A COFFEE shop proprietor who has battled his landlord over a rise in his York city centre rent, declared today: "That's the last straw. I'm going."

Bob McGregor, of Coffee Culture, in Goodramgate, who faced a rent increase from £9,500 in November 2004 to £12,000 last November, has reluctantly decided to sell the venture he started only 18 months ago.

His counter offer to the landlord's agents has been rejected outright.

The agent, Waterhouse, offered a compromise rental of between £10,000 and £12,000, but Mr McGregor's offer of £10,250 was rejected, and instead it was suggested that he paid £11,250.

Mr McGregor said: "I've built this up into a good little business, but there is no way I can afford that. I'm 55, and at my age I am not prepared to battle so hard to keep making progress.

"In order to make that offer I have dispensed with the services of one member of staff, as well as a window cleaner and a waste collection service.

"As an independent I have to compete against big coffee lounge multi-nationals, I have to face the effects of City of York Council's ridiculous car parking charge policy and increasing rates, plus electricity bills going up 20 per cent.

"So, this is the last straw. The business is now on the market. The last thing I want is for these negotiations over the rent to drag on, but I may have to resolve it under the terms of my lease with an appeal to a tribunal.

"It breaks my heart. The customers are up in arms. They don't want me to go. I have had some fantastic support. I have built up a very good customer return base, so that I don't have to rely on the tourist trade.

"I feel I have been kicked in the teeth by the landlord, having worked so hard to turn the business around."

But David Waterhouse, of the agents, said: "Never in my 20-year career have I come across somebody who is conducting his rent review through the pages of the Evening Press.

"We were asking for £12,000. We are now down to £11,250. It is heading towards a ten per cent increase over three years.

"His compromise represents two-and-a-half per cent over three years - less than one per cent per year.

"I will be doing 50 to 60 rent review negotiations this year and, on average, rents are increasing by approximately ten to 15 per cent over a three to five-year period."

Updated: 11:52 Tuesday, January 24, 2006