Hello,
Johanne and Dave Banks have tried everything to keep their business alive. The couple put on Halloween events and craft nights, booked live entertainment, took out loans – but nothing kept the wolves from the door of their beloved restaurant and bar.
Crowded House in Bury has now been forced to close, driven out by skyrocketing costs and a ‘change in habits’ as people seek to tighten pursestrings. It is a sad story shared by many of Manchester’s favourite business owners – as famous chocolatier Slattery put it in a stark warning last week, ‘nobody is safe’.
Slattery said ‘nobody is safe’
(Image: Manchester Evening News)
So why are things just so tough for hospitality right now? Our What’s On editor Jenna Campbell says the industry has faced ‘a number of challenges’ over the last few years – and despite the ‘resilience’ of operators, it’s hard not to feel concerned about what may be just around the corner.
“From the pandemic and cost-of-living crisis, to inflation and staff challenges, hospitality has been hit from every side,” she told the Mancunian Way.
Looking ahead to the next 12 months, she said incoming tax rises and changes to business rates are ‘of primary concern’.
“In October, Chancellor Rachel Reeves delivered her first budget including rises to employer’s National Insurance contributions, an increase in the National Living Wage and Minimum Wage, and a reduction in the rate of business rates support,” Jenna continued. “This triple whammy of fiscal changes, which will come into effect in April, will directly impact restaurants, bars and pubs – and unfortunately, for some these increases may make it infeasible for them to carry on operating.”
Damhouse tearoom in Astley has been forced to close
(Image: Damhouse)
She has heard first-hand how these changes are ‘weighing’ on restaurant and bar owners in the region – including those at Damhouse tearoom, who announced their closure this week. Operators have said they are conscious of not passing these increases onto customers, but feel that they may be given no other choice if there is no further government support or intervention.
But despite the gloomy outlook, Jenna said there is some confidence that footfall will return and if consumers have more money in their pockets as a consequence of the budget, they may look to eat and drink out more.
“Spend long enough with those working across Manchester’s hospitality community and you’ll realise how resilient and optimistic they are,” she said. “The trading conditions are extremely hard, but many I speak to continue to be agile and adaptable in the face of these headwinds.
“Though not ideal, some owners are having to make difficult decisions about scaling back expansion plans, leaving some jobs unfilled to get by, or reducing operating hours.
“However, many have reported a strong festive season and are optimistic that as we head into spring that consumers will want to come out and spend money in restaurants and bars.”
The big question is now how can things improve? And what can the everyday customer do to help?
“It seems quite straightforward, but support local and independent businesses where you can,” Jenna said. “The cost-of-living crisis affected both business and consumers, which can make it hard, or impossible in some cases, to eat and drink out. However, I feel strongly that if we don’t collectively support the businesses that make our towns and cities unique and diverse then we will be left with only soulless chains.
“Whether it’s a weekly coffee or buying vouchers from your local restaurant for someone’s birthday, there are small things we can do that will hopefully make a big difference to our favourite bars and restaurants.”
You can find Jenna’s long-read on the state of Manchester’s hospitality sector here.
Weather etc
Saturday: Overcast changing to sunny intervals by late morning. 6C.
Roadworks:M60 clockwise closed due to roadworks during the night at J21 A6104 (Hollinwood) on January 17.
Manchester headlines
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Shooting: Police have issued an update after a man was shot while ‘leaving a taxi’ in Oldham. More here.
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Haaland: Erling Haaland has signed a new nine-and-a-half-year deal at Manchester City. More here.
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Horsing around: A man has been brought before the court after he was found drunk while “riding” on a HORSE. More here.
Worth a read
If all that hospitality chat has got you in the mood to get out and support your local, we’ve got some fantastic suggestions for you.
Original Third Eye in Didsbury is nominated
(Image: Manchester Evening News)
Five Greater Manchester restaurants named among UK’s best at the Nation’s Curry Awards 2025. You can read more about them here.