Revolution Bars Group to close eight sites
The closing bars are Revolution Bars in Beaconsfield, Derby, Reading, St Peters Liverpool and Wilmslow, Revolución de Cubas in Sheffield and Southampton and the Playhouse in Newcastle-Under-Lyme
Revolution Bars Group, trading mainly under the Revolution, Revolución de Cuba and Peach Pubs brands, has announced the closure of eight sites despite a 9% like-for-like sales increase for the four weeks from 4 to 31 December.
Revolución de Cuba and Peach Pubs performed well, and whilst the Revolution brand traded positively on a like-for-like basis over the festive period, its guests continue to be disproportionately impacted by the current macroeconomic conditions.
Group like-for-like sales for H1, including New Year’s Eve, continued to demonstrate an improving trend, but remained negative at -2.8%. The group expects to announce its H1 pre-close trading update on 24 January.
Whilst the group delivered a strong festive trading period, the macroeconomic trading environment continued to be challenging, and the prospect of the statutory 10.8% increase in the national living wage in April 2024 increases the challenge.
As part of the group’s constant process of reviewing the estate, it has been decided that eight of the least profitable bars will be closed to reduce future site losses. The closing bars are Revolution Bars in Beaconsfield, Derby, Reading, St Peters Liverpool and Wilmslow, Revolución de Cubas in Sheffield and Southampton and the Playhouse in Newcastle-Under-Lyme.
Negotiations for five of the eight bars had already begun for them to be transferred to other operators or their leases rescinded.
The group will continue to operate 58 bars and 22 pubs.
As at 4 January 2024, net debt was £18.3m, below that reported in July 2023.
Rob Pitcher, CEO of Revolution Bars Group, said: “We have had the best festive trading period for four years with all of our brands recording positive like-for-like sales and Revolución de Cuba being the standout performer. However, our younger customers are still feeling the disproportionate effect of the cost-of-living crisis and the national living wage will increase materially in April 2024.
“Therefore, we have taken the difficult yet ultimately beneficial step for the Group to close several bars which are unprofitable.”
