Revolution owner turns to pubs and food halls

The Revel Collective, which operates the Revolution and Revolución de Cuba brands, saw sales fall by 22% in the 26 weeks ending 28 December 2024 (H1 FY25).

Total sales for the six months were £64.2 million (US$81.71m), a fall from H1 FY24’s £82.3m (US$104.7m).

The group’s net bank debt fell from £20m (US$25.5m) to £14.7m (US$18.7m).

In its results, the firm noted that its Peach Pubs and Founders & Co venues outperformed both Revolution and Revolución de Cuba, and added “there are opportunities for conversion of existing portfolio properties into Peach Pubs and Founders & Co sites”.

During H1 FY25, the group’s Revolution bar brand underwent a restructure that involved the closure of around 18 sites. In its financial results, the group said the two-month delay on the completion of the restructure led to “prolonged uncertainty for both Revolution and Revolución de Cuba”.

Despite this, its bar brands received “record levels” of pre-booked corporate bookings in the festive trading period, up by 5.3% on the previous year. For the rest of the period, sales in the bar sector experienced “a slower recovery than anticipated due to ongoing consumer and market challenges”.

Revolution rebrand in the works

For Revolution specifically, the group said it is operating trials to enhance profitable growth, with a brand relaunch planned for spring 2025.

Although unaffected by the restructure, Revolución de Cuba was “impacted by the negative commentary” surrounding the plan.

The group’s newest brand, Founders & Co, “enjoyed very strong trading”. The single site in Swansea is home to independent food and drink traders. The group said “there is an excellent opportunity to expand this brand when funding allows”.

The Revel Collective had previously estimated an annual profit impact of up to £4 million (US$4.94m) caused by UK budget measures introduced from February, which will be felt in its H2 FY25 results.

CEO Rob Pitcher said: “The first half of FY25 experienced a number of challenges caused mainly by the impact of consumer confidence on the late-night bars market, and the delay to the restructuring plan timeline, so I was very pleased to see a robust 2024 festive trading period.

“I am particularly pleased with the strong performance in Peach Pubs and Founders & Co and excited to see where these brands can take us in the future.

“With the impending budget measures due in April, in particular the regressive reduction in the National Insurance threshold, we are cognisant of the significant and damaging impact this will have on the group and wider industry and economy.

“The hospitality industry can be a powerhouse for economic growth in the UK when allowed to do what it does best, unimpeded by unrealistic government cost increases. It’s a real disappointment that chancellor [Rachel] Reeves doesn’t seem to understand the impact of her actions.

“Our immediate priority is both the mitigation of this cost impact and continued driving of sales, particularly in the bars brands. We strongly urge the government to reconsider the National Insurance changes and explore more balanced alternatives.

“I give my thanks to all our teams for their continued dedication and hard work as we navigate these challenging times.”