A TOP Gwynedd restaurant has shut its doors due to the “huge increase” in monthly energy bills, with the owners being quoted up to £66,000 extra a year.

John Dolan, owner of The Gatehouse Steakhouse in Dolgellau, made the announcement on the business's Facebook page, saying he and his partner Vita had planned on being at the establishment for another four years.

The restaurant was launched by the pair in April 2016, who transformed the site with their own savings, having initially been told that “the place was doomed”.

However, having recently been quoted more than £7,000 a month for gas and electric, he decided it was "just not realistic" to stay open.

To continue trading, Mr Dolan said they would need to increase revenue by at least £5,500 a month just to “keep the lights on”, but added they did not want to simply “tread water”, so made the difficult decision to close permanently.

In a post on the business’s Facebook page, he said: “We have closed The Gatehouse Steakhouse permanently. We had planned on being here for another four years, doing our thing, having fun, and serving great food!

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“Unfortunately, we were quoted £7,378 per month on gas and electricity, and this was the best quote. This is a huge increase from what we have been paying, and it is just not realistic for a small independent business to thrive with such overheads, and "surviving" is just treading water.

“We have truly maximised the business in every way possible whilst maintaining our values and continuing to improve in all aspects. But, to be tasked with increasing revenue by another 5.5k per month just to keep the lights on, makes this pretty pointless.

Take away the passion and love, friendships, banter, laughs, etc, the goal of this business is to be profitable. To add £66,000 extra to our already high annual bills, leaves me with more questions than answers on how to generate that extra revenue, with extra workload, but no extra profits, whilst dealing with increasing supplier prices.

“The easy answer is to put up prices, but it's not so simple. Footfall must also then increase, but it is highly likely to decrease given the reduced household incomes after bill increases etc.

“If we continued trading, we would be charging over £30 for an 8oz Rump Steak, and £25 for a burger - this is totally unrealistic. And don't forget, this would be just to clear energy pills, no Ferrari or Lamborghini - just to pay for energy!

“Only last week we were still busy, so it is comforting to know that we have chosen to close for the reasons mentioned, than been forced to close due to a failed business. It is what it is unfortunately. 

“So we had to make a sensible decision based on facts and smart thinking. It's very sad, but these decisions can't be made with the heart. If it was decided with the heart, we'd be here for years and years until you are fed up of us.”

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Mr Dolan thanked the restaurant’s staff, saying breaking the news to “such a fantastic bunch of people” was a “gut-wrenching” thing to have to do, adding that the closeness within the group had made it all the more difficult. He also thanked customers for their support in the last six years.

When mentioning the pair’s move to Dolgellau in March 2016, they had done no research on the town, adding that spending their savings on a restaurant was a “ballsy” move.

The post continued: “What we quickly found was an amazing community of kind and lovely people, who opened their arms and let us unknown newcomers in with a warm welcome. From local tradesmen to passers-by, we met so many nice people who were happy to help, share contacts, offer local advice, and just be generally sound people!

“This was and still is very moving to us, and we will always be very grateful to the people of Dolgellau and surrounding areas. I wish nothing but good fortune to you all.

“All good things come to an end and another door opens. Before the next door opens we will be taking a few months off to spend as a family and have some fun with our children, whilst planning the next step in our exciting lives.

“It's been a great journey with so much laughter had and special memories made. We will miss you all, but we certainly won't forget you.”