In a time when Americans are turning to credit cards to afford groceries, and retailers are battling one another to offer lower fuel prices, ordering an iced latte at a coffee shop has become something many people can no longer afford.
Even the ever-popular Starbucks has floundered in the last few years, between rising costs of living and competitors like Dutch Bros. and 7Brew stealing its edge. And while Starbucks is slowly making a recovery under the watchful eye of CEO Brian Niccol, not every chain will be that lucky — even if they’ve successfully served the public for decades.
Merrie England, a West Yorkshire cafe chain founded in 1966 that’s been a staple of many patrons’ lives across the decades, has announced it’s shutting down operations, with all six locations across Huddersfield, Halifax, and Brighouse closing immediately. Employees were notified via text message on the evening of July 27.
After 60 years, this has been an incredibly difficult decision, and our thoughts are especially with the teams across our seven shops who have lost their jobs.”
“It is with great sadness that we announce the closure of Merrie England,” the company wrote in a Facebook post on July 28. “After 60 years, this has been an incredibly difficult decision, and our thoughts are especially with the teams across our seven shops who have lost their jobs. We know people may have strong feelings, but we kindly ask that comments are kept respectful. There are real people, families, staff, customers, and suppliers affected by this news. Thank you to everyone who has supported Merrie England over the years. Your loyalty and kindness have meant so much.”
Merrie England crunched by a struggling economy
The company also issued a statement on its website explaining the reasons behind the decision, citing “a sustained increase in the cost of goods, business rates, energy costs, and the wider rising costs associated with staffing and government policy.”
The statement also mentioned seeing less foot traffic and customer spend in its locations, saying that “many people [are] understandably unable or unwilling to pay the prices that businesses now need to charge in order to survive.”
Related: 52-year-old international restaurant chain closing all locations
Loyal patrons of the chain flooded the comments on Facebook and Instagram with memories of their favorite moments.
“Used to get my lunch from there when I was at New College in the ’90s! A simple ham bap with a toasted fruit teacake! Those were the days… sorry to hear about your closure!” one wrote on Facebook, while another said, “Oh no, this is devastating. The quality and consistency over that time has always been so good. I’ve introduced so many to your wonderful hot roast beef and try whenever I would return home to Hudds to have one and get some to take back.”
However, some comments suggested there was more to the story of the shutdown.
“Devastated,” Instagram user natashasanko wrote. “This was my grandparents’ business, who worked extremely hard to make it what it was. It started out as an ice cream business (my Nan’s dad came over from Italy to set this up), and my talented granddad took it over and set up Merrie England. A local treasure with the world’s best beef sandwiches. It’s disappointing to see it decline in quality over the past two years under new ownership. This is not what my grandparents would have wanted.”
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The commenter is referring to Merrie England’s acquisition, which took place in August 2024. Originally run for five decades by Keith and Anita Hanselman and the Hanselman family, Merrie England had a warm local vibe, and it also offered one of the first drive-thru coffee options in the UK. When the family was ready to retire, they sold it to local businessman Gary Conway for an undisclosed sum.
Conway, who co-founded alcoholic beverage company SkinnyBrands in 2015, said he planned to expand Merrie England’s footprint. Directors Ian and Anne Coumont, of Yorkshire-based restaurant Burgers&More, also invested in the purchase.
Merrie England’s fate is not unique
While Merrie England had great success for decades, the chain met with a fate many family-owned chains do: being taken over by investors who don’t understand the key to the brand’s success.
In the case of Merrie England, it’s clear from the comments about its closure that people made lifelong memories there. Many also praise the quality of the food over the years, which the Hanselman family took great pride in. It even inspired poet laureate Simon Armitage, who penned a poem about the women who worked there.
Private equity firms have a playbook for taking over small businesses, which usually targets aging owners who have poured their blood, sweat, and tears into building it. It goes like this:
The small business buyout plan
- Identify small businesses with loyal following, consistent cash flow, and owners who want to retire
- Send out advisors to praise what they’ve built and offer big money with promises to expand or better the business, while hiding damaging info in the fine print
- Divest the business when they find they lack what made it special
- Go hunt for the next big opportunity
Small business owners on Reddit’s small business sub who have sold to private equity firms cite mixed experiences, with some leaning more negative than positive.
“Revenue was down by 80% in two years post-close, and all my employees quit by the first year,” one wrote, also saying it was “scary how easy” the process of selling was. “3 signatures and I sold my business for 7 figures while I was sitting at home watching TV,” they wrote.
“I know two separate people, one a direct family member and another a very close friend, who sold businesses to large PE groups,” another user wrote. “Both were successful multi-million dollar family businesses who just wanted outside opinions, fresh ideas, and added capital for investment into newer tech/softwares. Both scenarios were EERILY similar. The assimilation processes went very smoothly until a year in, they were let go for not being “culture fit” in their own family businesses and were told to pack their bags in 15 minutes and get out.”
