Hospitality industry at breaking point, restaurant owner says
Hospitality industry at breaking point, restaurant owner says
Kaleigh Watterson - Cheshire political reporter in Nantwich, CheshireSat, June 6, 2026 at 6:31 AM UTC
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Kelly Woodnutt owns two businesses in Nantwich
The owner of two hospitality businesses in a Cheshire market town has said her industry is at "breaking point" as she calls for more support from the government.
Kelly Woodnutt, who owns St Martha's and Edward's Deli in Nantwich, said she had written a letter to her MP calling for support including for VAT to be cut to 10% for the industry out of "desperation".
More than 50 local businesses signed the letter to Connor Naismith, who said he had raised it with the chancellor.
The government said it was "taking action on the cost of living to boost the sector".
"We've been firing warning shots now for the last six to seven months about the state the industry's in and the pressures we're under and it's got to the point now where it's at breaking point," Kelly Woodnutt said.
"We are at the point that if things don't change and we don't get some relief, we will have to close our doors."
She said VAT being reduced to 10% for the industry would give them "a bit of breathing space in the hope that things will start to settle".
"It's not going to change the world, it may not even be enough but it's the one point that we can say, 'look this is unfair and we need some relief on it'," she said.
Woodnutt added that a reduction to 10% would bring the UK more in line with other countries in Europe.
A number of leading chefs have also called for VAT to be reduced to 10% for the industry.
Harry Picken's family business employs 68 staff across five sites in Cheshire.
Businesses are facing rising costs which is having an impact on how they operate.
Harry Picken's family have run Ginger and Pickles for 21 years. It now has five sites and employs 68 staff.
More expensive ingredients and energy costs are among the challenges the business is facing, but one of the major issues is staff.
"The vast majority of our costs relate to employment, so we have 68 staff and have large annual and monthly employment costs," he said.
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"With increases in national living wage and national minimum wage, it increases costs massively."
He added the business had been very keen to employ younger people but it was "becoming harder and harder".
"If you have someone who is 30 and applying with five years of experience, they're probably going to get the job over someone who is 18 with no experience," he said.
"It's great taking that punt with a young person, because they gain communication skills from it, we get their enthusiasm and everyone benefits. But when the costs are more or less the same, it becomes much harder to justify that."
Connor Naismith said: "I want to thank Kelly and all of the other hospitality business owners across Crewe and Nantwich who have raised this with me.
"My job as their constituency MP is to take their campaign straight to the corridors of power and that is what I am doing and will continue to do.
"Indeed, I spoke directly with Rachel Reeves about this on Tuesday and will continue to apply whatever pressure I can in the coming weeks and months to provide hospitality with a much needed lifeline."
The market town of Nantwich has a number of independent hospitality businesses.
For Picken, he is concerned that letters such as the one he signed can just be treated with "lip service".
"They might have their time in the news, but actions speak louder than words," he said.
"The whole industry is at such a critical turning point that actions have to happen.
"If not, we're not years away from seeing closures, we're months, possibly weeks off seeing an increase in closures."
Kelly Woodnutt said that although Naismith had been supportive, the industry needed to "keep pushing and keep making our voices heard".
A spokesperson for the Treasury said: "We have the right economic plan - we're backing hospitality by cutting VAT on family attractions and kids meals this summer, reforming business rates, with a £4.3bn support package to limit bills rises, capping corporation tax at 25%, cutting red tape and taking action on the cost of living to boost the sector."
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Top UK chefs call for cutting VAT for pubs and restaurants to 10%
British pubs closing at a rate of almost two per day in 2026
Source: “AOL Money”
