The Plymouth cafe beloved by top comic Russell Howard has been saved from closure after the firm running it collapsed into liquidation.
The Early Bird Cafe Ltd has called in liquidators blaming rampant inflation for driving the company under.
After taking advice from insolvency experts, bosses restructured the business, saving more than 35 jobs and keeping the famous cafe, in Mayflower Street, and Mutley Plain bakery open.
A meeting of creditors has taken place but a statement of affairs, listing any debts, has yet to be published.
Owners Rob and Debbie Stander said they had no choice but to restructure because the company had become unsustainable. The cafe and bakery are now run under different companies.
The couple told PlymouthLive: “After several challenging years for the hospitality industry, The EarlyBird Cafe Ltd has made the decision to enter voluntary liquidation and restructure the business.
“Like many independent businesses, we have faced sustained increases in operating costs, from the impact of Covid in our first year, to dramatic rises in energy, ingredients, packaging, and wages over recent years. The combination of these factors made the business unsustainable in its current form.
“Throughout this journey, we have been supported by incredible staff and loyal customers, for which we are deeply grateful.
“Protecting our team has always been a top priority. Following advice from leading insolvency practitioners the restructure has safeguarded more than 35 jobs, with all staff transferring to the new companies.
“The business is now split into two separate companies, allowing the bakery and the restaurant to continue trading under the Early Bird banner.
“This new structure provides a more sustainable foundation, enabling each part of the business to grow independently while strengthening the overall operation.”
The couple added: “This decision marks a new chapter for Early Bird — one that allows us to keep serving our community, continue innovating, and remain a proud part of Plymouth’s independent food scene.
“We are excited for the future and look forward to welcoming our customers to enjoy the bakery and restaurant for many years to come.”
The Early Bird opened in Mutley Plain in 2019 and was such a hit it added a second branch , in Mayflower Street in 2022.
In 2024, the Mutley Plain cafe closed for weeks so major building work could be carried out following that year’s torrential rain.
Last year the Mutley Plain outlet took out its inside cafe seating and became an artisan bakery where products were made.
Top comic Russell Howard with Early Bird’s Beth Stander when he visited the Plymouth cafe
Meanwhile, top TV comic Russell Howard became a huge fan of the Mayflower Street cafe, visiting in 2023 two days running, while he was in Plymouth for shows at the Pavilions, now renamed the Arena.
Howard even brought support act Steve Hall and manager Kumar Kamalagharan along with him – and then visited again just last month, this time with comic Andrew Bird, when he was again starring at the Arena.
Rob and Debbie said: “We don’t talk about this often and maybe don’t stress it enough but we are a family business and always have been since day one.
“Since having to close to Covid after just eight months and adapting and expanding the bakery, our family, our Early Bird adopted family and all our wonderful staff work tirelessly to make Early Bird what it is.
“The passion, creativity and dedication we wish we could bottle because this is the raw essence of the Early Bird. It’s this essence that will move us onward to the next chapter.”
Despite the celebrity endorsement, and regular queues outside the Early Bird, the venture is among many hospitality businesses, in Plymouth and nationally, struggling with the burden of high taxes and skyrocketing costs.
In the past year Britain’s Ocean City has lost the Flower Cafe, on the Barbican; the News Cafe and Hook and Line, at the Royal William Yard; the city centre’s vegan Dimpsy’s Diner; Bella Italia at the Barbican Leisure Park; and several in Plymouth City Market including Hedgerow, Souk, Maurish and Soulfood Vendor.
But it also saw Rockets and Rascals and Terra Nova saved after a company restructure which wiped out debts and allowed a new company to acquire and reopen the Canadian Muffin Co in Armada Way.
Nationally more than 3,300 hospitality businesses went bust in the UK last year with predictions of more this year, as costs of energy, staff and business rates bite.
Rob and Debbie Stander stressed they have been advocates for the #Taxedout campaign, run by UK Hospitality, which called last year’s Labour Government Budget a “hammer blow to hospitality” which cost 89,000 jobs.
They told PlymouthLive: “All people see are the queues and how busy they are and think they must be making a fortune rather than the day-to-day reality of the devastating impact increases in business rates, National Insurance and wages, the cost of ingredients, energy bills, and the unfair burden hospitality businesses have to carry.
“We pay the most tax of any sector in the economy, as much as 75% of pre-tax profit.
“What we and other independents need is for the Government to make a change in taxes for the hospitality industry and bring them in line with the rest of Europe.”
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