Teaser of what to expect from Sunderland's new Varo Lounge as it prepares to open in Keel Square
The newest addition to Keel Square opens its doors this month.
National hospitality group, Loungers, has teased what we can expect from Varo Lounge when it brings its casual drinks and dining offering to Sunderland.
The West Country‑based café‑bar group, who also own the Cosy Club brand, will open the latest in its ‘Lounge’ brand in the corner unit beneath Holiday Inn in Keel Square on Wednesday, October 28 2026, creating around 30 new jobs for local people.
Varo Lounge will then be open all day, every day, serving breakfast, brunch, lunch, dinner and drinks, with dedicated kids’, gluten‑free and vegan menus.
While there’s no photos of the completed interiors yet, with the team still busy on site transforming the unit, the group has announced what kind of aesthetic we can expect.
The Loungers design team say the site will feature richly patterned wallpapers, murals, colourful tiling, stripped wooden floors, oversized vintage sofas and upholstered lounge chairs, all brought together with an ‘eclectic mix of artwork.’
They say statement wall and pendant lighting will create a series of cosy corners and elegant dining areas for guests to relax in throughout the day.
For the name, meanwhile, Varo means ‘to launch’ in Italian – a nod to Sunderland’s shipbuilding past.
Shannon Kinghorn, general manager at Varo Lounge, said: “We can’t wait to finally welcome the community into Varo Lounge and to become a place where families, friends and neighbours come together to enjoy great food, great drinks and a brilliant atmosphere - a real hub for the whole community.
“We’re looking forward to supporting local groups, hosting meet‑ups and offering a welcoming space for all.”
On the menu there will be everything from brunch, tapas, toasties and salads to burgers, tacos, noodles and fried chicken.
Varo Lounge will also run a series of weekly offers, including:
- Cheeky Mondays – order any burger, main or salad and receive a complimentary house wine, Cruzcampo, soft drink or pudding.
- Tapas Tuesday – from 5pm: enjoy three tapas dishes plus a glass of house wine, pint of Cruzcampo or soft drink for £14.50.
- Cocktail Club – every day from 5pm until close.
- Lunch deal – Grab a mug of soup and half a cheese toastie for £7.50 – Monday to Friday, 12pm to 5pm
Varo Lounge, which will be the 281st Lounge in the UK, will offer a space for regular meet‑ups, business catch‑ups, book clubs, knitting groups, parent‑and‑baby sessions, creative workshops and more.
It will join The Botanist, Keel Tavern and The Flower Cafe beneath Holiday Inn.
The corner unit has been empty since Holiday Inn opened in 2022 and had been earmarked for The Muddler before Danieli Group, who own the Asian fusion restaurant, scrapped plans.
Now, with Varo Lounge opening this month, it will complete the development, which plays a key role in Keel Square.
Other recent additions to Keel Square include Culture House, including its ground floor Blacks Corner bar and restaurant, offering everything from breakfasts and coffees through to small plates and a cheese belt.