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
Beloved Manc butty shop Bada Bing set for a sensational return to the city centre
Danny Jones
Sandwich lovers rejoice because one of the finest butty shops to ever grace Manchester is returning: that’s right, Bada Bing is bada-back!
The Sopranos-inspired deli and sandwich shop that took its name from one of the central locations featured in the iconic US drama (yes, the strip club), was a huge success when it first opened in Manchester a few short years ago, so it was a huge blow when it closed in February 2022.
Starting out by serving sandwiches out of a window at The B Lounge pub on Paton Street near Piccadilly, before moving to a small kitchen on Radium Street and eventually setting up their stall inside Ancoats General Store, they would regularly have lines around the block every lunchtime.
These Italian-American sarnies were so popular you’d often struggle to get your claws on one – and believe us, they really are a two-handed task – as they’d sell out on what felt like most days. But now, whether you were a regular or someone who missed out, there is hope once again:
Announcing their sensational return to a new site over in the Northern Quarter, which will now mark the fourth premises they’ve popped up at, Bada Bing is back with a bang and, as you can, they dropped the news with one of the best reveal videos we’ve ever seen.
If you know, you know…
Set to take over 125 Oldham Street, owners Sam Gormally and Meg Lingenfelter haven’t yet graced us with an opening date but the new unit should hopefully be open sooner rather than later.
The duo, who previously worked at fellow NQ favourite Another Heart to Feed, came up with the concept during lockdown and it didn’t take long for the idea to take off, nor for them to earn their spot amongst the very best sandwich places in Manchester.
Seriously, these things were so big and unwieldy (in the best way possible) that they even used to come with eating instructions: both hands and the trademark Tony Soprano hunch recommended, though the slightly stained wife-beater, boxer shorts and open dressing gown look is optional.
From slices of provolone cheese, all the thinly sliced Italian meats you could think of and the closest thing to actual ‘gabagool‘ as you’ll find in Greater Manchester, the menu was fitting of being served up to the iconic characters that once sat outside Satriale’s and a big approving grin from the man himself.
Simply put, we cannot wait and we will certainly keep you posted when we find out exactly when Bada Bing confirms their official reopening date.
Burger King is giving away free burgers to new drivers today
Emily Sergeant
Burger King will be giving away burgers to drivers who have recently passed their tests for free of charge today.
In case it wasn’t on your radar, tomorrow (Thursday 24 July) is actually National Drive-Thru Day, and in a bid to properly celebrate this unofficial holiday, Burger King has decided to hand out a bunch of freebies to newbies today.
The fast food chain is asking all new drivers to “buckle up”, head on down to their nearest Burger King drive-thru, and help themselves to a free burger.
All newly-qualified drivers will be able to take their pick from either the Whopper or Chicken Royale without parting ways with a penny, and all they’ll need to do the claim their freebie is simply show off their learner’s ‘L Plates’ to the staff at their local Burger King restaurant.
/ Credit: Burger King UK (via Instagram) | Supplied
Hundreds of Burger King drive-thrus across the UK are taking part in the one-day promotion – including several across in Greater Manchester.
Although it might seem a little too good to be true, there’s a reason Burger King has chosen to dish out the freebies, and that’s because the company says it knows that one of the first activities newly-qualified drivers like do once they’ve passed their test is make a pit stop at a drive-thru with their mates to show off their new wheels and skills.
Sometimes though, navigating a drive-thru for the first time can be tricky, and this leaves new drivers feeling a bit like a rabbit in the headlights.
Luckily with this one-day Burger King offer, new drivers’ first drive-thru trip couldn’t be any easier.
The offer is available nationwide today (Wednesday 24 July) at Burger King drive-thru lanes only, while stock lasts, and newly qualified drivers must verbally mention “BK Plates” at the drive-thru lane to unlock their free burger.