Acorn Road cafés say they are having to increase the prices of their food and drinks in response to increased costs. Stanley Bull, owner of Brew Bakehouse on Acorn Road, told JesmondLocal that energy costs were becoming a significant expenditure for his coffee shop.

Rises in energy impact food and beverage businesses more than most, according to research by the Office of National Statistics (ONS) in March 2022.

And last month’s survey by the ONS suggests food and drink service businesses such as cafés were more likely than any other industry to cut trading by at least two days per week to reduce energy costs. More than 1 in 20 businesses in the sector (6%) said they planned to stop trading for two or more additional days a week.

The same percentage of food and drink service businesses said they had already done so in the last three months – the highest of any group. They were also the most likely to reduce trading hours, even if they were still operating for the same number of days (21%).

Guy Pike, owner of Local NCL coffee shop, also on Acorn Road, says being on a fixed electricity tariff has helped to control his costs, although he admits he has had to introduce some price rises. Sourcing local produce has also been a factor in being able to keep prices from rising too high. “A lot of our suppliers come from small local suppliers, within 20 miles of here,” said Pike, “so we don’t rely on big companies or large numbers of imports.”

Likewise, Brew Bakehouse’s Bull said: “We only buy raw materials from local people and make our products in our own shops.”