Cost of Living: Seaside businesses struggle as crisis hits Scarborough

As energy bills and taxes soar, and wages and profits remain the same, many people and businesses are facing the cost of living crisis.

The Denison Arms are just one business who have felt the impact of the crisis. Zoe Spendlove-Flynn said: “We have had to change our menu choices on offer, by trying to offer choices that are more affordable to us as the buyer and to the customers' affordability.

“We have noticed that without tourists in the area, trade has dramatically decreased.”

Pubs in the Scarborough area feel that they are competing with supermarkets on alcohol and drink sales, and are relying on their food sales to stay open.

Mrs Spendlove-Flynn agreed and said: “We are solely reliant on our food sales costing the bare minimum for profit and to enable our business to remain open.

“We can see this is only going to become increasingly difficult as we head more in to the winter months.”

With high energy prices and a low amount of tourists in the town, businesses and especially hospitality businesses are struggling to stay open as often as they would like.

One example is Winking Willy’s. The family-run business has needed the huge surge of customers during the summer months as it is what so many seasonal businesses rely on, but at the moment the chip shop can’t capitalise on it.

“We’ve been shutting earlier. Me and core staff have been doing 11-12 hour shifts.”

Before the popular chippy opened until 10.30pm but even on busy days they had to close shop by 8pm

The Denison Arms is in a similar position.

“We are in a situation where we may have to keep the business closed on certain days and not be open seven days a week as we have always traded.

“This to save on energy costs and staff costs whilst keeping the business in a profitable situation.”

The cost of living crisis is not only affecting hospitality businesses, but those who rely on an office and electricity to run.

Marson & Co are design, print and marketing specialists and are based on Westborough.

High energy bills have also impacted their business.

Chris Marson, owner of the company,said: “The rising costs of energy is our biggest issue so far.

“However, we’re putting things in place to make sure we’re in the strongest position possible to come through the other side, whenever that may be!”

Marson & Co help local businesses market themselves to a larger audience. Mr Marson said: “I believe the crisis is starting to impact the town, and sadly the worst will come over winter.

“Energy bills are going up, and businesses are also trying to help their staff out financially whilst still recovering from the impact of COVID.

“The government can absolutely be doing more. The VAT threshold is too low, business rates are too high. It stunts the growth of SMEs. Overhaul is needed, as the current system is outdated.

“Those businesses who are agile, and adapt will survive, just like they did through the pandemic. We will sadly lose a few.

Mrs Spendlove-Flynn, owner of the Denison Arms, agreed and said: “It’s a very worrying and difficult time for all businesses within this sector and if the cost of living and energy bills keep increasing, I can see that well run businesses such as our own will suffer or even have to close.”