New operator announces plans for empty corner unit in Sunderland's Keel Square

The Muddler announced they had scrapped their plans for the prime unit earlier this year.

It’s been announced who hopes to replace the planned Muddler in the prime corner unit beneath Holiday Inn in Keel Square.

Varo Lounge is heading to Keel Squareplaceholder image
Varo Lounge is heading to Keel Square | Sunderland Echo

National operator Loungers has submitted a licensing application to bring Varo Lounge to the final commercial unit in the development, joining The Botanist, Keel Tavern and Flower Cafe.

Notices displayed in the last remaining ground floor unit confirm plans for a new café bar.

Back in 2023, it was announced that The Muddler, which is owned by Stack owners Danieli Group, would be opening at the unit.

However, earlier this year the hospitality group announced it was scrapping plans to focus on its Stack brand.

All going to plan, the venue will now be operated by Loungers, which has more than 250 locations across the UK and is known for its relaxed, family-friendly café-bar concept serving food and drinks throughout the day.

Loungers has three brands: Lounge, Cosy Club and Brightside, with the Sunderland site being part of the Lounge group as Varo Lounge.

The nearest in the Lounge group, and a flavour of what we could expect in Keel Square, is Cantoro Lounge at The Galleries in Washington.

Another of the Lounge group, with more than 200 sites across the countryplaceholder image
Another of the Lounge group, with more than 200 sites across the country | Loungers

Another addition to the Riverside development is No. 32 Pizza and Cocktails, which opens on Wednesday, July 8 on the ground floor of The Beam, which had been empty since 2019.

It will build on the success of business partners’ Tamer Hassan and Vittorio Farigu's Ember and Vito's Osteria at Sheepfolds Stables and will bring a fresh pizza and cocktail concept to Riverside Sunderland.

It’s hoped both new venues will be a hit with people working in and around Riverside Sunderland and will serve hundreds of new residents expected to live in the area when new properties on the former Vaux site, as well as the Galley’s View scheme on Farringdon Row reach completion.

No 32 Pizza and Cocktails opens at The Beam on July 8placeholder image
No 32 Pizza and Cocktails opens at The Beam on July 8 | Sunderland Echo

Sunderland City Council's business investment and property teams have been working with partners to identify opportunities that complement the city's growing leisure and hospitality sector.

Councillor James Jackson, Portfolio Holder for Business, Housing and Regeneration at Sunderland City Council, said: “Creating a thriving city centre isn't just about building new homes and offices. It's about creating places where people want to spend their leisure time too.

“These two new arrivals are another important step in building a vibrant hospitality offer that gives residents more choice while encouraging more people to spend time in Sunderland city centre.

“We're bringing together a strong mix of respected national brands and ambitious independent operators, creating destinations that complement one another and add to the energy we're seeing across Riverside Sunderland.

“With Keel Square now fully occupied and exciting new businesses opening across the city centre, Sunderland's leisure offer continues to go from strength to strength.”

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