Welsh Government under fire as café closes its doors
AN AWARD-WINNING cafe has closed its doors amid accusations of broken Welsh Government promises to further develop Swansea’s SA1.
Husband and wife team Dennis and Catherine Cann launched Café TwoCann in the red brick J Shed building next to Kings Road in April 2007.
The business – a café by day and restaurant by night – went on to win numerous awards, culminating in an inclusion in this year’s UK Good Food Guide and taking the title of Cafe Culture winner in the 2017 Swansea Life Awards. But this week they made the decision to shut up shop. The couple identified a series of reasons for the change, but said they primarily blamed the Welsh Government for not developing the site as per their 2007 promise.
Other factors include other businesses moving out of the area, empty offices premises (its neighbouring unit has been on the market by Welsh Government for 18 months), an increase in business rates by £400 a month, increased water rates, a rise in workplace pensions and increases in living wage and a lack of footfall in the area.
The couple also said they lost customers to the new eateries in the Oyster Wharf development in Mumbles.
Mr Cann said: “We started the business on the premise and with a promise from the Welsh Government that the SA1 development would develop into a vibrant location with numerous leisure facilities, the expansion of the Kings Dock, as well as hospitality and retail outlets, in short: the place to be.
“None of this has happened and those that have opened have either shut down or moved away.
“In the past year some of our key customers moved off site and our sales have dropped substantially during the first six months of 2017 to the extent we can no longer trade.
“We have continually ploughed more and more funds into the business, but the downturn in the past six months means we cannot continue to weather the storm any longer.
“Finally, we would like to thank all our customers and suppliers which have supported Café TwoCann over the past 10 years and we are devastated we have had to make the decision to shut down the business.”
They will continue to run a catering operation from a separate location on the Enterprise Park and a small café operated and run on behalf of The Rectorial Benefice of Aberavon in Port Talbot.
Lawrence Bailey, who was the leader of Swansea council when the SA1 development began to take off and now runs White Rock, a specialist public affairs consultancy, said: “I’m really sorry to hear about the closure of Café TwoCann. The venue quickly established itself as part of SA1 Waterfront. I always saw it as a success story while other establishments have come and gone in quick succession.
“I think the problem is that mounting costs have clearly taken their toll while private and corporate custom is much thinner on the ground.
“On top of that, the job of promoting and marketing SA1 as a destination – rather than a residential quarter – has fallen between two stools.
“The Welsh Government no longer sees itself in that role while the council is understandably concentrating efforts on the city centre. The local business club is doing what it can to press for better access, more parking and investment, but it is going to need a solid action plan to address matters.”
A spokeswoman for the Welsh Government said: “We are always sorry to hear that any business has had to close because of financial difficulties. We would stress that the development of SA1 has progressed well and in line with our expectations and that all available land at SA1 has now either been sold or is under offer to developers.
“A number of exciting new developments have commenced or are about to commence at SA1, including four housing developments in the Residential Quarter of the estate, the University of Wales Trinity Saint David’s new £26m Phase 1 campus development in the Peninsula, and a 500-bedroom student housing scheme.
“We have also introduced an extra £20m of support for small businesses to help mitigate the impact of the Valuation Office Agency’s revaluation.
“This includes a transitional support scheme and a high street rate relief scheme.
“The £10m high street rate relief scheme is specifically targeted at pubs, shops, restaurants and cafes, and provides up to £1,500 of additional assistance.”