Tram Stop café in Croydon closes after 12 years due to rising costs
Owners Jim and Sarah said they could no longer sustain the business amid increasing expenses
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The Tram Stop café, a fixture on Lower Addiscombe Road in Croydon, closed its doors for the final time on Sunday, 2 August 2026. The owners, Jim and Sarah, announced the decision on social media, describing it as one made with great sadness. They said rising costs over the past few years had left them unable to continue trading.
The café had operated opposite Addiscombe Tram stop since 2014, offering breakfast, lunch, coffee and cake to customers seven days a week. In their statement, the owners thanked the community for its support over the years, calling the experience extremely rewarding.
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Rising costs force closure
Jim and Sarah said they had tried to manage increasing expenses but could no longer keep the business running. They urged residents to support their local high streets, warning that every visit made a difference to struggling businesses. MyLondon reported the closure on 4 August 2026.
The announcement prompted an outpouring of disappointment from customers. One wrote on social media, "So sorry to hear this. Thank you for being such a wonderful part of our community for the last 12 years. You will be missed." Another said, "Aww no, such a shame as you were such a valuable asset to the community."
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We have tried to fight the rising costs which we have faced over the last few years, but sadly we are just not able to continue on.
Jim and Sarah, owners of The Tram Stop café
Broader pressures on hospitality
The closure of The Tram Stop follows a wave of shutdowns in London’s hospitality sector. In recent months, several well-known chains and independent businesses have closed, including multiple Beefeater and Patty & Bun sites. MyLondon reported that Sambal Shiok in Holloway and Queer Brewing in Leyton also ceased trading.
In June 2026, Ombra, a long-running Italian restaurant in Bethnal Green, closed after 15 years. The owners cited labour costs, rent increases and VAT rates as reasons, describing the trading environment as crippling. They warned that the hospitality industry faced an uncertain future.
What happens next
It is unclear what will happen to the premises on Lower Addiscombe Road. Jim and Sarah have not announced any plans for the site. Croydon Council has not commented on whether it will take any action to support local businesses in the area.
Questions this report answers
+Why did The Tram Stop café close?
The owners, Jim and Sarah, said rising costs over the past few years made it impossible to continue trading. They announced the closure on 2 August 2026, citing financial pressures as the reason.
+How long had The Tram Stop café been open?
The café opened in 2014 and operated for 12 years before closing on 2 August 2026. It served breakfast, lunch, coffee and cake to the local community seven days a week.
+What have customers said about the closure?
Customers expressed disappointment on social media, calling the café a valued part of the community. Many thanked the owners for their service and said the high street would not be the same without it.
+Are other London cafés and restaurants closing too?
Yes, several London hospitality businesses have closed recently, including Beefeater and Patty & Bun sites, Sambal Shiok in Holloway and Queer Brewing in Leyton. Ombra in Bethnal Green also closed in June 2026.
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