The city centre restaurant closed yesterday after just 18 months citing challenges posed by the current economic climate
The restaurant closed down yesterday (Image: Manchester Evening News)
Yesterday afternoon, customers of Medlock Canteen, an all-day dining spot located in the city centre, received an email informing them that the restaurant’s time was coming to an end.
Owners said it was with “heavy hearts” that they would be closing the doors of the restaurant just 18 months after it opened its doors, citing challenges posed by the current economic climate.
It was a bitter blow to fans of the restaurant, which blended the food and style of French bistros and American diners.
It had become popular with locals and national critics, and was praised by Jay Rayner for its “thoroughly humane embrace and “appealing, familiar dishes that are the best versions of themselves”.
Launched by Chris Edwards, Sam Grainger and Owain Williams in 2024, the same people behind Manchester venues Madre and Winsome, and Liverpool hotspots Belzan and Sister Ray in Liverpool, the aim was simple: “To build a neighbourhood spot where everyone felt welcome, serving proper good food you know, love and can’t wait to eat.”
Medlock Canteen is located at Deansgate Square (Image: Manchester Evening News)
But as they updated loyal customers yesterday, it became apparent that even the most popular and quality of restaurants are finding it hard to survive – and it’s worrying for Manchester’s vibrant food scene.
“The current climate has made that dream a tough one to sustain,” they shared.
“Rising costs, increased taxes, and tighter spending have created challenges we’ve fought hard to overcome but, sadly, they’re ones we just can’t compete with.”
Manchester might now have two Michelin Stars, and regularly appear on national guides for having some of the UK’s most exciting restaurants, but the challenges are mounting.
Speaking to the Manchester Evening News today, Chris Edwards, one of Medlock Canteen’s founders and directors explained more about the reasons behind the sudden closure and his worries for a industry he cares deeply about.
“We’ve had some challenges like all, such as getting people through the door in the earlier parts of the week, but really it’s just the cost of everything,” he said.
“We got to the end of year one feeling like we could continue but with energy prices increasing, and employer National Insurance Contributions (NICs) going up, it started to become apparent that any debt accrued in year one would become harder and harder to pay off.
“It’s a sign of the times. Something that has taken up so much of your time to keep going, becomes a poor financial decision to carry on.
Deansgate Square(Image: Manchester Evening News)
“The business that isn’t working as well needs to most attention, and unfortunately we couldn’t have that knock on effect on the rest of the businesses.”
Located at Deansgate Square, formerly known as Owen Street, Medlock Canteen is one of several food and drink operators at the foot of a series of residential skyscrapers.
Construction on the tower complex began in July 2016, with developer Renaker beginning construction on the South Tower and West Tower.
Overall completion of the development occurred in late 2020. Other towers in the adjacent vicinity that were also built as part of the Great Jackson Street Development Framework.
Though the area has attracted a lot of well-known hospitality names including Salvi’s, the Schofield brothers and Food Sorcery, Chris says their entry to the development may have been a bit too soon.
“The location is still developing and I think it will work when complete. We love the location and the plans are incredible, but without more people through the door we wouldn’t be able to continue. I don’t think we could make it through to 2026 when it’s all complete without accruing more debt.
“Renaker are doing incredible things with it, but maybe it was just a bit early with what we were trying to do.
“You start panicking, and you start having to change the company to make people come in, but then you stray too far, that doesn’t sit well with us.
“We wanted to be welcoming to everyone, but reducing costs means that quality comes down, and we didn’t want to downgrade our values to make it work – long-term that’s not a good strategy.”
Deansgate Square in the centre of Manchester
Medlock Canteen aren’t the only ones though. The issues affecting this restaurant are not unique, which makes the situation for hospitality businesses even more precarious especially as the general public still feel the pinch of rising costs and bills too.
“It’s always a concern when any single cost goes up. VAT going back after covid, National Insurance Contributions (NICs), and Minimum Wage going up, are all added costs that the general public are not ready to have passed on to them.
“Ten to fifteen years ago, your wage costs would be 25%, now it’s standard that it’s 35%. With profit, it would be 10% profits at that time and now you would lucky to get that – people think restaurants should be making money but that’s not the reality.
“For example people think £4 for a latte these days is expensive, but really businesses should be charging £5-6 for it.
“You end up with 45% of revenue to pay for food costs, so there’s no room for manoeuvre, if you’re not full at all times, or balancing the books, you can be out of business quickly.”
Chris feels that its been exacerbated by dining trends too and the pressure that puts on the bottom line.
“A lot has to do with the nature of the hospitality industry as well. It’s competitive, some can afford to keep their prices sharp but it’s lower quality produce, it skews people’s understanding of it all.
“Ten years ago there was a surge in casual dining, middle of the road, and last five, it’s really started to splinter off.
Belzan Restaurant owners ltr,Sam Grainger,Chris Edwards,and Owain Williams.(Pic Andrew Teebay).(Image: Andrew Teebay Liverpool Echo)
On one side it’s the high-end, more expensive places, and the other it’s the ones that are more all about costs and giving really low costs to consumers.
“Those in the middle are being gutted out, it’s really tough, but it reflects the wider economy.
“And people don’t have a lot of money in their pockets so they are not willing to spend it.”
It’s been a difficult few weeks for the team, but Chris, who looks after some of the company’s other venues thinks there is room for optimism, as well as Government intervention.
“I’m optimistic that people have much higher standards and are wanting to eat more interesting food or support small businesses, but it’s more that there never seems to be any word from the Government in terms of support for hospitality.
“It is extremely tough to work in this industry, it employs an incredible amount of people, but it feels like the Government are happy to see these places fail.
“Highstreets are dying and the only people rescuing them are hospitality venues, it doesn’t bode well if those companies aren’t able to survive either. We need to see these places thriving, otherwise people will just be sitting at home.
“It continues to get harder and harder every year and in a world full of chains, it’s only chains that will be able to afford to keep running.
“We would love to bring Medlock Canteen back in the same location, but for now we just can’t get the numbers through the doors.
“There is an audience for us, we can see that in how many people have reached out to wish us well and support us.
“But it is really hard at the moment, not everyone will survive. We’ve seen so many closures in Manchester his year, there’s no one thing to pinpoint it’s just the mass effect of all these issues piling up week after week.”