s, and The Big Deal’s ‘Bodega’ from Norwich.
Each vendor will be building a unique, never-before-seen (or eaten) sandwich for the 2025 festival, looking to best impress the locals.
And you best believe we know a good butty around here…
Guests can also expect more food and drink specials from existing on-site Kampus businesses, plus an outdoor bar with cocktails from Kraken and Tito’s Vodka, as well as a selection of ice-cold beers.
While admission to Kampus costs nothing, these indie traders are, of course, hoping to cover their costs, so sandwiches will be able to be purchased via tokens.
A single token will cost you £8, or you can buy a three-token Sarnie Party bundle for just £22; let’s be honest, you’re not going to stop at just one, are you?
More importantly, it’s worth reminding you that the stocks won’t last forever, and once these creations are gone, they’re gone, so you’d better make quick work of this scran-fest.
Local radio station, Reform, will also be serving as the resident DJs and entertainers for the day, meaning you’ll have plenty of time and reason to try and burn off all those carby calories – before inevitably consuming more, of course.
Credit: Supplied
Speaking ahead of the festival, Kampus’ general manager, Harriet Downey, said: “We’re looking forward to bringing Sarnie Party to Manchester and hosting so many sandwich lovers in our garden neighbourhood.
“We’re lucky to have some of the best independent food and drink brands in the city here at Kampus, and it’s exciting to have them joined by so many other great operators to celebrate all things sandwich!”
As for the organisers themselves, they have a simple mantra for you to follow: “Come hungry. Leave happy.” Love that.
Spread across a full weekend, Sarnie Party MCR takes place on 12-13 September, with day one getting underway from 4-10pm, and Sunday running from 11am-9pm. We’ll see you there.
And if this doesn’t quite satisfy your food and drink festival cravings, then you’ll be glad to hear that there’s another event dedicated entirely to pina coladas happening here in town, also.
Georgina Pellant -
23rd February 2023 
