Leamington restaurant to close after rising costs

Leamington restaurant to close after rising costs
As the Magic Wingdom in Leamington Spa closes for the last time this Easter weekend, the co-owner says rising costs, government policy and the cost of living are behind their decision to shut the doors.
The chicken wings restaurant began with an idea in 2018, and with its distinctive branding, it quickly became a hit in the town.
But it was during the covid pandemic that it really took off as a takeaway service, gaining a big following.
Now, eight years on, they are to close for the final time on Easter Saturday.
Leamington has historically had a higher than average number of independent businesses but Magic Wingdom co-owner Sam Cornwall-Jones says a lack of support has changed that.
"I would say on the high street, it's half what it used to be. Yes, it used to be a Mecca for independents, and there are still a fair few. But there are big chains as well, and they do very well because they can afford the high rents."
From April 2026, the minimum wage for over-21s will rise by 50p to £12.71, with workers aged 18-20 seeing an 85p rise to £10.85.
National Insurance (NI) contributions from employers have also increased. From April last year, employers have had to pay NI at 15% on salaries above £5,000, up from 13.8% on salaries above £9,100.
Cornwall-Jones says that has also had a big impact on their business.
"The government's increase on National Insurance and minimum wage has been crippling for hospitality, and particularly us.
Business rates will also increase sharply over the next three years as Covid-era support is phased out and property values are adjusted to reflect a return to normal business after the pandemic.
"The oncoming rates in April will make a huge difference, although not to us, because we won't be there."
'a terrible algebra situation'
The cost of living is also being partly blamed for the closure, with footfall for the restaurant also down.
"Sadly, there's less money in people's pockets, it causes grief for everyone. People can't go out as often as they want to," Cornwall-Jones continued.
"Food prices have changed a lot, the Ukraine war, the bread basket of Europe was a huge thing for oil costs. There's the risk of avian flu, all of our chicken is British, that's something we've sort of celebrated, Red Tractor approved, it's all increasing slowly."
"There's a terrible algebra situation going on here of all of these things will equal 'bye-bye'."
The rate of VAT - the tax paid when buying goods and services - is 20%, one of the highest rates for hospitality in Europe.
The 51-year-old believes the tax needs to change to take the pressure off cafes and restaurants.
"VAT, we're paying more than anywhere in Europe. Small independent businesses can't afford it. We're sad to be another statistic, but that's what we are. And until anybody pays any attention to that, nothing's going to change."
'The biggest thank you'
As they prepare for their final couple of days the team believe there is some hope they could return in the future in some form or another.
Cornwall-Jones wanted to thank customers for their support over the years.
"Without getting teary, the biggest thank you in the world to everyone who has looked after us and supported us and come to WingFests and food festivals, and all of the support we've had from Leamington and further."
"It's amazing that there is so much love, it's just a shame that we can't keep spreading it in quite the same way from those doors. But there is a slim chance that you might see us elsewhere in our magic little bus."