The cost of living crisis, increased energy bills and spiralling inflation are forcing an award-winning Ripon cafe to close its doors in a month’s time.
Caffe Tempo, based at The Arcade since the summer of 2017, has won the Restaurant Guru Best Coffeehouse in Ripon title for six consecutive years, along with Tripadvisor awards last year and in 2020.
But it said numerous financial challenges outside of its control have made the business unviable.
Owner Tina Whincup (pictured above) told the Stray Ferret:
“Our annual turnover has grown to around £220,000, but we haven’t been able to make a profit because all of our bills have gone up.”
Office for National Statistics figures released this week showed year-on-year inflation remaining at 8.7%, but Ms Whincup said:
“The reality is that many of the raw products that we use for the items that we bake, have increased between 100% and 300%.
“To transfer this to the items that we sell makes them so expensive that they go from every day purchases made by our customers, to a once in a while treat.”
She added:
“Although we have remained busy every day, the average spend per person has reduced significantly and it is with great sadness that we are calling time on Caffe Tempo. Our last day of trading will Saturday July 22.
“This has not been an easy decision for us, but unfortunately the challenges the hospitality industry has faced and continued to face have reached the point of no return.
“Our industry has had the worst three years in modern history, with two years of on-off closures, a cost of living crisis and also a shortage of staff.
“When we add in the increase in minimum wage, energy costs at over £900 per month, which could increase to £1,800 per month, when our current contract comes to an end, we find ourselves in a situation that is no longer viable.”
Staffing shortages have seen Ms Whincup working 70 hour weeks since the years of covid closures to keep the business going, but she is now looking elsewhere for employment, along with her two members of staff, including her daughter Elise.
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Ripon plans some light relief this Christmas
Ripon councillors are determined to ensure festive cheer for retailers, residents and visitors to the city centre this Christmas.
While some towns and cities in the UK are putting plans for seasonal lighting on hold because of concerns over rising energy costs, Ripon will be going ahead with its civic display and switch on event.
However, concerns have been expressed. At Monday night’s full meeting of the council, Liberal Democrat councillor Barbara Brodigan asked:
“With the increasing cost of electricity, could we be seen as being profligate or frivolous at a time when people are having to cut back on their use of power?”
Last year’s Christmas lights switch on in Ripon.
Independent council leader Andrew Williams, said:
“These are indeed difficult times and there there will be more ahead, but we want to ensure that the civic lights are in place to bring some degree of Christmas spirit to the city to benefit our independent retailers and give a lift to residents and visitors.”
This year, the festive programme in Ripon is being supported by Ripon Business Improvement District, which is paying for the production and distribution of a Christmas brochure, setting out the events that will be happening in the city.
Cllr Williams said:
“The council has been paying for the brochure for a number of years and we welcome this support from the BID.”
The Christmas lights are paid for from the parish precept and in 2020, the display was extended following a £65,000 injection of funding from the city council’s events budget, made possible because of the money that became available after a number of planned public events had to be cancelled because of the covid pandemic.
In 2021 there was further investment in the display, designed to boost the Ripon economy by attracting more visitors.
Last year’s switch-on event on November 19 saw a large crowd gather on Market Square.
Harrogate Borough Council could be forced to use cash reserves after forecasting a £700,000 overspend on this year’s budget due to soaring energy and fuel costs.
The authority has proposed to set aside half-a-million pounds in emergency money in case it is unable to balance the books at the end of its final year.
With sharp rises in energy prices expected in autumn, the council has forecast to spend an extra £1 million on gas, £750,000 on electricity and £366,000 on fuel to keep its buildings and services running this year.
Paul Foster, head of finance at the council, told an overview and scrutiny meeting on Monday that it would be a “worst case scenario” if cash reserves were used and that it was still “early days” in predicting how the year would pan out.
He said:
“There is an overspend position which is not something we have experienced – even during covid we managed to out-turn on budget.
“Hopefully the position on utilities may improve.
“We haven’t had any bills yet and this will be updated as the year progresses.”
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Mr Foster added increased energy costs were expected to be partially offset by extra recycling income.
He also said money was being saved due to staff vacancies and that these savings were expected to rise further as the council is currently experiencing a high turnover of workers.
Yet the forecast is still a cause for concern for the authority, which this time last year was predicting an underspend of £32,000 for 2022/23.
Household energy bills could top £4,000
The news comes as households have been warned annual energy bills could hit £4,266 next year.
The estimate from consultancy firm Cornwall Insight means the average household would be paying £355 a month, instead of £164 a month currently.
The government has already announced all households will receive £400 off their fuel bills this autumn when eight million of the poorest will get an additional £325.
There will be a separate £300 payment to help pensioners – also expected to assist eight million households.
But Labour has called on the government to go further, with party leader Keir Starmer set to call for a freeze on the energy price cap which determines the maximum amount suppliers can charge customers.
Previously, the level of the cap was only reviewed every six months, but UK energy regulator Ofgem changed the rules this year, meaning that it is expected to rise in both October and again in January.