An award-winning cafe popular with visitors to a regional reservoir has announced its closure due to spiralling costs.

The owners of the Boat Shack Café say increased supplier fees, and electricity and gas bills have forced them to cease trading immediately.

The scenic café at Derwent Reservoir also operated as a takeaway and was busy with visitors all year round.

But the coronavirus pandemic, cost-of-living crisis, and current economic problems have contributed to a “huge decline” in trade at the County Durham beauty spot. The myriad of increased costs means it is now costing too much money to remain open.  

Opening hours at the site were recently reduced to weekend-only to slow down the financial loss.

Yet the building is set to take on a new purpose after a proposal to extend the facility to host weddings and events was approved by planning officers.

The Northern Echo: The scenic café also operated as a takeaway and was busy with visitors to the County Durham beauty spot The scenic café also operated as a takeaway and was busy with visitors to the County Durham beauty spot (Image: The Northern Echo)

The owners say they now want to create a sustainable business which they can continuously earn a living from. Weddings, baby showers, anniversaries, christenings, and Christmas dinners are just some of the potential events outlined by the applicant.

The café’s success over the past few years paved the way for nine-holiday lodges and two tepees to be built for tourists nearby. A takeaway service will continue to trade from the converted horse box at the site but only in the summer months, the owners said.

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The Northern Echo: Derwent ReservoirDerwent Reservoir (Image: SARAH CALDECOTT)

A post on social media read: “It is with great sadness that we are writing this status, it’s something we never thought we would be writing. As everyone knows every small business has been struggling last year and unfortunately we are no exception.

“With increased suppliers costs, electricity and gas, we are no longer in a position to run the boat shack, as a cafe or takeaway, therefore we have taken the decision to close The Boat Shack.

“We are hoping that during the summer months, we will be able to have some sort of unit, to serve teas and coffees, therefore we are asking that you please keep supporting us as you have done for the past five years.”

But adamant not to give up, the owners are now in process of reinventing their business to survive.