Popular cafe closes after wage increases and National Insurance hikes ‘cripple' venue
DISHEARTENED cafe owners were forced to close their business after they were crippled by National Insurance hikes.
TickTocks in Kent had become unviable after the new regulations came into place on April 6.
The government increased the rate of employer National Insurance Contributions from 13.8 percent to 15 percent.
The move was widely criticised by business leaders, who warned the move would lead them to hike prices.
For small businesses across the country, the additional cost has been too much to bear.
Teresa and Dave, who own the Rainham cafe, took to social media to announce the closure.
"It is with great sadness and a heavy heart to tell you that TickTocks will be seizing trading from 4pm today.
'This decision didn't come lightly and we are absolutely heartbroken to have to come to this decision but with the over heads and the new regulations put in place regarding wage increase has just crippled us.
'Thank you so much to all of our regular customers that kept us going for as long as we could.'
Loyal customers flocked to share their shock over the closure.
"So, so sorry to read this!! Such a lovely, friendly place," one wrote.
"I'm so sad to hear this. I brought my nan in for an afternoon tea for her birthday last year and she said 'it was the best she'd ever had'. Such a shame the rising costs of everything are forcing so many lovely places to close," a second added.
"You're our favorite cafe. Thank you for all your wonderful hospitality and kindness - you were our extended family," said a third.
One pointed out that the parking cost increase had become a deterrent for some potential customers.
"I have to say that since the parking costs increased in Rainham I now go elsewhere to shop for the bits I would have once bought at Rainham shopping centre," they explained.
"Unfortunately, this includes grabbing a coffee and cake elsewhere too. I wish you all the very best in the future," the person added.
More closures could be on the horizon due to upcoming hikes in employer National Insurance Contributions (NICs) and the national minimum wage.
Many food and drink businesses have faced significant challenges recently, as the rising cost of living has led to a decline in dining out.
After struggling to recover from the impact of the pandemic, many establishments were then hit with soaring energy bills and mounting inflationary pressures.
This has forced several well-known chains to shut locations, with big brands like Wetherspoons and Frankie & Benny's among those affected.
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
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