Major bar chain to close on Mondays and Tuesdays due to rocketing energy bills
A MAJOR bar chain will close its venues on Mondays and Tuesdays due to rocketing energy bills.
Revolution has said that it will be shutting venues early to help cut the chain’s energy costs.
It comes as there are growing fears that some hospitality venues won’t survive as they struggle to cope with rising running costs.
And shares in the company tumbled by as much as a quarter on Tuesday.
Industrial action by railway workers is partly to blame for the chain’s falling share price.
Revolution Bars Group, which also owns the Revolucion de Cuba and Peach Pub brands, said earnings for the year are likely to be lower than predicted.
The bar chain has 90 venues across the UK, which typically trade from late morning through into the late evening.
Revolution told us that less than 20 of its venues will close on Mondays and Tuesdays but hasn’t yet confirmed which locations will be affected.
Rob Pitcher, chief executive officer of the group, said: “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 said it saw like-for-like sales rise by 17.3% over the five weeks to December 31, compared with the same period in 2021, as it benefited from “strong” office Christmas party demand.
However, Revolution highlighted that the Christmas trading period saw sales 9% down against pre-pandemic levels from 2019.
It said sales were broadly below pre-Covid levels as a result of the impact of “significant industrial action” by rail workers and the impact of the cost-of-living crisis on consumer confidence.
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.”
The chain, formally known as Vodka Revs, opened its first bar in Manchester in 1996 and now has 50 locations UK-wide.
Revolution had to close six bars back in 2020 as it struggled to keep afloat due to coronavirus restrictions.
The bar chain closed venues in London, Bath, Birmingham, Clapham, Solihull and Sunderland.
Energy bills are capped for businesses, but the support will end on March 31.
The government froze wholesale non-domestic energy costs at £211 per MWh for electricity and £75 per MWh for gas.
But this will change in April when government support for firms will be slashed by billions of pounds to try and slim down the cost of the scheme.
