Fight for survival: The sad impact the cost-of-living crisis has had on Derby's dining scene

A series of high-profile closures in Derby has altered the city’s dining scene irrevocably.

In the space of a week, The European, one of Derby’s finest independent restaurants and Revolution, a popular bar, both closed their doors for good.

The European’s owners have gone on with their retirement plans and closed the business after failing to find a buyer for the restaurant.

Revolution closed eight of its least profitable branches, one of which just so happened to be Derby.

The fight for survival

The hospitality industry, which is already in a state of flux, continues its fight for survival. Closures are not Derby-centric, but more a country-wide issue.

Celeb chef Simon Rimmer who co-founded vegetarian restaurant Greens announced the closure of his Didsbury branch in a social media post, on Tuesday, January 2. Simon cited a 35 per cent increase in rent by landlords as one of the reasons for this closure.

On the same day, ex-Masterchef finalist Tony Rodd and restaurateur also took to social media to tell followers about the closure of his Copper & Ink restaurant in Blackheath, London.

Tony said the closure came amid ‘continued financial difficulties caused by Covid, increased energy costs, the cost-of-living crisis and price increases from suppliers.’

Why are restaurants closing in Derby and beyond?

Holly Marianne Faulkner is the owner of Cherry Pickle Catering and former owner of busy Sadler Gate restaurant, The Wonky Table in Derby. She closed her restaurant in 2023 citing VAT rates, and spiralling food and energy costs.

"Diners' attitudes have changed"

Holly believes the way people think about their dining experience has changed over the years.

She said: “I think there’s a massive cultural shift of attitude to eating out. More people are staying local, choosing places where there is somewhere they can park, or having takeaways.”

Are food delivery companies eating into restaurants’ profits?

The idea of having food delivered indoors is not only convenient for diners but could be seen as a way to keep costs low while recreating the experience of eating restaurant-style food at home.

One resident said: “Deliveries have changed the way restaurants operate. If independent places aren't offering that, they are missing out on massive sales.”

Another Derby local said: “I'm sure the likes of Deliveroo/JustEat are a contributing factor as well, with getting something delivered being more convenient than ever, but I think this is largely down to the disposable income problem."

‘Theatres and nightlife in Derby city centre need a boost’

Restaurants that have places of interest nearby could fare better due to increased footfall.

Holly said: “The biggest thing for Derby is that they need to bring the theatres back down to the Cathedral Quarter area.

“When the Assembly Rooms were open, we did a lot more covers for diners seeking a bite to eat where we offered pre-theatre menus.

“It has all been moved out of town, along with hotels which had the midweek businessmen. Although since Covid, there are less people working away and more working from home.”

‘Councils offering free car parking could help restaurants’

Accessibility is key to enticing customers out of their homes and into restaurants. City centre parking appears to be an age-old issue that may put people off from visiting eateries.

Holly said: “Parking has always been a massive issue. I also personally don’t like all the one- way streets and new restrictions around the courthouse area.

“I’m not sure it helps the city flow, it is hard to see when you're used to it, but I’ve had friends visiting and they’ve got totally lost finding Sadler gate area.”

Another Derby resident thinks parking is just part of the problem.

He said: “I'm convinced that one of the few ways to help restaurants would be for councils to provide free parking and massively lower their business rates to increase footfall and reduce the number of empty premises.

"The problem is that they can't do this with their budgets being squeezed so tightly.”

Chain reaction - bigger restaurants ‘making record profit’

As independent and chain restaurants battle it out for diners’ attention and wallets, it could be said chains have a bigger pull due to deeper pockets that can potentially absorb losses from offering cheaper dining options.

One Derby local who works in a chain restaurant believes chains are really attractive to diners.

She said: “People are drawn towards chain restaurants. The eatery where I work is taking in record sales and record profits. We don't offer better food than independent places and customer service in most places is fine.

“Working in the food industry, I know managers from all different chains over the years. Places like McDonald's are taking more money than ever, even if their profit margin is smaller nowadays.”

Customers feel the pinch

The cost-of-living crisis continues to impact both businesses and consumers alike. Seeking out the best deal, or pocket-friendly dining options is now at the forefront of diners’ minds.

One budget-conscious resident said: “I have stopped going out for food and only go to cheap pubs for one or two drinks since the cost-of-living crisis started. I'm certainly not the only person who has had to make cutbacks to make ends meet.

“I also feel almost vulgar going out for food when I have friends and family who are struggling and so the whole experience is much less enjoyable.

“I imagine lots of people feel like I do, and while I know some people haven't been that affected, I imagine for most people, restaurant trips are one of the first things to cut back on. The only thing that would make a significant difference to independent restaurants is people having money to spend in them.”

Another diner blamed the economic climate for ‘destroying’ the hospitality sector. He said: “Rising costs have forced people to stay in, and subsequently wrecked the hospitality sector.

“The average Joe can't afford to wine and dine anymore or go away for that odd weekend. I went into a local pub for food the other day, they wanted £20 for just about any plate meal.

“Now I know costs have risen, but I'm not paying that, so I walked out. You will see more and more pubs and restaurants shutting over the next few years.”

Cash-strapped diners could well vote with their feet, however, restaurants are businesses too, and many are currently operating at a loss.

Since closing his restaurant, Tony Rodd has spoken at length about the issues facing the hospitality industry. He spoke about the fallout of restaurants closing in communities around the country.

One Derby resident said: “Businesses don't run for goodwill, they need to make money. Rising prices would mean food prices would skyrocket to levels people wouldn't pay, so owners are left with ‘Hobson's choice.’

“At the same time, rising prices are hitting average families hard, so paying for entertainment becomes more and more of a rare luxury. Add to that, younger people frequently don't go out to restaurants and bars generally to socialise and all these businesses get squeezed out of business."