Tap and Tonic owners in Grantham say utility price rises, supplier hikes, business rates and government tax rises placed ‘unbearable strain’ on business and led to closure

The owners of a cocktail bar which has closed have said economic pressures made it “impossible” to continue trading.

Tap and Tonic announced it had permanently closed its Grantham Market Place venue with a Facebook statement on Tuesday (October 14), the same day another town venue, Retro Bar, also announced its closure.

The cocktail bar was taken over by Vencha Capital in August 2024 after the Adams family retired due to health issues and retirement plans.

At the time, the company outlined plans to revitalise its role as a community hub following a period of reduced footfall caused by Market Place roadworks.

In a statement, the owners said: “It’s with great sadness that we confirm Tap and Tonic has closed its doors.

“Despite the incredible support from our loyal customers and hardworking team, the economic pressures facing the hospitality sector have made it impossible for us to continue trading sustainably.”

They said significant increases in utilities, supplier prices, business rates and government tax rises had placed “an unbearable strain” on the business.

They added that reduced customer numbers, particularly mid-week, had made it increasingly difficult to cover rising costs.

It comes at a time when the Government’s only solution to help flailing pubs and venues is to scrap alcohol licensing notices in a move that will leave ‘communities shrouded in secrecy’.

“We’ve poured savings into Tap and Tonic to try and keep it going, but this is something that is impossible to continue with no end in sight from the government's tax increases and costs of sale constantly going up,” the statement said.

They said that despite introducing new menus, events and offers, wider challenges in the hospitality industry ultimately proved “too severe”.

“We’re deeply grateful to everyone who has supported us — from our guests to our dedicated staff — and we take pride in the community we’ve built in Grantham,” the statement added.

“It’s been a privilege to serve you, and we hope the spirit of what we created here continues to live on in the town’s independent hospitality scene.