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Government: 'We recognise it's a very challenging time for hospitality'


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4 hours ago, Kopek said:

The problems with giving a subsidy to a business sector are...

How will the saving be distributed?

Will it go to lower prices to increase footfall?

Higher wages to staff?

or higher profits? This can sometimes be justified if profits have suffered since covid!

Also, the subsidy could be given to business' that don't require it? This could deter the Govt getting involved?

I've never been to the Victory cafe, I don't know their menu, price  structure or popularity. They report on Manx Radio  that they paid 15k  VAT for the winter, that would equate to circa 100k turnover, for the winter??? One would imagine their summer turnover to be even more? They're struggling on that???

OK, people exaggerate for effect but...........

They manage it with the construction sector. VAT subsidies for new builds and domestic work, and unnecessarily dreamt up capital projects to keep their favourite contractors happy, with carte blanch on the finished price regardless of what they've quoted and regardless of their performance or after sales service on previous jobs.

For example, I see the price of the old nurses home has already hiked by over £2 million with no questions asked, the main contractor of which was the same one that means various parts of the NSC pools have been closed on and off since it's multi-million pound refurbishment a few years ago, with no end to the saga in sight.

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17 hours ago, display name said:

It hasn't. That woman has been moaning about them since taking on the wrong property

Unfair.

I lost out on that property for a business proposal that wouldn't have been subject to the vagaries of needing staff to service customers. There was without doubt an opportunity for something like they have created, but as is often the case, timing was unfortunate. Covid took the fair wind out of their sails/ sales, with two TT's lost and all that entails.

The fact they are still there is a testament to their grit and determination to make it work. Remember they are DOI tenants too, which is never an easy gig. The fact that Vicky has the confidence to say what others are thinking is great.

Victory is now a landmark business. Government should be doing all it can to sustain places like that. The owners won't be making an outrageous living and I know they are trying to sell off their cider business too. Losing more places like this and the Tea Junction is not a good look for the Island. 

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4 minutes ago, Derek Flint said:

Government should be doing all it can to sustain places like that.

No they definitely shouldn't. I don't know why they are finding it hard to get staff at a location half way up the mountain where there are no buses and you certainly can walk.

It's up to businesses to make sure they have a proper business plan, not for the rest of us to bail them. 

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14 hours ago, TheTeapot said:

Its a depressingly negative spiral. Businesses need to charge a price where they can attract customers and make a profit, but customers need to pay a price they can afford. I rarely eat out any more because everything everywhere is too expensive, and it is just not worth it. Which is crap.

 

 

 

 

I think the message from The Tea Junction audio clip is that people on average incomes are increasingly feeling the pinch. The fact that Wine Down is supposedly not experiencing the same decline in trade suggests to me that their clientele are richer and are not yet feeling financially squeezed - that the IOM society has truly divided into those who can continue to afford whatever they want whenever they want it, and those who are having to make tough personal choices daily. This is a real shame and is not conducive to a harmonious cohesive society.

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22 minutes ago, Happier diner said:

It's up to businesses to make sure they have a proper business plan, not for the rest of us to bail them. 

I hope your sentiments/ words don't come back to bite you...

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Just now, code99 said:

I hope your sentiments/ words don't come back to bite you...

Why would they? This has always been the case. Governments should support businesses especially at start up. However if a business model just doesn't work then I an afraid that should be the end. Its our money at the end of the day. 

@Derek FlintFlint said they should "do everything they can". That's clearly not right. They might be able to help in some ways and they should do that, but "everything"? No 

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4 minutes ago, code99 said:

I think the message from The Tea Junction audio clip is that people on average incomes are increasingly feeling the pinch. The fact that Wine Down is supposedly not experiencing the same decline in trade suggests to me that their clientele are richer and are not yet feeling financially squeezed - that the IOM society has truly divided into those who can continue to afford whatever they want whenever they want it, and those who are having to make tough personal choices daily. This is a real shame and is not conducive to a harmonious cohesive society.

looking at the clientele   using Wine down  I would imagine a lot of the dinning cost will be  put on business expenses and entertaining , but as we have seen in other  successful establishments   people will pay for quality  , I have eaten in there several times and enjoyed  the food and service  at the end of the day you get what you pay for  and its the survival of the fittest in the catering word 

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Quite a number of posters commenting on this latest closure on FB who are claiming that a VAT reduction for hospitality is within the gift of the Govt.

The gift possibly yes, but not the will of Treasury.

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13 hours ago, Omobono said:

cafe 360 on the business park is packed out every day , not cheap by any means but excellent food well prepared ,tasty  and plenty of it ,  bottom line 

excellent value for money  , they certainly know how to run  a successful  catering and coffee establishment  , and plenty of parking as well ,and the staff are excellent most have been there since they started  nearly 3 years ago 

Also to add,they are bang in the middle of a business park so footfall at their doorstep with MT MUA and numerous other business's how could they fail? Go into Newsbeat up in the same area and its rammed at lunchtime.

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38 minutes ago, Beelzebub3 said:

Also to add,they are bang in the middle of a business park so footfall at their doorstep with MT MUA and numerous other business's how could they fail? Go into Newsbeat up in the same area and its rammed at lunchtime.

Newsbeat on Bucks Road/Mona Street is always busy, both morning tea break and lunchtime. 

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1 hour ago, Beelzebub3 said:

Also to add,they are bang in the middle of a business park so footfall at their doorstep with MT MUA and numerous other business's how could they fail? Go into Newsbeat up in the same area and its rammed at lunchtime.

Exactly. They're the only show in town up there, I think that has more to do with their success than anything else. It's an expensive and unremarkable place IMHO in quite a souless building.

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1 hour ago, A fool and his money..... said:

Exactly. They're the only show in town up there, I think that has more to do with their success than anything else. It's an expensive and unremarkable place IMHO in quite a souless building.

I can't stand the place. However if I go by there its always busy. And that's the thing isn't it. Individual opinions are irrelevant. The success is guaged on the result. Same with wine down. Not my favourite place in the world. Good wine, mediocre food,cafe like feel. But, as with cycle 360 they clearly know better than me in that know what people like and they reap the rewards by being busy.

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7 hours ago, Happier diner said:

Why would they? This has always been the case. Governments should support businesses especially at start up. However if a business model just doesn't work then I an afraid that should be the end. Its our money at the end of the day. 

@Derek FlintFlint said they should "do everything they can". That's clearly not right. They might be able to help in some ways and they should do that, but "everything"? No 

I think you are being a little disingenuous. 

Hospitality is a life blood. It means that the indigenous community can socialise, but it also means that visitors get a first class experience. That in turn sells the island as a viable proposition for incomers. 

It makes the place look good.

So yes, they should be doing everything

Energising, enabling, granting, cutting costs, investing, and most of all, not interfering 

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11 minutes ago, Derek Flint said:

I think you are being a little disingenuous. 

Hospitality is a life blood. It means that the indigenous community can socialise, but it also means that visitors get a first class experience. That in turn sells the island as a viable proposition for incomers. 

It makes the place look good.

So yes, they should be doing everything

Energising, enabling, granting, cutting costs, investing, and most of all, not interfering 

Sounds good but they're too stupid to realise the affect draining the public's wallet has on the economy.

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Pretty sure I'm picking up that covid travel is still down around 8% before covid started. Add 8% (though more like 30%) to your business operating costs too, little wonder businesses are struggling.

Even if they travel, people are also generally spending less currently, as they have faced inflation too.

Covid also changed a lot of travel habits. Some will probably prioritise cheaper foreign packages in the sun first. Some will have discovered the UK over covid and have realised there's a lot of nice places to go to there, and they are a lot cheaper to get to than the island.

 

.

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