A successful independent restaurant has closed down due to rocketing energy bills. John Dolan, who owns the Gatehouse Steakhouse in Dolgellau, made the announcement on the business' Facebook page.
"We had planned on being here for another four years, doing our thing, having fun, and serving great food," wrote Mr Dolan, who ran the restaurant with his wife Vita. "Unfortunately, we were quoted £7,378 per month on gas and electricity, and this was the best quote. This is a huge increase from what we have been paying, and it is just not realistic for a small independent business to thrive with such overheads... and 'surviving' is just treading water.
"Since opening this sleepy restaurant in April 2016, we have truly maximised the business in every way possible whilst maintaining our values and continuing to improve in all aspects. But to be tasked with increasing revenue by another £5.5k per month just to keep the lights on makes this pretty pointless. Take away the passion and love, friendships, banter, laughs, etc. The goal of this business is to be profitable. To add £66,000 extra to our already high annual bills, leaves me with more questions than answers on how to generate that extra revenue, with extra workload, but no extra profits... whilst dealing with increasing supplier prices (the suppliers are also being hit with huge increases, which will increase product prices).
Read next: Pair quitting pub after 26 years because energy and wholesale food prices have doubled
"The easy answer is to put up prices, but it's not so simple. Footfall must also then increase, but it is highly likely to decrease given the reduced household incomes after bill increases etc. If we continued trading, we would be charging over £30 for an 8oz rump steak, and £25 for a burger... this is totally unrealistic. And don't forget, this would be just to clear energy bills, no Ferrari or Lamborghini, just to pay for energy!"
The Gatehouse has an average Facebook rating of 4.8 stars after 477 votes. The closure was described as "gutting" by Mabon ap Gwynfor, Plaid Cymru's Senedd member for Dwyfor Meirionnydd, who tweeted: "This is terrible for the owners, their staff and the community."
Mr Dolan added in his Facebook post: "Only last week we were still busy, so it is comforting to know that we have chosen to close for the reasons mentioned, than been forced to close due to a failed business. It is what it is unfortunately. Laying off brilliant staff is a gut-wrenchingly difficult thing to do, especially when everybody is so close and we are all friends, but the staff took the news so well, albeit very surprised, and that is testament to such a fantastic bunch of people. We celebrated with a nice party last Sunday, and drunk the barrels dry!"
The restaurateur thanked his team for their "huge efforts" and customers for "unbelievable humbling" support. He continued: "To send little surprises from the kitchen and the bar to unsuspecting customers has been such a buzz to see the happiness, and to feel the love and support from so many people, we can't thank you all enough. Going home feeling so proud and fulfilled knowing that the trust put in us to deliver something special, has made all the burns and cuts worthwhile, and I'm hungry to experience this again soon.
"Turning up in Dolgellau for the first time in March 2016, having done no research on this little town and splashing our savings on the Gatehouse was quite ballsy when I think back. Quite a few people told us this place was doomed, it wouldn't work, the menu was too big, this that and the other.... We went with our vision and smashed the s*** out of it every day... back in the old days, me and Marco working 8am to 1am daily, battering the prep lists and smashing service... it's been a rollercoaster!"
The Dolans plan to devote the next few months to spending time with their children. In a Twitter thread responding to the closure, Mr ap Gwynfor revealed other local businesses have contacted him with concerns over their futures.
"At the same time the Tory Government are handing out massive tax cuts to their wealthy friends, and doing nothing to support ordinary people and small businesses," the Senedd member wrote. "We need action now."
The BBC reported last week that energy bills for UK businesses will be cut by around half their expected level this winter under a government support package. For six months from October wholesale prices are set to be fixed for all non-domestic energy customers at £211 per MWh for electricity and £75 per MWh for gas.
Some have argued the measures are insufficient. Lib Dem Treasury spokesperson Sarah Olney said the "delayed announcement" left businesses "under a cloud of damaging uncertainty". She added: "The government have no plan beyond these next six months, paralysing businesses who need to make decisions for the long term." You can read more of the latest news from Wales here.
READ NEXT:
- The burger bar on a remote farm that's become one of the most in-demand venues in Wales
- The businessman building a Welsh empire after deportation nightmare
UK Government planning energy blackouts this winter with planned power cuts for homes and businesses
The Wales restaurants and businesses rated zero for food hygiene
