Revolution announces revenue lift as cost-of-living bites
The business, which operates 67 bars and 22 gastropubs in the Revolution, Revolución de Cuba and Peach Pubs brands, stated its Peach division has delivered a 14.1% lfl sales rise in financial year 2023 (FY23) after its acquisition in October 2022.
The company said: “We have been very pleased with performance since acquisition, especially when the sun is shining, and guests are enjoying the high-quality outdoor spaces.
“We were very excited to open our first new Peach pub since acquisition in October 2023, with further significant opportunities to expand as capital becomes available.”
‘Normal’ Christmas
It added Revolución de Cuba brand has performed well versus other bar brands under current conditions. Corporate bookings “continue to be strong as we look forward to what should be a return to a normal Christmas trading period”.
Revolution has been most impacted by the cost-of-living crisis with guests seeing a direct impact on their disposable income. The business said it continues to implement tactical initiatives and monitors pricing carefully to support the return of its guest base.
New market hall and competitive socialising concepts Founders & Co and Playhouse continue to mature into exciting new brands, the group said. Founders & Co, in particular, has experienced very strong performance as it has become a go-to destination in Swansea. There is excellent opportunity to expand this brand when funding allows.
The group explained its 2024 financial year has started with a continuation of the challenges as cited with year-to-date lfl sales 5.5% behind FY23 though this has improved in the past three weeks to minus 3.5% as a result of the return of students and corporates in bars and continued strong performance in pubs.
Confident in FY24 predictions
The board remains confident in achieving FY24 expectations, which have been prepared on the assumption that the important Christmas trading period is not interrupted by train strikes.
Revolution Bars Group CEO Rob Pitcher 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 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.”
