A MAJOR bar chain has issued an update on its future after revealing plans to close eight sites and slashing opening hours.
Revolution Bars Group has said that it will “significantly reduce expenditure” and put back all refurbishments despite its “best festive period since 2019”.
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The firm’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 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 added to these pressures.
The operator of Revolution, Revolucion de Cuba and Peach Pubs brands has predicted lower earnings into the second half of the financial year, with estimates between £3million and £3.5million.
Rob Pitcher, chief executive of Revolution Bars Group, said: “The 2023 festive trading period is our best for four years.
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“I have been delighted with the strong growth in Peach, Revolución de Cuba and Founders over the festive period.
“Revolution’s younger guests are, however, still feeling the disproportionate effect of the cost-of-living crisis.
“Looking forward, both business rates and national living wage will increase materially in April 2024, and therefore, we have had to take the view that, with inflation remaining high, the recovery for the Revolution business, our largest brand, will take longer than we had previously forecast.”
It comes just weeks after Revolution Bars Group decided to close eight sites across England as it warned that its younger customers are still feeling a “disproportionate” strain from rapid increases in the cost of living.
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The company said that Revolution Bar sites in Derby, Reading, St Peters Liverpool and Wilmslow would close and that it was working to try to redeploy staff from these sites.
It will also close two Revolucion de Cuba sites in Sheffield and Southampton and the Playhouse in Newcastle-Under-Lyme.
After the closures, Revolution will operate 22 pubs and 58 bars.
It came despite the company reporting its best Christmas trading period since 2019, before the Covid-19 pandemic hit, forcing bars nationwide to close.
We’ve asked the chain when the affected sites will close for good.
The chain, formally known as Vodka Revs, opened its first bar in Manchester in 1996 and now has 90 venues UK-wide.
Revolution had to close six bars back in 2020 as it struggled to keep afloat due to coronavirus restrictions.
The bar chain closed venues in London, Bath, Birmingham, Clapham, Solihull and Sunderland.
Due to soaring energy bills, the chain was forced to close its venues 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 pull its last pint on January 7 after the venue was sold to a new owner.
The venue will then reopen under new ownership eight days later.
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News of the closure was met with anger by local residents, with one saying: “What?! Why?” and another adding: “Another bit of history gone.”
It comes as up to 20 Wetherspoon‘s drinks spots could close permanently with the boozers up for sale.
