The owners of independent hospitality venues in Nantwich have issued a dire warning about the crippling costs they are facing.
And it’s feared some of our favourite places to eat and drink will have to shut their doors for good if the Government does not help the sector which they fear is facing a “perfect storm” of costs.
In recent months, the town has lost two restaurants – Aroi Thai on Pillory Street and Love Lane Tapas on Love Lane.
Business owner Kelly Woodnutt (pictured), who runs St Martha on Hospital Street and Edward’s on Pillory Street, is spearheading a campaign to lower VAT for their sector.
And she has been backed by more than 60 other restaurants, coffee shops, takeaways and bars across Nantwich and Crewe.
Kelly met with Crewe & Nantwich MP Connor Naismith calling for his support to help the industry and handed him a letter signed and supported by the dozens of business owners.
They are calling for a 10% cut in VAT for the hospitality industry fuelled by the fact that, unlike other industries, the sector is unable to claim back any VAT at source on food products, which are zero rated.
Kelly told Nantwich News: “I’ve been spreading the letter far and wide and almost every local hospitality establishment in Crewe and Nantwich have asked for their name to be added.
“People need to better understand how the VAT system is heavily weighted against hospitality and realise how on a knife’s edge most of us really are in our industry right now.
“I think most people just don’t understand how difficult it is even for busy places like ours to survive right now.”
She fears that even her award-winning St Martha Greek restaurant on Hospital Street may only have six months left unless the Government helps.
She said: “Our industry is the second highest employer of young people – however we can no longer afford to give the opportunities we once could.
“The Government is currently investing billions into incentives for hiring young people yet failing to support an industry that has been doing just that for decades.
“In an industry which cannot reclaim VAT at source for most of its core purchasing, a reduction in VAT as exercised in many other parts of Europe, would allow a small amount of breathing space.
“There is a ceiling to the number of prices increases we can introduce before custom is lost and most of us are already at his juncture, with costs overtaking profits.”
Kelly revealed that her two establishments are edging towards operating at a loss and could face closure in 2027 if costs continue to rise and no relief is found.
She added: “This is not about making more money.
“This is about survival and truthfully it could be the difference between staying open or closing for most bars and restaurants in our local area.
“Many of us are facing down the very real prospect of having to close businesses for which we care so much and have worked so hard for.
“We ask for this reduction as a lifeline to ensure that our hospitality scene stays alive and we can keep local people in jobs and the local economy stays afloat.”
Mr Naismith said he supports the local hospitality industry and their call for fairer VAT system, and has agreed to write to Chancellor Rachel Reeves to highlight their plight.
He said: “I want to say thank you to all of the businesses who signed this letter, and a special thanks to Kelly for organising it.
“Hospitality businesses are the lifeblood of our communities.
“They are absolutely essential in building a sense of place and provide unparalleled employment opportunities, particularly for young people. But they can only continue to do that with proper government support.
“I wrote to the Chancellor in November last year calling for a review of VAT levels and Business Rates reform.
“More recently I have joined Hospitality Together’s campaign to secure a sector specific VAT cut for Hospitality.
“Kelly’s letter is clear evidence that we have to act now to save our hospitality sector, and I do not take her words lightly. I intend to take this campaign to Parliament in the coming weeks and months.”
He has also committed to a forum in Nantwich to meet hospitality owners to listen to their concerns, which Kelly hopes will take place in June.
Businesses which have signed up to Kelly’s campaign include:
The Red Cow, Nantwich
The White Horse, Nantwich
Six Nantwich,
The Nest Nantwich,
The Royal Oak, Worleston
Hops Belgium Bar, Crewe
Moss the Café, Nantwich
Chill & Thrill Crewe,
No18 Coffee Shop,
The Bhurtpore,
The White Lion Hankelow,
Doug’s Deli Nantwich,
Big Mugs, Crewe
Three Cups Nantwich,
La Dolce Vita Pasticceria, Nantwich
Nantwich Bookshop,
Little Dumpling King
Charlie & Co Cafe, Nantwich
Peacemeal Café, Nantwich
Ebenezers Nantwich,
Ebenezers Crewe,
Bench Bistro, Nantwich
The Railway Nantwich,
Ginger & Pickles Nantwich,
Toast Haus Nantwich,
The Running Bear Café Nantwich
The Crown Hotel & Restaurant Nantwich,
GOAT Nantwich,
Jordy’s Pizza Nantwich,
The Rolling Pin Bakery Nantwich,
O Kypreos Nantwich,
The Peacock Nantwich,
Enzo Nantwich,
The Malbank Nantwich,
Café De Paris Nantwich,
The Leopard Nantwich,
Berries Café, Wrenbury
Bondies Bagels Nantwich,
Coral Reef Nantwich,
Deadwood Smokehouse Nantwich,
Chopstix Nantwich,
CW2 Burger, Crewe
Hongs Noodle & Dumpling Bar, Crewe
Mini Beas Coffee, Crewe
Milk & Honey, Crewe
Cheerbrooks Café, Nantwich
Pillory House Coffee Shop, Nantwich
AT Welch, Nantwich
The Holy Bun, Crewe
Sun Sing, Nantwich
Chop Suey House, Nantwich
Oriental Magic, Nantwich
Hings, Nantwich
Market Street Fish & Chips, Nantwich
Maybe not a ‘Silver Bullet’ to Remedy Overnight all that’s So Sickeningly wrong in Our Wonderful Country after decades of Pathetic Inadequate Govt but For Heavens Sake let’s Vote for Radical Change that just might ‘Rescue/Reinvigorate’ the UK at the 11th Hour, Hospitality included?….
Roll on ‘REFORM’ 🙏
EASY, vat is at £90k threshold, sales after that 20% is now added as vat, work up to the threshold and then run the kitchen making items that can be eaten cold these are then sold online I have a friend in Dorset doing this until the government raises the vat threshold her answer is to press for the threshold to rise not for vat to be reduced, that’s just plain daft, why not work smarter not harder
I agree Mark, it’s nothing to do with vat, it’s a point of sale issue. You have to forensically check the business section by section, are you overstaffed, can your menus be streamlined, are some days or times not worth opening, can you do something profitable in those closed hours, can you sub let to another food company, can you run a bulk catering to freezer meals for an online ordering outlet. Redmond is spot on, you have to adjust to suit the market, we unfortunately have a nanny government interfering in businesses they have scant knowledge of. Classic take for example rented housing, they have certainly caused many landlords to sell up and leave the sector, or change their businesses to flow in another direction, this is nothing new or in fact of much interest to the current incumbents you yourselves have the answer dig deeper as independents have always bounced back nothing good comes if it is easy, that’s why none but you have the success. If it was easy they would all be doing it
Labour taxation, min wage, NI, rate increase, no energyy support etc ironically Martha’s was even mentioned in Parliament by our local Labour MP ” Congratulations to all those nominated and those who won awards. I was particularly pleased to see the very first winner of my Small Business of the Month competition St Martha Restaurant and recent nominee Toast Haus Nantwich pick up two awards each 🎉🏆” Conner Naismith what is your response?
Perhaps Nantwich is saturated with restaurants, pubs, bars, cafes / coffee shops, take aways ( chip shops, Chinese, Italian, Indian ) all offering similar food choices . Market forces will decide who survives . Taxpayers cannot afford to bail out proivate businesses
This year I have trialed my restaurant, which is not in this area, as a take home service only, we choose to open at the times it will be busy and the days required to make it worth it, this is more high end food to eat at home and to be honest I don’t think after the trial we will go back to eating in, but tailor it more to bookings for parties and club groups weddings and celebrations. We also have a baker, and overnight the bakery items are created and placed for sale at 7am, the bakery sells out before 10am as there is usually a queue. I think it may be useful to work out what suits your business, cull the less profitable and create the sell out ideas to move forward.
Unfortunately this is not an issue for the taxpayers
If costs are going up prices need to go up its as simple as that. Or reduce profits which you have said isn’t possible.
You don’t need a bailout or the government to lower VAT rate. It hasn’t changed recently to make it worse.
We all have increased costs, if a £16 dish had to have a £1.60 increase I don’t think most diners would argue. How could they, if eggs go up from £1 for 6 to £1.60 as is stated in the news today the dish HAS to go up.
If a busy restaurant is not making money there is a real problem which doesn’t involve a bailout.