Frankie Dyer, managing director of Barbakan Delicatessen and Bakery in Chorlton, has renewed her plea for government action after her open letter to Prime Minister Andy Burnham went viral last month. Despite a turnover of £2.3m a year and numerous awards, the business is struggling to pay its bills, she said.
The deli, which has been a staple of the Chorlton neighbourhood for more than 60 years, was run by Dyer's parents for several decades before she took over. She now manages the full operation of the Chorlton site and a smaller sister site in Wilmslow.
In her letter, Dyer told Burnham that her 'bank balance is finished' and pleaded with the Labour Party leader to give the sector a 'fighting chance of survival'. She said the business had been left with 'nowhere left to squeeze' despite 'doing everything' the government keeps 'asking British businesses to do'.
Costs spiral for the bakery
Dyer detailed the struggles of the industry over the last five years, from Brexit and Covid to rising energy and fuel costs, food shortages and inflation. The business is contending with increasing wage bills, higher employer National Insurance Contributions (NICs), and higher business rates.
Speaking to the Manchester Evening News, Dyer said she had been prompted to speak up after attending a Craft Bakers Association event. "No one was saying how business was because we all know what our bank accounts look like," she said.
She explained that since the 2024 budget, she has tried to increase turnover through events catering, markets, and the second site in Wilmslow, but "the profit is still down. It's going down every year because of the costs you can't control."
Pressure to cut staff and invest
Dyer said she has had to consider replacing skilled bakers with machinery and adding self-service kiosks, but that "annoys me because why should I have to do that - that's the fabric of who we are and what we do." She added: "Why should our government put us in a position where I have to cut staff, or replace good staff with machinery to pay our taxes."
The open letter attracted local and national attention, with the BBC putting the Prime Minister on the spot about it. Dyer said Burnham "indirectly acknowledged it and I've been told I'm on his radar", but added: "He's done his Labour Party Conference, and talked all about hope and growth but still not mentioning what we've been campaigning for."
The business is asking for a VAT reduction, a business rates scrap, and lower NICs for employers. Dyer noted that UKHospitality has been looking at not doing a blanket VAT reduction but something "aligned to size and turnover amount".
Rising costs and staff shortages
According to UKHospitality, UK hospitality businesses have faced a combined annual cost increase of £3.4 billion this year from rising wages, employer National Insurance contributions, and business rates.
Dyer highlighted that Brexit has made importing European meats and flour more expensive, with a palette of German flour now costing about £500 more in logistics. She also noted that skilled bakers are now "gold dust" because Eastern European workers cannot easily get work visas, so salaries have doubled since Brexit.
Energy bills have risen from £4,000 a month to £10,000, with the price per kilowatt rising from 14p to about 48p. Business rates have jumped from £9,000 to £36,000 this year. "The average spend here is only £8.50, we're not selling Ferraris, we're selling coffee and pastry," she said.
Dyer also mentioned additional red tape around cross-contamination, labelling, allergens, and ingredient declaration, which has required a full-time person in the office to manage.
Action needed now
The National Living Wage rose by 4.1 percent to £12.71 per hour in April 2026, while rates for 18-20-year-olds climbed 8.5 percent to £10.85 per hour, adding roughly £2,500 in extra costs per full-time staff member, according to the Nationwide Caterers Association (NCASS). Recent changes to business rates mean English hotel business rates jumped 30 percent on average and restaurant rates rose 15 percent.
Dyer said action is needed now: "It's now or never for Andy Burnham to do something drastic to address it." She noted that the business has been going for 62 years and she has been managing director for 15 years. "I've seen the change. It's a completely different environment now for business owners and we're all cutting down."
She also highlighted the cost of new ovens this year at £100,000, and said she does not have the capital for other improvements. "Whatever they do I don't have hope that it's going to be enough, but I have hope that Andy Burnham genuinely would want to help the highstreet."
For Dyer, Barbakan is not just a business but a family. "This place is like a family member or a home," she said. "It's someone's dream and livelihood, or part of someone's routine. Imagine a world without these places, it would be depressing."
A Government spokesperson said: "The Chancellor prioritised support for the hospitality sector in his first week in the job by cutting business rates by 20% for pubs, social clubs and live music venues in England. As has always been the case, the Chancellor will set out decisions at fiscal events, rather than routinely commenting on rumour, speculation or proposals."
