Newquay café closes four days a week to deal with "unaffordable" cost of living

We investigate the real impact of rising costs on Cornwall's hospitality businesses

Author: Megan PricePublished 13th Feb 2023
Last updated 13th Feb 2023

A cafe in Newquay has shared why they are closing four days each week as the cost of living continues puts pressure on businesses across the Duchy.

Today we are launching our investigation into the impact of rising costs on cafes, pubs and restaurants across Cornwall.

Palm Bay, which first opened on the high street a year ago, was open to trading seven days a week last winter.

Jade Ulrich, the company director of Palm Bay cafe in Newquay, told us: "Most of our costs immediately doubled off the back of the cost-of-living crisis. Now we're seeing they're at least trebling".

"A lot of things are becoming unaffordable"

A recent report from the Office of National Statistics shows 1 in 20 hospitality businesses across the UK plan to cut trading for two days each week.

According to the ONS study, in the hospitality industry 23% of businesses said energy prices were their main concern for October last year, similar to 22% in November.

"During the pandemic we had difficulty getting hold of things - so that was the first hurdle. Then obviously the suppliers have increased their prices so it's made our business model completely change.

"To adapt unfortunately we have had to close for four days of the week".

Palm Bay in Newquay shut four days a week

Other new figures released this morning reveal more pubs and bars are also calling last orders as a result of spiralling costs. According to the recent study, the number of pub and bar companies closing their doors has risen by more than 200 in a year.

"There's not much you can do"

Jade explained that for her, four days a week was a last resort to survive:

"In your first year of business you don't necessarily want to be taking measures like that but of course during the week if there is no footfall, there's not much you can do".

Newquay BID revealed many businesses are reopening for half term and lots of hospitality venues are not closing full time - however some are reducing their hours or closing a few days each week.

They added in the seasonal town, most years businesses are more likely to reduce their opening times to accommodate for less tourist trade coming in.

Jade added: "I think everybody that's in business in Newquay is keeping their fingers crossed for a good half term.

"Because it's so uncertain right now we just don't know".

Read more:

Businesses in Cornwall close two days a week to deal with rising energy bills

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