My cafe used to be full, but look at it now

Louis Permayer survived the Hungarian revolution and has been selling cakes to the people of Hampstead ever since.

But where the Communists failed in 1956 it seems the consumers of NW3 might succeed half a century later.

Mr Permayer's Louis Coffee and Tea Room, for generations an institution in Hampstead Village, is facing closure thanks to high rents and over-zealous traffic wardens.

"In the old days I was full up but look at it now," said Mr Permayer, 74, surveying the empty tables.

"The traffic wardens don't let you stop for a minute, that's the main problem. But rent is also very expensive in Hampstead. The council is not with the small businessman at all."

He said business had dropped by 40 per cent in the past four years. And, although he did not consider them rivals, he said the likes of Starbucks had it easy.

He added: "It's a killer - the big fish can cover themselves. But I have also found the younger generation are completely different. The old people in the old days loved a good cake but people today just don't eat a lot of cake."