A cafe has announced plans to close amid 'spiraling costs.'

The Little Shed at Dhoon Glen in Maughold, revealed online that it will not be renewing its lease.

The business, which sits beside a stretch of the Manx Electric Railway, was opened in 2020 by the team behind its parent cafe, The Shed in Laxey.

Staff working at the site will join the existing teams working at The Shed and the Gelato Shed, also in Laxey, according to a statement issued by the business on Sunday. The post read: 'After three lovely years at Dhoon Glen, we have made the decision not to renew our lease.

'It’s been a head and heart dilemma for us as we love the place but we haven’t been immune from the spiraling costs our industry has faced.

'It’s been heartbreaking to see how badly this has affected hospitality businesses on the island.'

The 'Little Shed' cafe at Dhoon Glen
The 'Little Shed' cafe at Dhoon Glen (Media Isle of Man)

'Not withstanding DEFA & DOIs efforts, a rent increase along with lease terms which we would find difficult to work with has sealed the decision for us.

'We’ve enjoyed some amazing events, which we hope to continue in some guise or another at The Shed in 2024 and onwards, so keep an eye out.

'Our wonderful little team will now join us at The Shed and The Gelato Shed.

'We’d like to thank them for their incredible hard work and for falling in love with Little Shed as much as we did.

'They’re simply ace!'

Fans online reacted with an outpouring of sadness at the news.

One said: 'So very sorry to hear this.

'We have loved coming to the Little Shed over the last few years and felt so comfortable there.

'Loved the set up and how wonderful you made the space.'

Another said: 'Such a shame , you made the dhoon into a lovely place to stop was loved by everyone.'