The Revolution Bars Group has announced that it will be shutting a number of its venues on Mondays and Tuesdays over the next few weeks after seeing their energy costs skyrocket.
The group, who runs the Revolution and Revolucion de Cuba bar chains and acquired the Peach Pub company last year, will be closing some branches for two days per week this month into early February since seeing profits dip. Revolution CEO Rob Pitcher said that rail strikes and the stress of the cost of living crisis on revellers had also impacted sales.
The group runs 90 venues across the UK, including in Newcastle and Durham, and have been trading since 1996 with nearly 3,000 members of staff across the country. They have confirmed that both Newcastle venues, Revolution and Revolucion de Cuba, will be staying open on Mondays and Tuesdays.
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Revolution Bars Group CEO Rob Pitcher said: "The first Christmas since 2019 without the shadow of Covid, saw a new company record for pre booked party revenue allowing us to be optimistic of a strong Christmas period. However, the continued train strikes had a material impact on whether guests attended their office Christmas parties, how long they stayed and whether they met up with friends on a separate occasion.
"Given the current economic environment, the coming months are going to be challenging and uncertain, not only for us, but for many businesses," he added. "The decision to close some bars on a Monday and Tuesday in the early weeks of the year allows us to minimise energy usage in our quietest period whilst also allowing our teams to recover after the busy Christmas period."
The group reported that sales were 9% down over the Christmas trading period compared to pre-pandemic levels of 2019, and shares in the company fell by as much as a quarter on Tuesday. Bosses said that Revolution's earnings for the year is "likely to be lower than previously guided."
Back in 2020, the CEO hit out at the Government for "totally inadequate" financial support offered to the hospitality industry as venues were forced to close their doors amid a second national lockdown. Branding the grants on offer as "derisory and insulting", Mr Pitcher said that they highlighted "a complete lack of understanding of the costs associated with businesses of this nature".
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