Revolution Bars Group says late-night hospitality in ‘very challenging times'
Revolution Bars Group has said late-night hospitality continues to face "very challenging times" as it credited its acquisition of Peach Pubs in 2022 with bringing "much needed diversification of sales and guests".
The group which encompasses the Revolution, Revolución de Cuba and Peach Pubs brands has 67 bars and 22 pubs. Results for the 52 weeks to 1 July 2023 showed an uptick in total sales to £152.6m, from £140.8m the previous year.
However adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was at £17m down from £19.4m the previous year and the company recorded a £15.2m operating loss, compared to an operating profit of £7.4m in FY2022.
Rob Pitcher, CEO, said: "Peach Pubs has seen continued strong trading since acquisition, especially during periods of good weather. We are very excited to open our first new Peach Pub since the acquisition and see this brand as having significant expansion opportunities across the United Kingdom when we have the necessary available funds.
"The group now offers a well-rounded, diversified offering through our bars and pubs to navigate the ongoing challenges our guests face with the cost-of-living crisis. The macroeconomic challenges facing the industry impact on both our guests' available spending as well as profitability of the business. This is a key area of focus for our management teams, and we are pleased to see the impact of our sales-driving initiatives coming to fruition, alongside active cost management.
"With pre-booked revenues at record-highs for the upcoming festive period, we look forward to our bars and pubs hosting our fabulous corporate guests, as well as anticipating improved walk-in custom following the challenges of industrial action on the railways in recent years."
Peach Pubs saw like-for-like sales increase by 14.1%, when compared to 2019, but the group as a whole saw like-for-like sales fall by 8.7% compared to the previous year.
The group said its Revolution bars had been most impacted by the cost-of-living crisis with the target market of young people and young professionals having seen a direct impact on their disposable income.
In light of the pressures faced in the industry the company stressed the importance of unobstructed Christmas trading and added: "We join UK Hospitality in calling for the crucial festive season to be protected and for an urgent resolution to the ongoing rail dispute. Not only do the strikes have a significant impact on sales and profitability, but most importantly they affect our colleagues' earning potential through lost shifts and tips which the teams rely on to see them through the quieter trading months of January and February."
