The Prickly Pear is at the rear of The Esplanade in Ashbrooke, which is being refurbished by gentoo.

Owners Dave and Jayne Kilburn say the work has turned their business into a building site. The problems have been compounded by excavations on the water mains, carried out by Fast Flow for Northumbrian Water.

"We have got diggers around the place, builders' vans parking in the alleyway," said Dave.

"We have also got Fast Flow affecting the business – they have been digging up the pipes. We have been told that the whole of the back lane is going to be dug up. You can imagine us trying to work through that."

The restaurant used to be open every weekday lunchtime except Monday but is now doing lunches only on Sunday. Dave, 50, and Jayne, 38, have been forced to cut evening opening, too.

"We have written to gentoo and asked for a cessation in the rent while the building work is going on," said Dave.

"We are down between two and three thousand pounds a month, which to a small business is a major concern.

"It has got to be the building work – they started work seriously in the January and that has been the problem.

"Gentoo say the whole thing is going to benefit us in the long run and we say yes, but in the meantime we have got eight staff to pay and this is affecting business badly.

"At the moment it is totally in limbo. We have the rent and rates to pay, so we have to stay open, but we are not attracting enough people, so we are compounding the problem."

The property is owned by Ireland-based Sunderland Developments Ltd – but gentoo acts as agent.

"At the end of the day, it is a tricky situation," said Jayne. "Gentoo are the agents for our landlord and they are the ones doing the work."

Andrew Jones, head of property at gentoo, said: "It is unfortunate that the Prickly Pear feels they have experienced a loss of custom because of the redevelopment work currently being undertaken at the Esplanade.

"This development will bring a new lease of life to this area of the city and we are sure that the long-term benefits will be of great value to all surrounding businesses.

"Gentoo manage the Prickly Pear premises on behalf of a third party and are, therefore, not in a position to grant a rent concession. We have kept local businesses informed and seek to minimise disruption at all times."

A Northumbria Water spokeswoman said: "Obviously the work that Northumbrian Water is carrying out is essential.

"We do appreciate that it has caused disruption, but we have regularly been in contact with Mr and Mrs Kilburn and have always done what we can.

"We have given them a temporary water supply, have postponed work at their request and have changed when we have carried out work, for example carrying out work during the evening so it is better for the customer.

"Regarding compensation, we are dealing with a claim from Mr and Mrs Kilburn and will continue to speak to them about this."