Popular Derby restaurant details its reasons for closure

An independent Derby restaurant has cited high VAT as one of the reasons for its closure after 12 years.

The Wonky Table as an acclaimed and popular eatery in the city's Sadler Gate area - earning a top 10 place on Tripadvisor and garnering hundreds of positive reviews on Google.

It opened its doors in 2011 and instantly won over hungry diners with a discerning palate, with its emphasis on local produce and contemporary cooking.

Fast forward 12 years and having navigated the troubled waters of Brexit and Covid, The Wonky Table called service for the final time last month.

Spiralling costs have seen a record number of casualties in the industry as eateries fight for survival.

Experts from AlixPartners and CGA reported a decline of 1,611 hospitality premises over the final quarter of 2022.

DerbyWorld spoke to Holly Faulkner from The Wonky Table, who shared her thoughts about closing the restaurant, her hopes for the future and why high VAT is an issue that the UK Government needs to address urgently.

How would you describe The Wonky Table's journey?

It has been a bit of a rollercoaster. Even in the good times, it has always been hard - I wouldn’t do it again.

The market has changed a lot and it has always been a notoriously hard industry to make money in.

How have you found trading post-Brexit and Covid?

We weren’t too badly affected - we started to get in trouble a little bit pre-Covid.

Some of the grants helped us as we cleared a lot of debt off, so we almost started again.

We had a really lovely landlord who gave us free rent, then after Covid, everyone was so keen to get back to restaurants, turnover increased a bit - it was quite good.

We also had the low VAT period where it was at five per cent, then 12 per cent.

During that time we made more money than we had done in a long time and it was nice because we were able to reinvest in equipment.

We were actually OK during this period.

Why did The Wonky Table close?

We closed due to high costs - we simply couldn’t make profit.

The biggest issue is VAT - 20 per cent in this industry is way too high and we don’t have margins for it.

To give 20 per cent of our turnover away, no matter what - even if it’s quiet you’re still paying that - this is what made VAT one of our biggest problems.

It’s a big issue that the wider hospitality industry faces.

What do you think are the hardest challenges facing a new restaurant owner?

There are several issues - VAT is the main one and staffing is also another.

Chefs expect to be paid more, which is fair, so we are seeing chefs seek agency work and get paid £20 an hour.

It is tough for a small independent restaurant to match these wages - we’ve never been on anything like this.

There has also been a cultural shift in customers’ eating habits as people are dining indoors and swapping a restaurant visit for a takeout instead.

Parking is another issue that may be keeping people away from restaurants, although some pubs do quite well because they have parking on-site and it is easier and more accessible.

Crime could be a problem too - it freaks people out, there have been lots of incidents which may stop people thinking about coming into the city.

From a cultural point of view, there’s not enough going on to bring people into Derby, so I think investment in the city is needed.

We used to do well on pre-theatre menus with the Assembly Rooms.

Everyone benefits when there’s a good show on.

What is the nicest thing about having your own restaurant?

It is probably the pride element, the flexibility of having your own menu and being able to be in charge of what you serve and how you style the food.

One of the main reasons people open restaurants is because they get frustrated working for other people and they want to put their own stamp on dishes.

What can the Government do to help small businesses and the hospitality sector?

They have to reduce VAT for hospitality to five per cent, or 10 per cent at the most.

If you could tell Rishi Sunak one thing, what would it be?

Reduce VAT.

Sadler Gate was The Wonky Table’s home for over a decade, where you traded with other independents. What has their reaction been to Wonky’s closure?

The support from traders and the public has been really nice - we have hopefully managed to gain some interest in our catering business.

We’re not out of the industry - we have just gone into an area that is more amenable and with a better work-life balance.

What does the future look like for you, Holly, and your catering business Cherry Pickle Catering?

Cherry Pickle Catering is a private catering company where we make delicious food for weddings, buffets and events.

We have been doing outside dining events at the local community garden which we started during Covid, so it feels like we have a little bit of the restaurant back.

Our veggie nights with live music at Hannah’s Community Garden - we even use their vegetables - are popular and booking is highly recommended.

What do you see happening to the hospitality industry in the next five years?

There will be more closures leaving mainly chains that will survive.

It will be a lot harder for smaller businesses, maybe not as hard for the bigger companies.