The founder of a London-based social enterprise that offers free meals to refugees and the homeless has said he is at risk of closure because the cost-of-living crisis has caused a collapse in sales and donations.
Ruth Rogers, founder of The Canvas in London’s East End, said there had been a dramatic collapse in the trade in her cafeteria in recent weeks, with entries so low that one day she thought their boxes were broken.
“At 3pm last Thursday, I had to ask my manager if the cash system had broken down because sales were £ 57,” Rogers said. “We were open from 10am. Before the pandemic it would have been £ 300 to £ 400 at that time of day.”
Although cafeteria sales were low after the blockade, they had started to grow again in early 2022, Rogers said of the community center near Brick Lane in Tower Hamlets, which has the highest child poverty rate of all. the districts of London.
“Once we outperformed Omicron, sales rose an average of 17.5% month-on-month,” Rogers said. “But in April it fell by 5% in March and in May it seems to be 15% in April. This seems to have a direct impact on the cost of living problems that people face.
“We have a great menu, our space is cozy, our team is working, but if people don’t come in the door because they feel they can’t afford it … how can a small business survive, let alone. One like The Canvas? I know other places like us are already closing. “
“We have four weeks to turn it around”: The Canvas has launched a final crowdfunding campaign with a goal of £ 100,000. Photography: Jo Thorne
The cafeteria trade used to be fast with additional revenue generated from renting its space for events. Customers would “pay for it in advance” by adding the cost of a drink, snack, or hot meal to their order “for someone who may not be able to afford theirs,” allowing the cafeteria to distribute free food and beverages. .
In January, however, the cafeteria donated 1,700 pounds of food, and Rogers realized that, for the first time since it opened in 2014, the pay pot was drying out and would be finished in a few weeks. which forced him to limit the amount of food he distributed.
“It was never a problem before,” he said. “Now we are seeing 30% more needs but suffering 60% less trade and that is why our donations have gone down. If people don’t walk in the door, they’re not knocking on the door. “
The situation coincides with the experience of food banks, which report growing demand but lower donations as the cost of living rises sharply. This combination is creating a “perfect storm” for charities and social enterprises, according to a recent research by the Charities Aid Foundation (CAF).
Nearly three in five charity leaders were concerned that people would have less money to donate, while a third were concerned about the future of their organization, according to a survey of 547 executives in April. Their consumer survey found that 14% of people planned to cut charitable donations in the next six months to help manage their bills.
Street activist Mary Portas, co-chair of the Better Business Act campaign, said it would be “horrible” for The Canvas to close. He added: “It’s a shining example of the best ways for companies to operate to deliver a more sustainable future.”
The Canvas has launched a latest crowdfunding campaign called Save Our Seats (SOS) with a goal of £ 100,000. “We have four weeks to turn it around,” Rogers said. “We have to save time because I don’t know how long it will take. I need to find a new business model for this business environment. “
The crisis has sparked offers of help from his famous fans, including artists Gilbert and George who live nearby. In 2019, they donated designs to create art plates so that it could sell and raise funds and have agreed to sign a limited number that are offered as “rewards” for large donations. In a statement, they said: “Gilbert and George are happy to create their magic plates with images to help The Canvas in their campaign to help feed the homeless.”
Jason Williamson, lead singer of the English electronic punk music duo Sleaford Mods, said the coffee helped people “directly with food and drink, but also with friendship and respect. A place like this can’t be closed when things are going well. about to get worse for everyone. “