Revolution Bars Group is closing eight of its loss-making bars, blaming a “challenging” trading environment and the increase in the national living wage.
The company plans to shut Revolution Bars in Beaconsfield, Derby, Reading, St Peters Liverpool and Wilmslow, and Revolución de Cubas in Sheffield, Southampton and the Playhouse in Newcastle-Under-Lyme.
The closures will leave its portfolio at 58 bars and 22 pubs.
In a trading update to shareholders, Revolution said negotiations for five of the bars to be transferred to other operators or their leases rescinded are already under way.
Chief executive Rob Pitcher said: “Our younger customers are still feeling the disproportionate effect of the cost-of-living crisis and the national living wage will increase materially in April 2024.
“Therefore, we have taken the difficult yet ultimately beneficial step for the group to close several bars which are unprofitable.”
The company said like-for-like sales for the four weeks to 31 December were up by 9% – its best festive period since 2019.
But it added: “The macroeconomic trading environment continued to be challenging, and the prospect of the statutory 10.8% increase in the national living wage in April 2024 increases the challenge.”
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