Hospitality sector reels from closures
THE cost of living crisis has begun to bite for the Macclesfield hospitality industry with five businesses closing and others predicted to follow.
Restaurant The Copper Room, on Chestergate, has closed its doors after little more than a year of trading and popular The Wet Led Bar, on Church Street, has also shut.
As previously reported owners of the Treacle Tap, on Sunderland Street, announced its closure after 12 years last month.
And Andy Thompson, from Macclesfield Hospitality Action Group, says Coffee Traders, on Chestergate, and tapas restaurant Spanish Caravan, on Albert Place, have also perished this summer.
He says such businesses face a two pronged attack from the cost of living crisis - fewer customers willing to spend money and the costs of operating spiralling ever higher.
It is a situation by no means unique to Macclesfield and last week leaders in the brewery and pub industries wrote to the government warning of dire consequences without assistance.
Andy, who owns Zinc Technical Services, which supplies IT systems to hospitality businesses, is of a similar view.
He said: “Bars and restaurants have been hit hard, people are reluctant to spend money on what is seen as a treat.
“The cost of buying goods before sale, power and fuel has gone through the roof, only so much of this can be added on to prices before it prevents customers from coming.
“This means profits reduce and generally the hospitality industry has been massively affected. I would be absolutely gobsmacked if there weren’t further casualties from the cost of living crisis.”
Even the simple job of cooking a burger, for example, is now much more expensive because of the cost of gas or electricity, Andy added.
Another problem is a hangover from the Covid crisis with many of the loans made available during the pandemic now ready for repayment.
But there has been some good news, Snow Goose has reopened on
Sunderland Street, a new bar has been approved for the former Revolution building and BOHOTEL has opened with a bar on Chestergate.
And Andy says there is still room for well run business to thrive with the right offer, although he acknowledges this can require investment money.
He held up restaurant The Fountain, and bar/ brewer Red Willow, both on Park Green as examples and said: “What successful businesses are
doing is adapting what they learned in the pandemic such as providing outdoor spaces.
“It’s about keeping ahead of the curve, good service and a good offering at the right price, although this is far from easy to achieve at the moment.”
Macclesfield Hospitality Action Group was formed during the pandemic and offers support and advice for businesses in the industry. To find out more call Andy on 07790 806855.