Merrie England Cafe Chain Closes After 60 Years Amid Rising Costs
West Yorkshire institution cites increased expenses and reduced customer spending as factors in its shutdown, mirroring broader industry struggles.
Image: Eddie Pollard / AI
Carla Rooney
Merrie England, a West Yorkshire cafe chain with six branches, has ceased operations after 60 years, marking the end of a local institution.
The decision followed a sustained period of increasing operational costs, including energy, business rates, and staff wages.
The chain also experienced a reduction in customer footfall and overall spending, necessitating unsustainable price increases.
Merrie England described the decision as incredibly difficult, citing a sustained increase in the cost of goods, business rates, energy costs, and wider rising costs associated with staffing and government policy.
Alongside these pressures, the company saw a reduction in footfall and customer spending; many people were unable or unwilling to pay the prices businesses now need to charge to survive.
The chain, known for its distinctive Tudor-themed cafes and classic British dishes like teacakes and apple pie, attributed its demise to rising costs and government policy; Neil O'Brien claimed Labour policy directly contributed to the demise of what he termed 'Huddersfield's answer to Starbucks.'
Huddersfield's answer to Starbucks.
This closure is not an isolated incident within the hospitality and retail sectors; other long-standing businesses have also faced significant challenges.
Coughlans bakery, a chain operating for nearly 100 years, announced its own closure on June 30, 2026, citing tax increases and spiking fuel prices as primary drivers.
Sean Coughlan stated the company faced an extra weekly bill of £20,000, with the fuel bill alone doubling from £3,000 to £6,000 due to the crisis in the Middle East.
Coughlans bakery also claimed a recent heatwave proved the 'nail in the coffin' for its operations, compounding existing financial pressures.
Sean Coughlan indicated that The company faced an extra weekly bill of £20,000, with the fuel bill alone doubling from £3,000 to £6,000 due to the crisis in the Middle East.
Beyond the food sector, Claire's, a jewellery and accessory firm, entered administration in January 2026, with bosses attributing their situation to highly adverse government fiscal policies, high inflation, and weak consumer confidence.
In the broader retail landscape, William Hill announced plans to close 200 of its high street branches, reflecting a significant contraction in the gambling sector's physical footprint.
Margot Italian, a London restaurant, also announced its closure, effective June 28, 2025, joining a growing list of independent establishments unable to withstand current economic pressures.
Unspecified parts of the hospitality industry claim policies introduced under Sir Keir Starmer and Rachel Reeves have increased sector pressures, including hiking National Insurance rates and minimum wage costs.