We cannot survive soaring costs, says restaurateur

Owner and chef of the Sooty Olive in Londonderry Sean Harrigan says rising costs forced him to close

Soaring costs are forcing a Londonderry restaurant to close permanently, its owner has said.

Sean Harrigan, owner and head chef at The Sooty Olive, said increases in energy and food bills and business rates were all factors in his decision.

It will close later this month.

Mr Harrigan told BBC Radio Foyle’s North West Today programme it had become increasingly difficult to absorb the rising costs.

"You were constantly fighting to pay bills," Mr Harrigan said.

"If you had a wee bad week or two weeks it was very hard to recover.

"You had to find that money from somewhere and it just became more and more difficult to find the money to keep yourselves open."

He added: "Every corner we turned, everywhere we looked, everything was increasing and a small restaurant like ourselves, it just wasn't worth it."

Selena Horshi from Derry’s Chamber of Commerce said there was a sense of sadness and shock at the restaurant’s closure.

“I know it is so hard at the minute but The Sooty Olive has such a fantastic reputation,” she said.

“I think it really brings to light how hard it is, when somewhere with such a great reputation, such good standing in the city, somewhere that always felt busy still can’t justify keeping their doors open”.

The Derry restaurant is the third in Northern Ireland to announce its closure in recent days.

Broker in east Belfast and Clenaghans in Aghalee in County Antrim have also said they are to close their doors.

Ms Horshi said Northern Ireland’s hospitality, retail and tourism businesses are in need of a similar rates relief scheme which exists in England.

A 75% business rates relief scheme was introduced there in November 2022 to support businesses in the retail, hospitality and leisure industries.

A similar scheme in Northern Ireland, Ms Horshi said, would result in a direct cut to businesses’ running costs.

Without government help, further closures are a real concern, she added.

Cafe owner Kiera Duddy says hospitality businesses need more help from government

That’s a sentiment shared by Kiera Duddy, owner of the Pickled Duck cafes in Derry.

She said with it impossible to pass rising costs onto customers, it had become increasingly challenging to operate in the hospitality sector.

“You have to keep your finger on the pulse, can’t take your eyes off the bills, have to put in all the hours, you can’t take a break,” she said.

“It is everything, every bill, VAT, the rates, everything. I do think with the VAT we need help and a bit of rates relief would go a long way”.

'We are living off our own money'

Dianne Guthrie owns the Brew Room Tea Room in Derry's Waterside.

It had been her life-long ambition to open a coffee shop when she retired.

Her business rates cost about £4,500 annually. That’s a huge amount for any small business to take on, she said.

"I am not even taking an income out of the business as it's only open a year. Me and my husband are living off of our own money at the moment,” she said.

Stormont’s Department of Finance said there was a variety of help for business ratepayers in Northern Ireland.

That help, the department said, included the small business rate relief scheme which supports 29,00 ratepayers.

“The Finance Minister has also laid legislation on the restoration of the Back in Business scheme and the Rural ATM exemption, which will be subject of Assembly debate early next month,” the department said in a statement.

It added: “The reintroduction of these schemes will further help to support small business on our high streets”.