Coughlans Bakery, a third-generation business co-owned by comedian Romesh Ranganathan, has announced it will close its doors after nearly 100 years of operation. The chain, with 31 stores across the UK, is entering voluntary liquidation this week.
Sean Coughlan, co-owner and managing director, stated in a social media video that the decision was made to ensure staff and suppliers are paid. He described the closure as 'devastating' and attributed it to rising taxes and fuel costs. "Rates have absolutely smashed local businesses, local retail," Coughlan said, detailing an extra weekly bill of £20,000 and a doubling of the fuel bill from £3,000 to £6,000 due to the Middle East crisis.
Coughlan cited increased National Insurance payments and wage increases, which came into effect this year following Rachel Reeves's Autumn Budget 2025, as significant pressures. He noted that business had been "swimmingly" in March before these measures took effect.
The recent heatwave was also described as the "nail in the coffin," causing a 50% drop in business as customers opted to stay home. Coughlan expressed that the decision to close "affected us more than we could have ever imagined."
Ranganathan, who purchased a stake in the business in 2024, was called an "honorary Coughlan" by Sean Coughlan. "A massive thank you to our newest family member Romesh, you've been incredible, kind, compassionate and we've had so much fun together," Coughlan added. Ranganathan commented on the post, "You've not let me down mate! Much love." The comedian, who is vegan, had taken an interest in the bakery's plant-based offerings.
Conservative MP Claire Coutinho shared her dismay on social media, calling the closure "Utterly, utterly heartbreaking" and urging the government to "stop choking small businesses into extinction."
The closure of Coughlans Bakery occurs amid broader challenges in the UK's hospitality sector. A survey by UK Hospitality and other industry bodies found that one in six hospitality businesses are at risk of closing in the next year, with almost a quarter currently operating at a loss. Between January and March 2025, 305 establishments closed, averaging three per day.
Kate Nicholls, chair of Hospitality UK, stated that the sector has faced over £5 billion in cost increases across the last two budgets, contributing to a high tax burden. She called for the government to reduce VAT to 10%, aligning the UK with European standards. A Treasury spokesperson countered that the government has an economic plan, including business rate reforms and a £4.3 billion support package to limit bill increases. They also noted that over 40% of employers are expected to pay no employer National Insurance contributions in 2030-31, with generous reliefs remaining in place.