A popular restaurant has closed with immediate effect, as its heartbroken owners say rising costs mean "there is no longer a future" for the young business.

The Bao Baron in Folkestone first started serving its unique Pan-Asian dishes during lockdown in the harbour arm.

It later moved to a pop-up in Tontine Street over the winter before opening the restaurant in Guildhall Street in autumn last year.

While the family-run restaurant has proved popular, bosses have announced it has become too difficult to ride out the financial storm.

In a statement on Instagram, chef Greig Hughes and his wife Daisy Wootton said: "We're really sorry to share this news with you all.

"It's been a very testing year but we hope, like us, you'll remember the good times.

"Today we have made the heartbreaking decision to close The Bao Baron with immediate effect."

They said they did "everything" they could to rescue the business, but without success.

"We opened The Bao Baron without investment or significant capital, which left us trying to weather the economic landscape of the past few years with little room for error," the statement says.

The owners say they found success during the first Covid lockdown in 2020 and "grew our business based on this".

"Unfortunately it has gotten harder, rather than easier, to trade as the world has found its new normal," the statement continues.

"With rapidly growing costs in all areas, coupled with folks having less and less to spend as the cost-of-living crisis begins to take full effect, there is no longer a future for our young business.

"We are family run, and we have propped the business up with our last penny hoping to ride out the storm.

"Although we may not have seen financial success, we feel we were successful in many other ways.

"We want to thank our staff who put a huge amount of their energy and passion into their work.

"We want to thank our customers who have supported us and taken time to let us know how much they enjoyed their experience here.

"Thank you to all, have a wonderful Christmas and a happy new year.

"Love Daisy, Greig and Baby Bao."

The announcement was made this afternoon and has already resulted in dozens of comments from customers and other businesses devastated to see The Bao Baron close.

Instagram user folkestonegirl said: "This is so sad - we love your food."

The team at Marleys restaurant in the Old High Street wrote: "Ah guys. This is so sad to read. You’ve created something incredibly awesome, you’ll be so sorely missed.

"We really hope you’ll be back locally in another form. Sending much love to you both and the team."

Another user said: "This is terrible news. I’m so sorry. Your food is amazing and I really hope we see you back again very soon in Folkestone."

While a London food blogger added: "Sooo gutted to read this, you will be sorely missed! Definitely a Folkestone favourite."

KentOnline gave the restaurant a glowing review during a recent visit.

It's food and staff were both given five-star ratings.