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
One of Manchester’s best restaurants is opening a ‘bread kitchen’ in Exhibition food hall
Daisy Jackson
A Michelin guide restaurant in Manchester is branching out with a new project, and this time it’s all about bread.
The team behind Another Hand will be taking over one of the kitchens in food hall Exhibition, launching Jaan, which will specialise in Persian cooking.
The new bread kitchen will focus on Wildfarmed House Flatbreads, which will come with an array of seasonal toppings.
And a lot of the produce heading to the Jaan kitchen at Exhibition will be taken from what’s not used at Another Hand around the corner.
For example, a whole sirloin that’s used for Another Hand’s ex-dairy sirloin dish will provide meat trimmings that will be turned into Jaan’s beef tartare.
The tail and trim from Another Hand’s seared trout will head to Jaan to be used in a fire-roasted sea trout fatoush salad.
And the two restaurants will share other bits of produce too, like a squash that will go into both a Winter Squash small plate at the main restaurant and a scorched summer squash dish at the food hall.
Another Hand’s famous flatbreads will be the staple on the menu at Jaan, which is moving into the beautiful kitchen on Peter Street hot on the heels of the departure of Rigatoni’s.
Jaan is a new Persian bread kitchen from the team behind Another Hand restaurant in ManchesterJaan will specialise in flatbreads
Since it launched in 2022, the restaurant’s become known as one of Manchester’s best, even earning a place in the Michelin guide.
It’s famed for its sharing plates, as well as the team’s efforts to drive sustainable practices, sourcing produce from across the north west.
Most ingredients used in the restaurant have travelled no more than 40 miles, and the bread comes from Holy Grain while the chocolate comes from Dormouse, both right next door.
Jaan will be moving in to the Exhibition food hall in Manchester
They hope that Jaan will help their sustainable credentials even more, allowing them to use up almost every scrap of produce.
Small plates will all be served with house flatbreads, and toppings will include smoked aubergine, whipper butterbean, black garlic cheese bread, ex-dairy beef tartare, and ras el hanout spiced lamb.
And larger plates will include slow-cooked lamb shank with ancient grains, grilled octopus and nduja, and chermoula chicken rice.
Chef patrons Max Yorke and Julian Pizer said: “We feel extremely privileged to be offered the opportunity to cook alongside Osma and Baratxuri at Exhibition Manchester.
“Over the last few years our small 24 cover restaurant has generated a large waitlist and we are excited to showcase our new concept to a wider audience.
“Most importantly, as we make more steps to improve our environmental standards, our food waste systems showed an obvious area in which we could develop.
“By opening a second kitchen in such a fast paced venue we can take unused produce from Another Hand and even further reduce, and hopefully eradicate, our wastage.”
Jaan Persian Bread Kitchen will open within Exhibition on 8 May, joining Osma and Baratxuri on the venue’s restaurant floor.
Gary Neville lines up Michelin star chef for his Stock Exchange Hotel restaurant
Daisy Jackson
Gary Neville has announced a new restaurant within his five-star Stock Exchange Hotel, which will open almost a year after the previous eatery announced its shock closure.
The magnificent dining room at the heart of the hotel was previously home to Tom Kerridge’s The Bull & Bear, which closed at the end of 2022.
It was then replaced by Stock Market Grill, a restaurant by the award-winning Schofield brothers (who operate officially the best bar in the UK) – but that was open for only a matter of months.
Thankfully, the Manchester United legend and property mogul now has grand plans for the Stock Exchange’s restaurant offering, roping in two-time Michelin star chef Niall Keating.
Niall will be launching Tender this summer, a luxury dining experience ‘named after the tender care put into crafting each dish’.
There’ll be gourmet food for everyday dining within the hotel’s historic dining room, which will undergo a renovation before Tender’s launch.
Its menu will offer weekday brasserie lunches, a la carte dinners, afternoon teas, Sunday roasts, a chef’s table and a special tasting menu.
The Stock Exchange Hotel is home to one of Manchester’s most beautiful restaurant spaces. Credit: The Manc GroupThe Stock Exchange Hotel is home to one of Manchester’s most beautiful restaurant spaces. Credit: The Manc Group
Niall Keating at just 33 years old has already earned two Michelin stars, making him one of the youngest two-time Michelin star chefs in the UK.
His CV has included stints in kitchens at the best restaurants in the world, including Restaurant Sat Bains and Benu in San Francisco (a three Michelin-star spot).
He then headed to The Dining Room at Whatley Manor Hotel, where he earned his first star in 2017 and a second in 2019, as well as a prestigious Green Star in 2021 which recognises sustainability practices.
Speaking about today’s announcement, Gary Neville, owner of Stock Exchange Hotel, said: “We couldn’t be happier to be partnering with Niall Keating for Tender and bringing his culinary expertise to the hotel.
“His vision to create versatile and accessible dining options is exactly what we’ve been looking for, to allow everyone visiting Tender to find the right experience for them.”
Niall Keating added: “From when I first walked through the doors of the hotel into the dining room, I knew this was the place for me and that we could create something really special.
“I immediately felt connected to both Gary and General Manager, Tracy Harrison, and I knew what I wanted to create at the hotel and restaurant. I want a space that feels vibrant, warm and energetic, that brings to life the history of the stock exchange roots of the hotel, while providing an upscale and comfortable brasserie dining experience.
“In addition to the main dining room, we will also be opening ‘The Bank’, which is a beautiful private space for up to 12 guests, where we will be providing a truly exceptional dining experience.”
Gary added: “We will also shortly be announcing a series of events and live music experiences, including a weekly music plan, within Tender, that will really bring the venue to life, making it the heart of Stock Exchange Hotel.”
Tender restaurant at the Stock Exchange Hotel will officially open on 5 June.
Its opening hours will be Wednesday to Saturday, midday to 10pm, and Sundays midday to 7.30pm.
Georgina Pellant -
23rd February 2023 
