When Sarah Chen first set up her dim sum cart at Newcastle's Grainger Market in 2022, few could have predicted she'd become one of the region's most influential food entrepreneurs. Today, her flagship restaurant, Lao Chen, occupies a restored Victorian building on Grey Street, employing 34 staff and serving over 800 customers weekly across lunch and dinner services.
The expansion reflects a broader shift in Newcastle's hospitality sector. The city's restaurant market, valued at approximately £380m annually according to local chamber of commerce data, has seen renewed investment following the pandemic. Yet Chen's rise stands out as a distinctly grassroots success story, built on consistency rather than venture capital.
"What started as a passion project became something I couldn't ignore," Chen explains when discussing her decision to move into permanent premises. Her market reputation—queues regularly stretched to the car park on Saturdays—created organic demand that eventually warranted a larger space. The Lao Chen menu marries traditional family recipes with locally sourced ingredients, a philosophy reflected in partnerships with farms across Northumberland and the Scottish Borders.
The hospitality sector across the North East has shown resilience, with food and beverage revenues up 6.3% year-on-year according to recent hospitality trade analysis. However, staffing challenges persist. Chen's approach—offering apprenticeships through Newcastle College and creating development pathways—positions her as an advocate for sector-wide talent investment.
Her venue occupies prime real estate on one of the city's most historically significant thoroughfares. The £1.2m renovation preserved original cornicing and period features while installing contemporary kitchen facilities. The investment underscores confidence in Newcastle's city centre recovery, particularly among independent operators rather than chain establishments.
Industry observers note Chen's success arrives amid broader momentum. The revitalisation of Collingwood Street, ongoing developments around Newcastle Quayside, and increased footfall in the Grainger Town area have collectively improved conditions for hospitality businesses. Trade body figures suggest city centre venues have seen 12% average increase in customer visits since 2024.
Looking ahead, Chen is cautiously exploring expansion. A second site in Durham has been considered, though she emphasises quality over rapid growth. "Newcastle made me," she says. "That loyalty to the city, to the community that supported the market stall—that has to remain central to whatever comes next."
For a sector historically vulnerable to economic fluctuation, Chen's trajectory offers a blueprint: local knowledge, consistent quality, and genuine community engagement remain formidable competitive advantages.
This article was compiled by AI and screened before publishing. See our editorial standards.
