AN ICONIC bar unexpectedly closed its doors after four years of operation, leaving local patrons and the community in shock.
The Hard Rock Cafe, a Quayside restaurant in Newcastle known for its vibrant atmosphere and collection of music memorabilia, was unexpectedly found closed earlier this week, with its doors locked and curtains drawn.
The Hard Rock Cafe brand, established in 1971, has grown into a global phenomenon with venues in over 70 countries[/caption]
Factors contributing to these closures include rising operational costs, high energy bills and increased borrowing costs[/caption]
Legal documents indicate that administrators could be appointed, but no official statement has been released regarding the closure.
Established in 1971, the Hard Rock Cafe brand has become a global phenomenon, boasting locations in over 70 countries, including cafes, hotels, and casinos.
The Newcastle branch, opened in May 2021, quickly became a hub for music lovers.
It showcased memorabilia from artists such as Dua Lipa, Taylor Swift, and Amy Winehouse, while also championing local talent through live performances and events like bottomless brunches and New Year’s Eve celebrations.
However, in recent years, the hospitality industry has faced increasing economic pressures, leading to the closure of several Hard Rock Cafe locations worldwide.
Notably, branches in Glasgow, Paris, Ibiza and Fortaleza also shut down.
Disheartened fans quickly filled the comments section, expressing their disappointment.
“That’s so very sad,” one person wrote.
Another user shared: “I will miss the place so much, it was a home away from home in America.”
Others tagged friends to inform them of the unexpected closure.
The closure of Newcastle’s Hard Rock Cafe is part of a broader, concerning trend in the UK hospitality sector.
Rising operational costs, high energy bills, and increased borrowing expenses have forced many businesses to shut down.
In 2024 alone, over 400 pubs closed across England and Wales, bringing the total number of pubs below 39,000 for the first time.
According to the British Beer and Pub Association (BBPA), around six pubs shut down each week, leading to approximately 4,500 job losses last year.
Financial strains on the industry are expected to worsen in 2024, as businesses face higher National Insurance contributions and an increase in the minimum wage starting in April.
Employers currently contribute NICs for most employees earning over £9,100 annually, but upcoming changes could further challenge business viability.
Emma McClarkin, chief executive of the BBPA, has urged the government to implement meaningful business rates reform to help pubs and hospitality venues survive.
“The scale of these closures is completely avoidable because pubs are doing a brisk trade,” McClarkin said.
“Consumer demand is there, however, profits are being wiped out by sky-high bills, and pubs are facing yet more rates and costs come April.
“We’re right behind Labour’s mission to supercharge growth, but the government must act now.
“Pubs need support through business rate reforms and a phased approach to new employment costs.”
According to BBPA data, the number of pubs in England and Wales has declined from 47,613 in 2019 to 45,345 in 2024.
Unless urgent action is taken, closures are expected to continue.
What is happening to the hospitality industry?
By Laura McGuire, consumer reporter
MANY Food and drink chains have been struggling in recently as the cost of living has led to fewer people spending on eating out.
Businesses had been struggling to bounce back after the pandemic, only to be hit with soaring energy bills and inflation.
Multiple chains have been affected, resulting in big-name brands like Wetherspoons and Frankie & Benny’s closing branches.
Some chains have not survived, Byron Burger fell into administration last year, with owners saying it would result in the loss of over 200 jobs.
Pizza giant, Papa Johns is shutting down 43 of its stores soon.
Tasty, the owner of Wildwood, said it will shut sites as part of major restructuring plans.
In 2024, more than 400 pubs closed across England and Wales, reducing the total number to below 39,000 for the first time[/caption]
