Revolution Bars Group to close eight sites

Revolution Bars Group plc has announced it will close eight of its least profitable sites, despite the festive season bringing positive trading for the business.

The operator, which trades under the Revolution, Revolución de Cuba and Peach Pubs brands, saw a 9% increase in group like-for-like sales for the four weeks from 4 to 31 December, delivering its best festive period since 2019. 

While Revolución de Cuba and Peach Pubs performed well during the period, the business says guests of its Revolution brand continue to be disproportionately impacted by the current macro-economic conditions, which has contributed to the decision of eight sites being closed. 

"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," says Rob Pitcher, CEO of Revolution Bars Group. "Therefore, we have taken the difficult yet ultimately beneficial step for the group to close several bars which are unprofitable."

Group like-for-like sales for H1, including New Year’s Eve, continued to demonstrate an improving trend for Revolution, but remained negative at -2.8%. 

The eight closed 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for five of the eight bars have already begun for them to be transferred to other operators or their leases rescinded.

The group says it is currently working through redeployment plans to enable those team members affected to be offered alternative employment elsewhere in the business.

Revolution now operates 58 bars and 22 pubs.

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