Revolution Bars Group has decided to close eight sites across England as it warned that its younger customers are still feeling a “disproportionate” strain from rapid increases in the cost of living.
The company said that Revolution Bar sites in Beaconsfield, Derby, Reading, St Peters Liverpool and Wilmslow would close, and that it was working to try to redeploy staff from these sites.
It will also close two Revolucion de Cuba sites in Sheffield and Southampton and the Playhouse in Newcastle-Under-Lyme.
After the closure Revolution will operate 22 pubs and 58 bars.
It came despite the company reporting its best Christmas trading period since 2019, before the Covid-19 pandemic hit, forcing bars across the country to close.
Like-for-like sales were up 9.0% in December, Revolution told shareholders on Friday.
Yet it was not enough to prevent a 2.8% drop in like-for-like revenue across the six months to the end of December.
“We have had the best festive trading period for four years with all of our brands recording positive like-for-like sales and Revolucion de Cuba being the standout performer,” said chief executive Rob Pitcher.
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“However, 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.”
He added: “Our teams do a terrific job in making guests welcome and giving them a great experience and again we have demonstrated that when our customer base can afford to do so, they are choosing to celebrate with us, and we have delivered record levels of guest satisfaction.
“This should bode well for the future.”
The company will report a trading update for the first six months of its financial year on January 24.