The sun is shining in Cutting Room Square: it’s 4.30pm on a Thursday in June, and the Euro soccer tournament is just around the corner.
But in the square which was named “one of the coolest streets in the world” 19 months ago, there were just 18 people enjoying drinks and meals in the bars, cafes and restaurants along the street.
The 18 tables account for just five of the dozens in the square; there used to be many more.
In the past 12 months, Second City Sports Bar closed in Ancourt, leaving its space vacant, while Nam, an “audiophile bar and kitchen”, closed earlier this year and its space also remains vacant.
The past month has been particularly tough for the area, starting with pasta bar Rigatoni announcing on May 20 that it would be closing that week.
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Then, on May 31, a confiscation notice was posted on the door of artisan bakery Trove. Landlord Manchester Life said the notice had been served after the cafe went into liquidation.
a Manchester Evening News The investigation revealed that Trove’s parent company was in debt to the tune of £1.6 million.
Of course, Ancoats is not the only hospitality industry struggling, with traders speaking openly about the pressures it has felt since the pandemic, with long-established establishments such as Greens in Didsbury closing and others like Pie and Ale in the Northern Quarter closing without notice.
The 22nd of February was a particularly disastrous day for Greater Manchester’s hospitality industry, as three restaurants announced they were closing – Vurger and Canvas in the city centre, and Zing and Zest in Oldham – shortly after. It came after research published by the Campaign for Real Ale (CAMRA) predicted that 1,000 pubs will close in the UK by 2023, with 24 closing permanently and 60 closing long-term in the metropolitan area that year.
Yet Ancoats is unique in Manchester – hailed as one of the ‘coolest neighbourhoods in the world’ as an example of how successful redevelopment can create new, vibrant communities and attract affluent young professionals to the city. So are these issues common across the hospitality sector, or is there something deeper?
“The people who live here are segregated.”
Ancoats has been a breeding ground for independents since it was redeveloped into its current form in the mid-2010s, with Rudy’s opening its first pizza place here in 2015 and now a national chain.
Mana opened just behind the Halle in 2018 and a year later received its first Michelin star – the city’s first in 40 years. Restaurants Canto and El Necott are also mainstays in the area – in fact the only major chain with stores in the area is Greater Manchester icon, the Co-op.
New businesses are springing up here all the time, but Warren Newell, co-founder of Po-Boys, a New Orleans-style sandwich shop, says the way they operate is changing out of necessity.
Instead of opening its own restaurant, Po’Boys has adopted Warren’s business model, known in the industry as a “vendor business,” by taking over Seven Brothers’ kitchen and catering to bar patrons.
That’s because the rent is high enough [in Ancoats] “We never thought about opening our own stores,” he explained, so they opted to form smaller partnerships with existing popular stores where sales were more predictable.
“This is our first venue, we’ll see how it goes here and if successful, we’d like to move to another location in Seven Brothers, depending on the economics and rent market,” he continued, indicating that this sales strategy indicates Po’Boys is in it for the long haul, not just while it’s new.
But why would it be difficult to open a shop in Ancoats? “The people here are in quarantine,” he replied. “People outside the bubble can’t just walk in.”
“Our limit is £900… and our rent is about four times that.”
As well as the difficulty of attracting pass-by customers, the costs of doing business in Ancoats are high: one in-bar vendor, who asked not to be named, said he could afford the £900-a-month rent for a standalone establishment.
“The rent is about four times as much in Ancoats,” a colleague suggested, and the owner agreed. But the rent of around £3,500 a month isn’t the only cost the business has to bear.
So are utility, wage and business taxes, since some renters in this part of the city are subject to additional “real estate taxes.”
A council report prepared when the area was trying to come together in 2017 said it would go towards the costs of the “Property Management Company for the Ancoats Estate”.
This is a fee to support the cleanliness, upkeep and landscaping of the area and is indexed for inflation: management sets the annual fee for the next financial year in April, using the Retail Price Index in March.
Inflation hit 13.5% in March 2023, meaning some companies saw their rates rise by the same amount as other fees also soared. This year they have risen by a further 4.3%.
So as other costs rise, some feel it’s an added pressure they wouldn’t face in other parts of the city. The business owner said it’s “making it harder for small businesses to thrive here,” adding, “I think it’s easier to start a business in the Northern Quarter and actually stay there than it is here.”
Meanwhile, the city council said: “The Ancoats precinct tax is levied on both residents and businesses… to ensure the area remains clean and receives the investment that will make it one of the city’s most popular places to live and do business.”
“However, it is important that we do what we can to support businesses that are struggling and we would encourage people to get in touch with the council to discuss how we can help,” the spokesman added.
Seven Brothers bar manager Jasmine Smith believes that ultimately the expense could take away some of the “neighborhood feel” that’s an important element of the area, and confirmed rumours that chains are eyeing Ancoats.
“I know a lot of people here,” she explained, “It’s a very special place and it would be a shame to see it go, but it looks like it’s going to happen, because only people who can afford it are going to move here.”
“There was nothing last weekend.”
There is also evidence that visitor numbers in the area are declining, with or without extra fees and high rents, according to Supervisor Robbie Candy, with Ancoats Coffee Company at Royal Mills on the Rochdale Canal being one example.
“The last few months have been quieter than this time last year,” he said. “A lot of things seem to coincide with the sun starting to come out, and we’re lacking it.”
Despite this, he doesn’t believe business is “struggling”. A similar situation is occurring at Edinburgh Castle, where Joe Wood is manager.
“There was nothing last weekend,” he says.
This trend hasn’t lasted very long, and there’s a logical explanation for it: “It’s only been going on for about a month,” he added. “The weather has been [Cutting Room] The square is packed, and with football season coming to an end the crowds are thinning, but will pick up again when the weather improves.”
Meanwhile, Joe has heard from his friends in the hospitality industry – who are usually quite chatty – that “there are common problems in a lot of places”, both in and outside Ancoats.
“The rising cost of living just keeps people from coming and spending money,” he summed up.
“I don’t think it’s specifically due to uncoating.”
“Rent is an issue,” agreed Anna Martin, bar manager at Jimmy’s, where the rock bar is empty at 3pm.
But she believes the area is still vibrant. [closures are] Specifically, it’s a problem in Ancoats.
“At the moment it’s more vibrant than it’s ever been. I think it’s busier than it’s ever been. Everyone’s coming to Ancoats and it’s still known as the place everyone wants to go.”
Chris Griffiths, co-owner of Café Cotton in Halle, agrees: “I think it’s the overall economic situation,” he says, naming Nam, Trove, Rigatoni and Second City, which all closed this year – all “bigger than Ancoats”, he says.
But he acknowledges there are unique challenges to running a business here. He continued: “Ancoats is a destination. The Northern Quarter is walkable. Here it’s isolated. We definitely need to make it a destination.”
Hope remains that the area will bounce back with better weather, a summer of sport and word spreading about people searching for new properties in the area, but for now Ancoats is feeling a bit bruised and hurt.