Small businesses worried about their future due to lack of local support

Local businesses are worried about their future on Acorn Road in Jesmond
Source: Ayushi Shah

Business owners in Jesmond are worried about the future of their enterprises amidst increasing business closures and empty premises in the area.

Jesmond Residents Association (JRA) chair Kathy Cunningham believes communication between residents and business owners is key to solving the issue. 

Emma Wass, co-owner of Chucho’s, an independent, family-run Mexican food restaurant on Acorn Road admits business hasn’t been as busy as they thought it would be when they opened two years ago.

“It is a bit worrying to watch shops close on Acorn Road. Filmore and Union closed, a couple of other shops are empty now as well,” said Wass.

“Apart from the skyrocketing rents of Jesmond, a massive issue are the high business rights that business owners have to pay. This makes it difficult for a small, local restaurant like us to compete with larger food chains. Help and support by the business team in the council would also be greatly appreciated.” 

Was adds that the restaurant is trying really hard to be a part of the local community.

Apart from serving authentic Mexican food, they also run socials for people to learn Spanish and occasionally host cultural events to engage the community.

She says that the area lacks initiatives to support local businesses and they sometimes have trouble even distributing flyers to promote their business. She has been meeting with local councillor Wendy Young to tackle the issue and discussions are underway. 

Analysis from Totally Locally, a movement that encourages people in the UK to support local independent businesses and shops, if every adult in Newcastle spent £5 per week locally at independent shops rather than online or in big supermarkets, it would mean an extra £58.5 million each year going into the local economy. 

Thomas Bell, General Manager of the recently opened Tomahawk
Source: Ayushi Shah

On the other hand, Thomas Bell, General Manager at Tomahawk, is more optimistic about the area. The restaurant occupies the same premises as Filmore and Union and opened its doors in December last year. He says that sales are picking up as the word spreads. 

Bell doesn’t worry that having other restaurants and food chains like Greggs on the street make business too competitive. “It is one of the busiest streets in Jesmond and everyone likes to help each other out,” he said.

“People go to different restaurants for different kinds of food and they are going to go to bigger chains because they can afford to give out the discounts. But so if we maintain the right price and quality – I am positive we will be successful.”

However, he added: “The rent is obviously high which isn’t very favourable for businesses. We have to increase our prices to cope which can push students away. Plus, we anticipate a hit when the students are away on their break but are hoping that the locals come in and support the business.”

But while businesses are worried about the lack of local support, some local residents are sceptical and worry about the rise in anti-social activities due to these businesses. As Tomahawk applies for an alcohol licence, a concerned resident on the Newcastle City Council website stated: “While I welcome the fact that a previously empty unit is now being used, I am concerned that an increase in anti-social behaviour around Acorn Road could occur.”

JRA Chair Cunningham said: “Residents do need to support local businesses because they can bring so much to an area. If there is increased footfall on the street, it helps regenerate the area.”

Cunningham is particularly concerned that in recent years two banks – Llyods and Barclays – have shut their Jesmond branches.

“People will have to go to Gosforth or Heaton to go to a bank, which naturally will have an effect on the local community,” she said. “Many premises on Acorn Road are just empty, and Clayton Road businesses are also facing trouble as business owners witness lower footfalls.

“While I understand the rightful concerns by residents, communication between the business owners and the residents is extremely important to help Jesmond grow.”