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
A restaurant in Ancoats is serving up plates of crispy fried squirrel
Georgina Pellant
A Manchester restaurant is serving up plates of crispy fried squirrel – and their customers absolutely love it.
Taking game dishes to a whole other level, the wild crispy buttermilk fried squirrel at Ancoats restaurant Street Urchin comes served atop a creamy pulled ham hock cassoulet, with hazelnut bread croutons and nettle pesto and costs £22.50.
Sourced from their game supplier in Cumbria, it might sound nutty but owner Rachel Choudhary told The Manc that the dish has proven incredibly popular – and that the team has been ‘really surprised’ at how much of a hit it has become with customers since adding it to the menu.
She said: “We were looking for something new for the game options on the menu. Kev was speaking to our game supplier and randomly asked if he had any grey squirrels. Happily, he did.
“The whole team tried the dish the day it went on and the majority thought it was really good.
Wild crispy buttermilk fried squirrel with creamy pulled ham hock cassoulet, with hazelnut bread croutons and nettle pesto. / Image: Street Urchin
Image: Street Urchin
“We weren’t sure if it would sell, but have been really surprised. So many people have tried it and given good feedback. We’ve recommended that they eat it like chicken wings and pick it up, that way you get most of the meat.
“I’d never tried squirrel before and I absolutely loved it, it has great flavour, rich buttery texture, and it’s wild, free-range meat.”
The gray squirrel currently has an estimated population of 2.5 million in the UK according to the Game and Wildlife Conservation Trust and is considered a good sustainable alternative to factory-farmed meat.
It is legal to control grey squirrels by shooting or trapping them in the UK in a humane manner and even helps protect the UK’s endangered native red squirrel population.
Whilst some might find the idea of eating squirrels a tad unappealing, many chefs argue it is better to eat them when culling as it means the meat does not go to waste.
Fresh clams, homemade chorizo, fennel and white bean cassoulet, garlic crouton. / Image: Street Urchin
Whole red mullet, warm red pepper and olive salsa, battered potato scallops. / Image: Street Urchin
English market diner Street Urchin was first opened on Great Ancoats Street in 2019 by husband and wife team Rachel and Kevin Choudary.
Prior to opening in town, the couple ran The Victoria in Altrincham for eight years before deciding that it was time to move on.
Their Ancoats market diner has made its name on being one of the few city centre restaurants specialising in fresh fish, with everything from clams and mackerel to cured chalk stream trout, king scallops, and whole grilled red gurnard regularly available on the menu.
Whilst the fish board is the main attraction, however, there are other dishes to explore on the daily-changing menu too – with game meat a popular choice whenever it is in season.
Featured image – Street Urchin
Eats
Gary Neville comes to woman’s rescue at Manchester restaurant Fazenda
Georgina Pellant
Gary Neville has proven himself the utmost gentleman after coming to the rescue of a disabled woman who was struggling to walk to a restaurant in Manchester on Mothering Sunday.
The football pundit spotted Ann Knowles, 67, struggling to walk to Brazilian steakhouse Fazenda in Manchester’s Spinningfields and took it upon himself to come to her aid.
After approaching her and offering a lift, the former Manchester United star helped her into his car and then provided door-to-door service to the restaurant, walking her the last part of the way.
Ann had been on her way to meet daughter Samantha Ward, who was inside the restaurant when she received a phone call to tell her how the ex-footballer had saved the day.
She told BBC News: “I was upset thinking we’ll have to forget dinner, but then my daughter rang and said ‘it’s ok Gary Neville the footballer is taking her’ and I was like ‘what?'”
Image: Fazenda
Image: Gary Neville
“I said the actual footballer? Where did he come from? And she said he just appeared out of nowhere, obviously saw them struggling and said ‘you need help’.
“So he physically picked her up and gave her a lift to the door in this car.
“He delivered her to the restaurant and saved Mother’s Day.
Georgina Pellant -
23rd February 2023 
