Revolution to close bars Mondays and Tuesdays to save energy

Bar group Revolution is to close some of its sites on Mondays and Tuesdays in order to reduce energy usage.

The company, which runs 90 pubs and bars, said "a number" of its Revolution and Revolution de Cuba sites would shut two extra days in January and early February.

The move will also allow staff to recover after the busy Christmas period, Revolution's chief executive Rob Pitcher said

In an update to investors Revolution issued a profit warning and said it expects full-year earnings before interest, tax, depreciation, and amortisation (EBITDA) to be lower than previously forecasted.

EBITDA is estimated to be at the bottom end of the range of market expectations between £6.7m and £10.5m.

Revolution said the return of office Christmas parties saw like-for-like sales for the five weeks to 31 December up 17% on 2021 levels, with pre-bookings rising 10%.

However, ongoing train strikes and the cost of living crisis meant walk-in revenue was lower than in previous years.

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 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 21-strong Peach Pubs business, which Revolution bought for £16.5m in October 2022, performed strongly over the Christmas period with like-for-like sales rising 7.5% compared to 2021 and 10% compared to 2019.

Revolution's group net debt as of 31 December was £18.5m.