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
The Didsbury Dozen loses one of its best as The Dockyard confirms closure
Danny Jones
The Didsbury Dozen has lost one of its strongest stops as the much-loved Dockyard sadly closed for good this past weekend.
A favourite among those taking on the popular Greater Manchester pub crawl and a busy bar in its own right along the main Didsbury Village strip, The Dockyard has been a staple of South Manchester boozing for some time.
However, it’s time as part of the Dozen and in the heart of the community has come to an end, with the staff having completed their final service on Sunday, 19 January.
Sharing a short but heartfelt goodbye on social media, they welcomed customers to join them one last time “to raise a glass and say cheers!”.
An unreal beer garden too. (Credit: The Manc Group)
The post begins: “Right Didsbury… Thank you so much for your welcome and custom when we arrived here in the village, but the time has now come to say goodbye. We have had a blast over the last four years and we hope you have too!”
Although many relatively new to the area or at least its drinking scene will only know it as The Dockyard, the venue has actually been under a lot of names over the years.
Originally known as Times Square, it was then refurbished into a branch of O’Neills in 1996 before going on to re-open as The Stokers Arms in 2014.
Nevertheless, it maintained a regular and loyal following as The Dockyard and many will be “sorry to see it go”; one person commented: “Oh no! We had a fab time in here over Christmas and [were] hoping to return soon. Sorry to see you go and I will be visiting your other sites.
Thankfully, they did go on to confirm that the remaining pubs in Salford Quays and Northwich will remain open – as is the Left Bank location in Spinningfields overlooking the River Irwell. Better still, the building itself will still remain a pub and we already know what’s taking its place:
Although there is still no news on when we can expect to see The Salmon’s second venture launch, if it’s anything like the success the Northern Quarter one has seen then we’re in for a treat.
So don’t worry, The Didsbury Dozen may have taken a hit but it’s still intact and there are plenty of other pubs you can work into the crawl in the meantime.
For now, though, all we can say is rest in peace to The Dockyard Didsbury, you were a real one – we’ll always have the memories.
Michelin guide Prestwich restaurant Osma announces heartbreaking closure
Daisy Jackson
Osma, a beautiful, Michelin-recommended restaurant in Prestwich, has announced its closure next month.
The Scandi-esque restaurant has been a front-runner of Prestwich’s ever-growing food and drink scene since it opened in 2020.
Fronted by Manchester born Danielle Heron, who you might recognise from the Great British Menu and MasterChef: The Professionals 2024, alongside Sofie Stoermann-Naess.
Osma has been a favourite among Prestwich locals over the last five years, famed for its inventive small plates and delicious Sunday roasts – but now its time in the suburb has come to an end.
In a statement shared online, Osma said that they have ‘struggled to find experience staff, leaving us with little to no personal life’.
The restaurant has teased a move into the city centre, where it’s hoped the business will be more sustainable and ready to grow.
“This is by no means the end of Osma,” they wrote.
Their kitchen at Exhibition in the city centre will remain open even after Osma in Prestwich closes on Sunday 9 February.
Osma in Prestwich has announced its closure. Credit: Instagram, @osmakitchenbar
Other food and drink businesses in the village have all been sharing farewell messages, with The Pearl commenting: “Prestwich’s foodie foundations will be very wobbly without the OG cornerstone that welcomed the ‘foodie neighbourhood’ accolades. Good luck in town both, we’ll definitely come and visit the new place.”
Whole Bunch Wines, formerly known as Grape to Grain, said: “Absolutely devastating news for Prestwich. A HUGE loss but a sign of their quality that they’re forced to move.”
Osma’s full statement reads: “Neighbours & Friends. We’ve spoken with some of you already, but it’s time to make it official. It’s with a heavy heart, but excitement for the future, that we have decided to close our Prestwich restaurant ahead of a move to the city centre.
“Being fully transparent – we’ve struggled to find experienced staff, leaving us with little to no personal life. We have made the decision to move on to what we hope will be a more sustainable business that can grow, and allow us more time to follow our dreams. This is by no means the end of OSMA.
“We’re optimistic, but it’s bittersweet. After (almost!) five years we have met so many amazing and incredible people, who we’re proud to call our friends and OSMA family. So many of you have kept coming back week after week – we feel honoured and so grateful for your company. There have been hard days over the years and your kindness, patience and good moods have made such an impact on us to keep pushing forward. Thank you! 🙏🏼
“Of course, we wouldn’t be able to do what we do without our one-of-a-kind staff. Your efforts make OSMA what it is. Even when so understaffed, you all keep moving and help each other get through the day as a team. There’s not many of you, but what you guys can achieve is incredible!
“Lastly, we want to thank our landlord, Tony Freeman, for taking a risk on two 26-year-old girls wanting to open a restaurant. OSMA wouldn’t be here today without him believing in us. You will live on in our memory forever.
“Our last day of service will be Sunday, 9th February. Bookings are open now and we’d love to see as many of you as possible before we go. Stay tuned on our socials as we’ll be throwing a leaving party, too.
“A little housekeeping… gift cards bought after the 9th of Feb 2024 may be refunded to the original payment method, or extended to use at our new site (to be valid for one year after the opening date). Our Kitchen at Exhibition on Peter Street will also remain open as usual, so please don’t be a stranger.
“We appreciate every single one of you… and we’ll be back before you know it! Love Dani & Fie x”
Georgina Pellant -
23rd February 2023 
