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
Eats
I went all the way to Paris to test out Big Mamma ahead of Manchester’s most exciting new restaurant opening
Daisy Jackson
Hospitality heavyweights Big Mamma Group are finally heading to Manchester, opening a Circolo Popolare Italian restaurant in the city centre – so we nipped over to Paris to see exactly what’s in store for us.
In the 10 years since launching their very first restaurant, East Mamma in the 11th arrondissement of Paris, the group have spread their wings wide.
There are Big Mamma Group restaurants, under several different names, all over Europe – and although they all belong to the same family, each one is treated like a total individual.
Some have maximalist, kitsch interiors with animal print furniture, gilded ceilings and retro prints of men in Y-fronts; others are more traditional trattorias with exposed brick, terracotta floors and crisp white tablecloths.
These interiors are fun, which is so refreshing in an industry which sometimes takes itself a bit too seriously.
On our tour of Big Mamma restaurants in Paris I came across delightful details like a loo wallpapered in pictures of Rod Stewart, a cocktail menu designed like a retro football sticker book, and an ice cream parlour built into an old train station carriage.
Every corner is packed with whimsy and wonder and there’s a whole team dedicated to sourcing these little touches from antiques fairs, second-hand shops and independent makers, stashing them all in an Aladdin’s Cave of a warehouse. Each restaurant even has its own crockery pattern.
East Mamma, one of Big Mamma’s Paris restaurantsNo Entry cocktail barA Big Mamma speakeasyPink MammaLa Felicita food hallLa Felicita food hall
So yes, the interiors in Manchester will be similarly interesting and lavish.
Big Mamma Group has already confirmed that the huge two-storey Circolo Popolare trattoria will be inspired by a Sardinian Festa, meaning cosy alcoves, more than 8000 bottles of vintage booze, and a vast room inspired by an overgrown Mediterranean courtyard.
As it takes shape in Gary Neville’s £400m St Michael’s development, they’ll be moving in big sharing tables, antique trinkets, reels of twinkling lights and even an Italian wishing well ahead of the big launch next month.
But not enough of us are talking about the food yet – this is a restaurant group that sources its produce from 160 different Italian artisans to ensure that everything you’re eating as authentic and delicious as possible.
Food at Big Mamma
While the menus shift between restaurants you can expect hearty bowls of handmade pasta laced with truffle or tomato or cheese, crispy-soft pizzas layered in creative sauce bases (like zucchini cream or black truffle cream, along with their classic San Marzano DOP tomato sauce), and per iniziare starters like giant burrata balls, melt-in-the-mouth croquettes, and slivers of cured meats – all prepared in an open kitchen run by Campanian-born Alfonso Esposito.
And a show-stopper for Manchester will be an outrageous six-inch lemon meringue pie, with a wibbly wobbly tower of Italian meringue on top.
Circolo Popolare will officially open its doors on 6 June – and before then, there’ll be a very limited soft launch where you can snag yourself 50% off your bill. Sign up HERE, with bookings live on Monday 12 May.
The massively underrated rooftop terrace in Manchester with great views and top cocktails
Daisy Jackson
Manchester city centre is generally STARVED of outdoor space, but we’ve found the perfect sun-soaked oasis where you can enjoy a bit of fresh air and a whole lot of great food and drinks.
Tucked up on the sixth floor of the award-winning boutique hotel King Street Townhouse, you’ll find a rooftop terrace with beautiful views of the city’s skyline.
As Manchester buzzes along beneath you, you can tuck in to everything from full charcuterie grazing boards to seasonal snacks and small plates, all served alongside an impressive wine and cocktail list.
This often-overlooked local spot is a firm favourite of those in the know, thanks to its sheltered location that basks in the sun all afternoon.
And although it’s in a prime city centre location, just a stone’s throw from Deansgate, St Peter’s Square and Market Street, it’s a luxurious escape from it all – as is the entire boutique hotel it’s part of.
Whether it’s a post-work social, a relaxed date night, or a cheeky afternoon cocktail, the King Street Townhouse Terrace is open to the public and available for walk-ins or bookings when it isn’t privately hired.
On the menu you can expect locally-sourced dishes like Pollen sourdough served with whipped butter, a meat or cheese grazing board loaded with British produce, and larger plates like a beef and bone marrow burger or a fried fish roll topped with crisps.
British charcuterie grazing boardSpritzes on the King Street Townhouse terrace
Pairing perfectly with a spritz or a beer are snacks like deep-fried Gordal olives, stuffed with fennel sausage, and a brioche garlic bread packed with cream cheese.
The hotel has a cocktail list that celebrates classic drinks and a few of their own signature concoctions, and it doesn’t feel much more luxurious than when you treat yourself to a glass of sky-high champagne with views like this.
The South Terrace can also be hired privately for leisure or corporate events, with tailored catering options including summer BBQs.
And you can ramp up your trip to this oasis by staying overnight in one of the boutique hotels’ rooms, or visiting the King Street Townhouse ESPA spa for a treatment.
Find out more about the terrace at King Street Townhouse HERE.
The terrace at King Street Townhouse hotelThe terrace at King Street Townhouse hotelDeep-fried olivesGarlic bread with creamed cheeseKing Street Townhouse hotel
Georgina Pellant -
23rd February 2023 
