A popular chain of bars has confirmed they will be closing their venues for two days a week for the next few weeks. It comes as the hospitality industry has been hit hard by rocketing energy costs amid the cost of living crisis.
Bar group Revolution has said it is shutting venues on Mondays and Tuesdays throughout January and early February, blaming a raft of factors from train strikes and a generally quiet post-Christmas period.
The chain also owns the Revolucion de Cuba and Peach Pub brands, totalling four venues in Manchester city centre.
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Rob Pitcher, chief executive officer of the group, said: “The board have reviewed their expectations for the full year, taken a number of actions to mitigate the external factors where possible, and will continue to track these closely.
“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 news comes after shares in the company tumbled by as much as a quarter on Tuesday, with the hospitality firm also recording a hit to trade from industrial action. The group said earnings for the year is “likely to be lower than previously guided”.
It said that earnings before interest, tax, depreciation and amortisation is due to be at the bottom end of market expectations, which had ranged between £6.7 million and £10.5 million.
In addition, Revolution Bar Group said it saw like-for-like sales rise by 17.3 per cent over the five weeks to December 31, compared with the same period in 2021, as it benefited from “strong” office Christmas party demand.
However, they highlighted that the Christmas trading period saw sales 9 per cent down against pre-pandemic levels from 2019.
Mr Pitcher added: “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.”
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