Mermaid Fish and Chips, based on Burlington Arcade, has seen a major rise in their energy bills, forcing them to make changes to their model.
Lisa Wright, shop manager, told the Chronicle: “We sadly had to announce the closure of the restaurant side of the business to focus on the takeaway.
“This was a decision forced upon us through spiralling energy costs as a direct result of lack of government intervention throughout the summer months.”
Hiked prices from wholesale suppliers - which has seen the price of fish rocket - have compounded its woes.
Lisa added: “It becomes impossible to continually pass on the extra costs to customers for the fear of damaging the business further, therefore we have to emphasise that this is the only sensible option available at this point in time, which is to cease the restaurant side.
“In the meantime, we thank each and every one of our customers for their loyal support.”