Key Points
- Hospitality industry faces severe challenges in 2025 due to rising costs of staff wages, food, rent, utilities, and food inflation.
- Customer side impacted by cost-of-living crisis, reducing frequency of dining out at high street restaurants.
- Prices have risen sharply, with £15 starters and £9 sides becoming common; Harden’s guide notes surge in London restaurants charging £250 per head.
- Peter Harden of Harden’s describes 2025 as the toughest year for long-term operators amid “gloomsterism”, yet highlights resilience with steady entries and high-quality newcomers.
- Giancarlo Caldesi abruptly closed his Belsize Village restaurant on Belsize Lane in January despite £400,000 revamp and positive reviews for pizza, pasta, and cocktails; replaced by pan-Asian Huo in September.
- Hussein Jabar Gadz shut his famous Finsbury Park café on Clifton Terrace in March due to financial pressures, antisocial behaviour, and a robbery; known as ‘the Corbyn Cafe’ for its photos of Jeremy Corbyn, a regular customer and Independent MP for Islington North.
- Broader trend of closures across North London driven by economic pressures, with multiple eateries affected.
What Makes 2025 the Toughest Year for Hospitality?
As reported by Peter Harden, editor of Harden’s restaurant guide, the industry toils under a cloud of “gloomsterism”. He wrote:
“Hit by food inflation, rising wages, relentless rent increases and soaring utilities – some long-term operators say that 2025 is the toughest year they can recall.”
Yet Harden detects resilience amid the gloom.
“However, what our survey results from across the sector shows is the remarkable resilience at work from those in the trade: our number of entries remains very steady and newcomers are emerging of a quality that is probably better than ever,”
he added.
These insights from Harden’s annual survey paint a picture of a sector under siege but not defeated. North London, with its dense cluster of independent eateries, exemplifies the struggle. From family-run cafés to chef-driven bistros, closures have dotted the landscape, leaving gaps in vibrant neighbourhoods.
The ripple effects extend beyond owners. Staff redundancies mount, supply chains feel the pinch, and local communities lose cherished landmarks. Economic analysts link this to broader UK trends, where hospitality insolvency rates have climbed 20% year-on-year, per recent ONS data. In North London boroughs like Camden and Islington, the impact feels particularly acute.
Which Iconic Belsize Village Spot Shut Despite Revamp?
One of the year’s most surprising closures hit Belsize Village in January. TV chef and cookery school guru Giancarlo Caldesi abruptly shuttered his eponymous restaurant on Belsize Lane. Despite a £400,000 revamp and glowing reviews praising its pizza, pasta, and cocktails, the venue could not withstand the pressures.
Diners had flocked to the spot for its Italian authenticity and lively atmosphere. Social media buzzed with praise post-refurbishment, yet financial realities prevailed. Caldesi, known for his Calabrian roots and TV appearances, offered no detailed public statement on the closure, but industry whispers point to unsustainable overheads.
What Replaced Giancarlo Caldesi’s Eatery?
In a swift pivot, pan-Asian restaurant Huo opened in September, aiming to fill the void. Early signs suggest optimism, with hopes it endures longer than its predecessor. Local observers welcome the fresh concept, blending East Asian flavours in a neighbourhood craving variety.
This turnover highlights North London’s adaptability. Belsize Village, with its affluent yet cost-conscious residents, demands resilience from newcomers amid ongoing economic flux.
Why Did the ‘Corbyn Cafe’ in Finsbury Park Close?
Further north, Finsbury Park mourned the loss of a community staple in March. As reported by journalists at Hampstead Highgate Express (Ham & High), Hussein Jabar Gadz shuttered his Lebanese café on Clifton Terrace after years of operation.
Gadz had built a loyal following with falafel salads, cakes, and coffee. The café earned fame as ‘the Corbyn Cafe’ due to walls plastered with photographs of Jeremy Corbyn, the Independent MP for Islington North and a regular patron.
Financial pressures proved insurmountable. Gadz cited escalating costs, antisocial behaviour in the area, and a robbery as key factors rendering the business uneconomic. “It was just too much,” locals quoted him as saying in the Ham & High coverage, capturing the despair felt by many independents.
Corbyn himself frequented the spot, underscoring its role as a neighbourhood hub. Its demise symbolises wider woes for casual dining venues, where slim margins leave little room for external shocks.
How Are Rising Costs Squeezing North London Eateries?
The closures form part of a grim pattern. Unattributed industry reports from Harden’s and local outlets detail similar tales across Camden, Haringey, and Barnet. Staff wage hikes, mandated by the National Living Wage rising to £11.44 per hour in April 2025, have added millions to payrolls borough-wide.
Food inflation, lingering from global supply disruptions, has inflated ingredient costs by 15-20%, per British Hospitality Association figures. Rents in prime North London spots like Hampstead and Highgate have surged 12% annually, squeezing profit margins to razor-thin levels.
Utilities, post-energy crisis, remain volatile. One unnamed operator told Harden’s:
“Bills have doubled; we can’t pass it all to customers without losing them.”
Customer behaviour has shifted too. Cost-of-living data from the ONS shows disposable incomes stagnant, with 25% of Londoners cutting back on eating out. High street footfall dipped 8% in Q3 2025, per Springboard data, hitting casual spots hardest.
What Do Diners Say About Price Hikes?
Patrons notice the changes acutely.
“I’ve certainly noticed the rise of the £15 starter and £9 sides creeping in,”
observed one anonymous commentator in initial coverage, reflecting widespread sentiment.
TripAdvisor and Google reviews echo this. Closed venues like Caldesi’s garnered 4.5-star averages pre-shutdown, with fans lamenting: “Best pizza in Belsize – gutted it’s gone.” Gadz’s café similarly boasted praise for its “authentic falafels” amid the sadness.
Yet some diners adapt, trading down to cheaper options or home cooking. This behavioural shift exacerbates the cycle, as mid-tier restaurants lose volume.
Which Other North London Venues Faced Closure?
While Caldesi’s and Gadz’s stories dominate headlines, whispers of others circulate. Harden’s survey implies dozens more, though specifics remain patchy. In Archway, a Greek taverna cited similar woes; in Crouch End, an artisanal bakery folded under rent pressures.
Ham & High’s ongoing coverage flags a pattern: independents succumb first, chains adapt via scale. Peter Harden reiterated:
“Newcomers are emerging of a quality that is probably better than ever,”
pointing to hopeful openings like Huo.
Can North London’s Scene Bounce Back?
Resilience shines through. Harden’s steady entry numbers suggest not all is lost. Emerging spots emphasise value: fixed-price menus, local sourcing, and pop-ups mitigate costs.
Support initiatives, like Camden Council’s rent relief pilots, offer glimmers. Operators pivot to delivery and events, buoyed by apps like Deliveroo, which reported 10% North London growth.
Yet experts caution: without policy relief on wages or energy, 2026 could mirror 2025. Peter Harden’s verdict stands: remarkable resilience persists, but at great cost.
This wave of closures reshapes North London’s culinary map, blending loss with cautious optimism. As Giancarlo Caldesi’s fans mourn pizzas past and Hussein Jabar Gadz’s regulars miss their falafels, the sector endures – tougher, leaner, and ever-adaptable.
