Major issues with the bar chain are being updated after closing 8 locations and shortening hours
A major bar chain has provided an update on its future after revealing plans to close eight locations and reduce opening hours.
Revolution Bars Group has said it will “significantly reduce expenditure” and postpone all renovations, despite having the “best festive period since 2019”.
The company's boss, Rob Pitcher, warned in the latest trading update that the night-time economy remains at risk due to the cost of living crisis and the lack of disposable income among young people.
Mr Pitcher also warned that the rise in the national living wage and the doubling of business rates have increased these pressures.
The operator of the Revolution, Revolucion de Cuba and Peach Pubs brands has forecast lower profits in the second half of the financial year, with estimates ranging from £3m to £3.5m.
Rob Pitcher, CEO of Revolution Bars Group, said: “The 2023 festive trading period is our best for four years.
“I am pleased with the strong growth of Peach, Revolución de Cuba and Founders during the holiday season.
'However, Revolution's younger guests are still feeling the disproportionate effect of the crisis on the cost of living.
“Looking ahead, both corporate rates and the national living wage will increase significantly in April 2024, and we have therefore had to take the position that, with inflation remaining high, the recovery of the Revolution sector, our largest brand, will take longer than expected . we had predicted it before.”
It comes just weeks after Revolution Bars Group decided to close eight sites in England as it warned its younger customers are still feeling “disproportionate” pressure from the rapid rise in the cost of living.
The company said that Revolution Bar locations in Derby, Reading, St Peters Liverpool and Wilmslow would close and that it was in the process of trying to redeploy staff from these locations.
It will also close two Revolucion de Cuba venues in Sheffield and Southampton and the Playhouse in Newcastle-Under-Lyme.
Following the closures, Revolution will operate 22 pubs and 58 bars.
That happened despite the company reporting its best Christmas period since 2019, before the Covid-19 pandemic hit, forcing bars to close across the country.
We asked the chain when the affected locations will close for good.
The chain, formally known as Vodka Revs, opened its first bar in Manchester in 1996 and now has 90 locations across the UK.
Revolution had to close six bars in 2020 as it struggled to stay afloat due to coronavirus restrictions.
The bar chain closed locations in London, Bath, Birmingham, Clapham, Solihull and Sunderland.
Due to rising energy bills, the chain was forced to close its branches on Mondays and Tuesdays in January 2023.
In other news, pub chain Wetherspoons is closing one of its branches this month.
The Percy Shaw in Halifax will pour its last pint on January 7 after the location was sold to a new owner.
The location will reopen eight days later under new ownership.
News of the closure was met with anger by local residents, with one saying: “What?! Why?” and another addition: “Another piece of history gone.”
The bottom line is that up to 20 Wetherspoon off-licences could close permanently while the drinks are on sale.