Coffee Shop Closure Blamed On Soaring Rent & Business Rate Charges

Increasing rent and business rate charges plus soaring energy costs are being blamed for the closure of a Market Harborough coffee shop.

Owners of Stray’s on The Square say keeping it open would have threatened the future of its two other outlets elsewhere.

The shop opened in the former Edinburgh Woollen Mill premises in 2021 and customers are being thanked for their support.

Stray’s Director Mat Short told HFM a decision was taken not to renew the lease of the shop, saying: “We took the site on in good faith, back in early 2021, but since then, the cost of energy has soared, the cost of foods has gone up 3x, staff wages are very high and to top it all off, the 70% discount applied to Retail Business Rates will be lifted shortly.

“So currently we’ve been paying £60,000 a year rent (plus VAT), add to that the rates will go up to circa £31,000 a year. So just to exist, before we even open the doors, the cost is £8,000 per month. Add to that utilities at £2,500 per month, staff costs at £5,000 per month, food costs around £7,500 you can see the challenge a small independent is now facing.

“Initially, we had private investors looking at coming in to fund the store, but after their final assessment of the figures, they’ve decided instead to go ahead with us on another project nearer to home and have said, based on the forthcoming rates increases, that the Harborough site is not financially viable.”

This customer told HFM the shop will be missed:

It is hoped staff affected can be offered roles at the company’s outlet in Oakham and Mr Short added: “We’re currently working with the staff to relocate any of them to work at the Oakham store. If they opt not to, they’ll be paid wages and holiday pay etc and we sincerely hope they will find work elsewhere.

“It’s a sad day, to have to close the shop, particularly after all the hard work myself and the fab team there have put in. As a small business, we can’t afford to subsidise one store, to the detriment of the others and we have 30 staff to look after between the Oakham and Newark sites.

“All these factors have come into play in our decision to cease trading at Market Harborough.

“We’ve developed a small group of hardcore followers and on behalf of the team, I’d like to thank them for supporting us over this past two years.

Kyra Williams, President of Market Harborough Chamber of Trade and Commerce told HFM the closure raises concerns about the future of other independent shops and businesses:

 

A spokesperson for Harborough District Council said: “We don’t wish to see any business leave the high street, so it is regrettable the shop has decided to close.”