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
Michelin Bib Gourmand restaurant team to take over iconic NQ venue
Daisy Jackson
The team who earned Cantaloupe a Michelin Bib Gourmand are moving into Manchester city centre – and into a site we all know pretty well.
The Cantaloupe team are about to embark on a new venture with Rasade, a new French restaurant in the site of the former TNQ in the Northern Quarter.
The old neighbourhood restaurant announced its shock closure earlier this year, after more than two decades serving Manchester.
But now the beautiful corner building on High Street is under new ownership, and in very safe hands.
Shortly after pivoting Cantaloupe into Bar Caput (a more casual neighbourhood offering), the duo behind it, Joshua Reed Cooper and Mike Thomas, have announced they’re launching Rasade in Manchester city centre.
Rasade in French refers to a glass filled to the brim, traditionally of wine or another drink.
The new French restaurant will showcase regional French cooking and seasonal local produce, drawing inspiration from France’s diverse regions.
This won’t be a stuffy French restaurant though – they’re aiming to create the relaxed spirit of a bistro with their serious commitment to traditional cooking.
Early menus show dishes like oysters with mignonette, langoustine with Karri-Gosse, and pâté de campagne, plus brill with rancio sec and mushroom fricassée, and pork chop with garniture Mirabeau.
And as for desserts, expect classics like a tarte Tatin designed for two to share, alongside flan pâtissier and Opéra religieuse.
Alongside the cooking, an extensive French wine offering will span the many, many wine regions of the country, featuring both small and unusual producers as well as more established names.
Mike and Josh now want to build on the success they quickly found in Stockport with this new city centre venture, bringing the same focus on good produce, thoughtful cooking and an informal approach to hospitality.
Rasade will open at 108 High Street in the Northern Quarter later this year.
First look inside Social Osteria, Stockport’s buzzy new Italian restaurant
Lydia Mastrolonardo
That’s right Stopfordians – we’re gaining yet another brand new addition to our town’s blooming food and drink scene, as Social Osteria opens its doors at Weir Mill.
It’s safe to say we’re in good hands, with the geniuses behind The Social Trattoria, named best Trattoria at the Italian Awards UK 2025, being the ones to bring this new taste of Italy to South Manchester.
Just because we are no longer experiencing the weather to match an Italian summer, doesn’t mean we can’t continue eating like we’re there.
Social Osteria can now be found overlooking the River Mersey, as a beautiful 2,000 sq ft space within the buzzing new canalside development, fully equipped with the classic exposed red brickwork, vaulted ceilings and even the restored original kiln.
As you approach the restaurant, you are greeted by a sunken courtyard and riverside seating, making for the perfect alfresco dining spot, when the warmer weather finally rolls back around.
With the meaning of Osteria being an Italian tavern, for locals to gather and enjoy each other’s company, good wine and honest, flavourful food – the team have stayed true to the name. You can expect dim, ambient lighting, an open kitchen, fresh small plates, flavourful 48-hour pizzas, and traditional pasta.
Vibrant dishes at Social Osteria in Stockport. Credit: The Manc Group
This glamorous new restaurant is promising a spectacular menu, from cacio e pepe butter beans to guanciale topped pizzas and their very own slow-cooked beef shin and pork shoulder paccheri ragu, you know we’re in the right place.
With Italian food running in the family, the team’s cooking practices are rooted in traditional methods, passed down through the generations and then presented to us, with the freshest of ingredients.
It suits Capital&Centric, who’ve taken the same approach to Weir Mill itself – embracing the character of the historic mill whilst transforming it into a vibrant community, for generations to come.
Inside Social Osteria at Weir Mill. Credit: The Manc Group
Set below Stockport’s iconic viaduct, the £60m neighbourhood is now home to 253 apartments alongside bustling cafés, wine bars and stunning restaurants akin to Social Osteria, accompanied by plenty of outdoor seating, green spaces, and riverside viewpoints.
Where Osteria Social now calls home is part of Stockport’s £1 billion Town Centre West masterplan, adding to the town’s growing reputation as one of the best locations to live in the UK.
Social Osteria will officially open Thursday 22 October, at Weir Mill. Be sure to book your tables early as we fear this one might get a little booked up.
Georgina Pellant -
23rd February 2023 
