Revel Collective boss: hospitality can be ‘powerhouse’ for economic growth

The chief executive of the Revel Collective has said the hospitality industry can be a “powerhouse for economic growth” if unimpeded by tax increases.

Rob Pitcher said April’s changes to National Insurance and other taxes would have a “significant and damaging” impact on the bar group, which includes the Revolution and Peach Pubs brands.

He previously said the measures would cost the business as much as £4m.

Pitcher said: “With the impending budget measures due in April, in particular the regressive reduction in the National Insurance threshold, we are cognisant of the significant and damaging impact this will have on the group and wider industry and economy.

“The hospitality industry can be a powerhouse for economic growth in the UK when allowed to do what it does best, unimpeded by unrealistic government cost increases. It’s a real disappointment that chancellor Reeves doesn’t seem to understand the impact of her actions.”

Pitcher was speaking as the Revel Collective announced its half-year results for the 26 weeks ended 28 December 2024.

The business, which runs 40 bars and 22 gastropubs, completed a major restructuring plan two months later than planned in September and rebranded from Revolution Bars Group.

Revel Collective said this had dented confidence in its bars and adjusted EBITDA dropped to £6.1m, down from £8.9m the previous year, while total sales fell from £82.3m to £64.2m.

However, pre-tax profits rose from £3.1m to £30.1m partly driven by “record” levels of pre-booked corporate bookings over the festive period.

The group has also introduced “robust efficiency” measures to help cut costs ahead of April.

“Our immediate priority is both the mitigation of this cost impact and continued driving of sales, particularly in the bars brands,” said Pitcher.

“We strongly urge the government to reconsider the National Insurance changes and explore more balanced alternatives.”

Price rises and fewer staff: How hospitality is preparing for the National Insurance rise

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