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.
ADVERTISEMENT
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.
ADVERTISEMENT
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.
ADVERTISEMENT
“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
Legendary Hulme community pub The Old Abbey Taphouse to reopen
Daisy Jackson
The closure of The Old Abbey Taphouse was a real blow for Hulme – the community pub was a bit of a local institution thanks to its grassroots music and inclusive atmosphere.
But now it appears that the spirit of the venue will live on, under the new name of The Abbey.
Some of the city’s most experienced independent operators – who have been behind venues like YES and The Deaf Institute, and music promoters Now Wave – will be the new custodians of this beloved local landmark.
The pub, which closed early last year, is currently being carefully restored ahead of its big relaunch just next week.
The vision for its new chapter will be ‘Old Pub, New Music’, creating a new home for grassroots live music and emerging artists.
There’ll also be affordable, hearty pub grub including Pieminister pies, and a huge range of beers from local breweries and beyond.
The team bringing The Abbey to life are Ruth Hemmingfield, Wesley Jones, Jonathan Wickstead and Gareth Butterworth – Ruth, Jon and Wesley are co-owners of YES; Ruth previously launched and programmed landmark Manchester venues including The Deaf Institute, Gorilla and Albert Hall; while Wesley and Jonathan, through Now Wave, promote hundreds of independent gigs and live events each year; and Gareth is the founder of multi-venue festival Manchester Psych Fest.
The team behind The Abbey pub. Credit: Piran Aston
The rear of the site of The Old Abbey Taphouse will be extended to create a new dedicated live music and events venue, while the cherished beer garden is given a facelift with new decking and its own bar.
The Abbey has stood in Hulme since the 1890s, playing an important role in the area’s heritage – this is where activist Len Johnson managed to overturn the shameful ‘colour bar’ policies of the 1940s.
Its restoration and relaunch is part of the flourishing Manchester Science Park development.
Matthew Pazos, Senior Retail Commercial Manager at Bruntwood SciTech, said: “Ruth, Wesley and Jonathan are the perfect custodians to breathe new life into The Abbey.
“Their reputation for running independent spaces in Manchester, alongside their live music expertise, will ensure this much-valued pub once again becomes a beating heart for Hulme and the wider neighbourhood.
Glimpses of The Abbey’s refurb. Credit: The Manc Group
“The reopening of The Abbey will create an inclusive new hub that welcomes everyone – from the Hulme locals who have looked after the pub over the years, to the Manchester Science Park community, university students, and the many residents and workers across the Oxford Road Corridor.
“We are delighted that such a culturally significant and important pub is set to open its doors once again.”
Ruth Hemmingfield from The Abbey commented: “We love a good pub. With The Abbey, we’re excited about bringing a brilliant old pub back to life, protecting what people loved about it, and creating something special: a great local, alongside a vital grassroots music venue for the area. Honouring the pub’s history while building its future.”
Saddleworth’s new sandwich bar and kitchen with Michelin credentials
Daisy Jackson
It’s not every day you come across a sandwich with *20* different elements inside – but that’s what’s on the table at Fjord, Saddleworth’s newest opening.
This new sandwich bar and kitchen is tucked above barbershop and hair salon Ruger, and is the first solo venture for chef Kieran O’Reilly.
Kieran’s trained in Michelin kitchens across the North West, including Mana and The Forest Side, and wants to apply that level of meticulous prep to the humble butty.
That means sandwich fillings of impressive complexity, like a shallot confit cooked for nine hours, homemade tomato vine oil, a moreish bacon jam, stracciatella laced with confit garlic and lemon zest, and in-house miso.
And Kieran thinks he and his right-hand man Charlie might have actually invented a new bread for Fjord sandwiches – a puffball, pan-fried focaccia that’s thinner, lighter, and more manageable than its big sister.
Fjord wants to bring Scandinavian simplicity with Italian flavours to Lees, taking over the former Kobe space on Yorkshire Street.
Fjord is making homemade puffball focaccia for its sandwichesMichelin-trained chef Kieran O’Reilly
There’ll be refined brunches in the mornings with Ruger’s own coffee blend, before the offering pivots to Sandi-Italian focaccia sandwiches in the day.
And there’s a beautiful terrace aiming to bring a dose of Sorrento to Saddleworth, designed for long lunches, limoncello spritzes, and sunshine.
In the evenings, Ruger Fjord will shift into a spritz bar and small plates restaurant.
Kieran has credited his long-time friend and mentor Alan Beak for helping to bring the project to life, saying: “Alan has backed me for over a decade – from cutting my hair after school to supporting this opening. Ruger Fjord wouldn’t exist without him.”
Georgina Pellant -
23rd February 2023 
