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
Subway launches make-your-own jacket potato concept ‘Spudway’ across UK
Emily Sergeant
Subway is finally launching its viral make-your-own jacket potato concept ‘Spudway’ at all its restaurants in the UK.
That’s right – you can now walk into any Greater Manchester Subway and order a jacket potato instead of a sandwich, and you get to choose exactly what goes on top of it.
Britain has always been a nation of ‘jacket fanatics’, with almost half of Brits claiming the spud to be a British cultural icon, but according to new research by Subway, it’s been found that nearly a quarter (23%) of us have argued with family and friends over how to prepare or serve one.
So it’s fair to say that, yes, us Brits do love ourselves a jacket potato, and this is why ‘Spudway’ is launching nationwide.
The UK-wide rollout of Spudway comes after it was trailed in select sites earlier this year, and then proved so popular that the trail was extended to include more locations.
Now, those fluffy jacket potatoes are available everywhere.
You can choose topping options like the simple Cheese & Beans or Tuna Mayo, or you can opt for Subway specialities like Meatball Marinara, and Chicken Tikka, but the beauty of Spudaway is it’s all fully customisable.
This means you can pick, quite simply, from whatever you fancy at the protein and salad counters, and finish it with your choice of Subway’s wide selection of signature sauces.
“The nation’s love of Jacket Potatoes is unparalleled,” commented Cathy Goodwin, who is the Interim Director of Culinary & Innovation Subway EMEA.
Subway has finally launched its make-your-own jacket potato concept ‘Spudway’ all across the UK / Credit: Subway
“The enthusiasm we’ve seen on social media and the strong demand from our guests throughout the trial made it clear that Spudway deserved a permanent place on our menu.
“Made with British potatoes, Irish salted butter, a double portion of cheese, and fully customisable with any of our many toppings, Spudway is the perfect freshly-made, high-quality lunch choice.”
Spudway jacket potatoes are freshly baked in-store daily and can be enjoyed on their own, or as part of a meal deal – which includes a spud, drink, plus crisps or a cookie.
Manchester tapas spot Maricarmen opens second city centre site
Danny Jones
Affordable Manchester tapas spot Maricarmen has just finished launching its second site in town, doubling its city centre presence with the official opening on Thursday, 4 September.
Maricarmen launched on Great Ancoats Street back in June 2023 and quickly became a firm Manc favourite, famous for their £3.50 dishes
When it comes to their small plate approach, they serve up some of the best tapas in Manchester, and even the shopfront seats at their popular roadside location are regularly full regardless of passing traffic.
However, if there’s ever been one gripe we’ve had with the place, it’s that the outdoor area isn’t the most peaceful, even if it is a stunning suntrap on a warm day – that’s where the new restaurant comes in.
Ancoats…… vs NQNew but familiar (Credit: Supplied/The Manc Eats)
We’ve been semi-regular visitors of Maricarmen ever since it started out life as a pop-up just around from Cutting Room Square, and they’ve gained speed and reputation ever since.
Known not only for authentic, value-for-money tapas, but welcoming plenty of punters for a simple drink as one of the best places for a sangria in central Manchester, they’ve managed to stay relatively just not just when the weather is bright but throughout most seasons.
While the Ancoats restaurant is known for the aforementioned roving ‘El Tableo’ style of service inspired by southern Spain, the newest location will be slightly different, revealing not only lighter colours and Alicante beach influences with a focus on alfresco eating, but lots of new specials.
Created by Marian Diaz and Jose Nunez, who previously owned a tapas restaurant in Madrid, La Porcineria, which was sadly curtailed by Covid.
On the bright side, Manchester has been the greatest beneficiary of their fresh start, and we can’t wait to see what venue number two delivers.
Co-founder, Diaz, said of the new opening: “Maricarmen is about compassion, hard work, strength, reinvention, opening our minds & hearts and connecting with people. It’s more than just food, for us, it is the beautiful moment when we see our customers and our coworkers smile because they are here.”
She went on to add, “To us, Manchester signifies the ability to reinvent and grow. The people here support you without expecting anything in return. It’s really beautiful. I have never felt this before in my life. […] We’ve built up such a loyal customer base of locals – many have become dear friends.
“And to be in a position to open a second site within two years and share our love of good food and great times with Manchester’s Northern Quarter is quite unbelievable.”
There really is a Costa Blanca beach house vibe to this bright, new yellow-accented corner of NQ and having tried some of their dishes, we can’t wait to get stuck in.
Be sure to follow them on socials too, not only for more announcements and updates but because it’ll give you an even better flavour of the vibes over there.
Georgina Pellant -
23rd February 2023 
