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 huge festival dedicated to tequila and mezcal is coming to Manchester this month
Daisy Jackson
Manchester’s first-ever Mezcal and Tequila Festival is taking place this month, filling Manchester Cathedral with tastings, masterclasses, cocktails and street food.
The massive event will see the Grade I-listed building transformed into an agave spirits tasting floor, featuring more than 100 varieties of premium tequilas and mezcals from some of Mexico’s best producers including El Jimador, Ojo de Tigre, El Sueno, Los Arcos, Del Maguey, Cazcabel, Komos, Nixta, Tapatio, El Tequileno, Tiempo and many more.
Festival-goers will be able to gain exclusive insights into the craftsmanship behind these spirits, sampling (responsibly, of course) from dozens of stands.
All samples, plus a limited-edition clay tasting copita, will be included in the ticket price – there’s no token system here and no extra charges for samples.
The new Mexican-inspired drinks festival only debuted in Glasgow back in Spring 2023 but it unsurprisingly went down an absolute storm – after all, what’s not to like a big festival full of booze?
Bartenders will stir up cocktails at the bespoke cocktail bar while the crowds are kept fed by delicious street food, including Mexican-inspired Taco Or Don’t, previously featured at the British Streetfood Awards.
And it’d be remiss of you to leave the festival empty-handed when you can take a taste of Mexico home from the exclusive bottle shop provided by Drinkmonger on site (with discount tokens included in the ticket price).
A tequila and mezcal festival is heading on Manchester. Credit: Supplied
Colin Campbell, one of Copita’s co-founders said: “We’re really excited to be bringing Copita to Manchester. It’s gone down brilliantly in Glasgow the last two years so we felt now was the right time to take it on the road and we couldn’t think of a better place than Manchester to head to next!
“It’s a really easy-going event with a great atmosphere, lots of local street food, shopping and music, so whether you’re an aficionado or a casual sipper we’re confident you’ll have a great time.”
The Copita Mezcal and Tequila Festival will be at Manchester Cathedral on Saturday 14 September.
Lina Stores – Italian deli restaurant serving homemade pasta and more is heading to Manchester
Daisy Jackson
Lina Stores is set to open its very first restaurant in Manchester early next year, taking its beloved mix of handmade pasta and deli food outside of London for the first time.
80 years after opening for the first time in Soho, Lina Stores is heading north to open a 150-cover restaurant.
Blending coffee shop, delicatessen, restaurant, and bar, the new space will be styled in traditional Lina Stores shades of pastel green hues, warm timber woods, and terrazzo and timber flooring.
You’ll find bespoke marble tables, original vintage Bentwood chairs, dark green booth seating and opaline globe lighting inspired by the original Brewer Street delicatessen.
Diners will be spoilt with an Italian-inspired breakfast menu, featuring dishes like truffle scrambled eggs with toasted sourdough, Greek yoghurt with Italian Macedonia fruit salad, and a selection of breakfast panini.
At lunchtimes and dinner there’ll be antipasti such as ricotta and herb gnudi fritti with Calabrian chilli marmellata, and tuna crudo with capers, pink peppercorn and salsa verde.
Lina Stores Manchester will have the brand’s beloved pasta dishes, such as the 30-egg yolk taglioni with black truffle, and lamb sausage ragu pappardelle, plus new options like lemon sole and potato raviolo.
For secondi (because this is Italy darling, you can have two mains!) there are dishes like chicken Milanese and Luganega fennel sausage.
And for dessert, it’s set to be a feast of Sicilian cannolo (filled with ricotta, pistachio and chocolate) and tiramisu.
Lina Stores – Italian deli restaurant serving homemade pasta and more is heading to Manchester. Credit: Rebecca Hope
In the open-plan delicatessen, you’ll be able to grab filling salads, freshly-made panini, and delicate cakes and pastries.
Shelves will be stocked with Lina Stores Collection pantry essentials, from olive oil to traditional biscotti.
And just next to that will be Bar Lina, serving classic and modern Italian cocktails for aperitivo hour until late at night.
Expect favourites like the bloody martini, Rinomata americano, and the basilico with gin, vermouth, basil and lemon.
The bar will have a versatile wine list from all corners of Italy, including the brand’s own signature collection.
Lina Stores Manchester will be located on Quay Street in the recently-refurbished Quoin building, right opposite the Opera House theatre.
Masha Rener, Head Chef of Lina Stores, said: “We’re extremely excited to be opening in Manchester this spring.
“The city feels like a natural home for us considering the area’s rich history, vibrant culinary scene and lively nightlife, and look forward to sharing our passion of great Italian food and produce with the Manchester community.
“Quay Street is the perfect location for us to do so, sitting right in the trifecta of Spinningfields, St John Street and St Peter’s Square.”
Georgina Pellant -
23rd February 2023 
