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Wales Online
Wales Online
Hannah Roberts & Ria Tesia

Restaurants struggling for survival take last resort tactics including switching off lights early

The cost-of-living crisis is affecting millions across the country as people face soaring fuel and food bills. One of the sectors that has been particularly hard hit, is the hospitality industry who face rocketing bills and the difficult decision to pass on rising costs to their customers.

For some family-run, independent businesses, the situation has deteriorated to unimaginable levels that are seeing them fighting for their livelihoods. They say they are "suffering" and are dreading the colder winter months, which would exacerbate already fragile finances.

As reported by BerkshireLive, The Institute of Chartered Accountants in England and Wales (ICAEW) says that the price rise for electricity back in April "pales into insignificance" in comparison with the 80 per cent rise that was announced for this October. With prices rising, some businesses in the county have started to close early and turn off their lights when there are no customers around.

Yogeeta Faulkner who owns Reading restaurant Flavour of Mauritius, is worried about how she will afford her bills and staff salaries. Another business owner, from Windsor, called Giovanni Canali said that he is "fighting" to make sure his deli stays open this winter.

Giovanni's electricity bill recently jumped from £200 to £1,000 - before the government intervened. Yogeeta says it is not just price increases that Reading businesses are having to account for, but a lack of customers as well. This is because the cost-of-living crisis is affecting their pockets too.

The business owner said: "There is a lack of customers. We are turning the lights off whenever we can.

"If there are no customers we're just closing early. When diners visit at the weekend, they usually stay till around 11.30pm to midnight, but now, by 9.30pm to 10pm, they are go home."

She added: "Customers are worried to come out because they don't know how big the bill is going to be. The last six weeks or so, customers are buying tap water instead of alcohol or soft drinks.

"They've cut down on their expenses. I had eight tables last week, only one table asked for a glass of wine, every table had water."

Flavour of Mauritius restaurant founded in 2017 by Yogeeta and husband Mark, scores very highly on TripAdvisor and has a general rating of 5/5 stars from 79 reviews (BerkshireLive - Grahame Larter)

Flavour of Mauritius sits on Caversham Road, Richfield Avenue, and the business is usually given a boost by Reading Festival. This year, however, the Sunday and Monday were relatively quiet, according to Yogeeta.

She said: "It was busy Friday, Saturday, usually we do very well on breakfasts, but when it got to Sunday customers didn't have money. Saturday, Sunday is usually full with kids coming for breakfast, not this year."

This shift in demand has led to Yogeeta contemplating her opening times and whether she should close the restaurant during weekdays. She said: "Should we open every single day or should we just open at the weekend?

"I used to do Sunday buffets. But I struggle with the buffet now as there is a lack of customers."

The restaurant owner is worried about her electricity bill too. However this isn't her only concern.

She said that the price of food has gone up "a lot" as well. "Everything has gone up", she added.

If conditions worsen Yogeeta fears she will be unable to pay staff salaries or bills. To help try and save costs she has been turning the lights and draught beer lines off when customers aren't in the restaurant, as she says that there is no point in keeping them on.

She said: "Otherwise, you have to leave it on all night and there is no point because there are not many customers. We're just serving a few pints a night so it's not worth it".

Yogeeta thinks that the "government needs to step up" and do more to help independent businesses. She said: "We're suffering a lot.

"That's the only way I earn money - my restaurant. If I don't have customers how am I going to pay the bills?"

Deli in Windsor 'ready to fight' to stay open over winter

A deli owner in Windsor is also feeling the pinch. Giovanni Canali, owner of Tastes Delicatessen on Eton high street, said that his electricity bill recently went up from £200 a month to £1,000. When he saw the bill for the first time he questioned the viability of the shop.

Owner Giovanni Canali (right) is pictured with head baker Gabriel Beecroft (left), holding delicious food sold at the Tastes Delicatessen (BerkshireLive | Grahame Larter)

Luckily, he won't have to pay this bill for much longer. Giovanni said: "The government is going to help so instead of a five-fold increase it will be an increase of 15 to 20 per cent which should be manageable."

In September the government announced that it would provide a discount on energy and electricity bills for businesses. This tariff will apply to energy usage from October 1, 2022 to March 31, 2023.

Before receiving government help, Giovanni was contemplating closing the shop for the winter. He said: "Winter months, January and February have always been historically very quiet.

"I probably would have stayed closed but now I've got kind of renewed hope and I'm ready to fight.

"I am seeing a change in the average spend that customers have and the number of times they come and visit but at the same time I'm losing a few customers, I'm also gaining a few customers as well." With a renewed sense of hope, Giovanni is looking forward to the winter period.

Not all small business owners will be feeling this way, however, and Giovanni recognises this. The deli owner says that he had some dedicated and loyal customers and this means that he feels "really supported by the local community."

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