The operator of 90 premium pubs and bars, trading mainly under the Revolution, Revolucion de Cuba and Peach Pub brands, said the drop was recorded during the five-week period ending 31 December 2022 as it announced a trading update for the first half of its financial year (26 weeks ended 31 December 2022).
However, its Christmas period saw lfl sales up by 17.3% v 2021 as strong corporate party bookings rose reflecting a return of corporate guest confidence and pre-booked party revenue in the same period was up 10.3% v 2019, representing an all-time lfl sales record for the group.
The group added its recently acquired Peach Pubs business delivered strong lfls over the festive period with revenues increasing by 7.5% compared to 2021 and 10.1% compared to 2019, which it said was “clearly demonstrating the additional resilience and diversity Peach Pubs has brought to the group since its acquisition in October 2022”.
9.4% lfl drop in H1
Group lfl sales were down by 9.4% during the 26-week period compared to 2019, which it said reflected the impact on its Revolution and Revolucion De Cuba brands of the record temperatures in the summer, strike action on railways and a poor economic outlook on guest confidence.
Meanwhile, in the period since acquisition in October 2022, lfl sales at Peach Pubs compared to 2019 have remained significantly positive at 9.9%.
The group added it has reassessed expectations and will close a number of the Revolution and Revolucion de Cuba sites on Mondays and Tuesdays in January and early February to manage its energy usage “among additional benefits to our teams”.
It expects rental costs to be lower than previously guided going forward and estimates these to be at the bottom end of the range of market expectations of £6.7m to £10.5m. The group’s group net debt as at 31 December was £18.5m.
Optimism short-lived
Revolution Bars Group chief executive 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. We are not immune to this.
“The board has reviewed its 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 while also allowing our teams to recover after the busy Christmas period.
“I am again proud of our team’s resilience during this disrupted Christmas and new year period, and know that they have loved, as have I, seeing our guests enjoying themselves.”