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Revolution owner predicts £4m damage from ‘regressive’ budget
By Lauren BowesDespite breaking sales records over Christmas, The Revel Collective – which operates the Revolution and Revolución de Cuba brands – expects costs caused by last year’s budget to cause an annual profit impact of £4 million (US$4.94m).

The group revealed it had broken 32 weekly food and drink sales records during the festive season, with like-for-like sales up by 1.6% for the four weeks from 7 December 2024 to 3 January 2025.
Pre-booked revenue also achieved record levels over the festive period, ahead of last year by 5.3%, led by corporate Christmas bookings.
The firm added that it had seen a ‘strong’ performance in the first half of the financial year (H1) in comparison with the previous year. Despite this, its said sales were ‘hampered’ by the uncertainty caused by the delay to the completion of the Revolution Bars restructuring plan.
The restructuring involved the closure of around 18 sites, with a proposal from investment group Nightcap eventually rejected. The group has since appointed Luke Johnson as chair and rebranded as The Revel Collective.
In its trading update, The Revel Collective said “the late-night market continues to be challenging, and sales have not yet recovered as quickly as we had anticipated”.
It added that despite initiatives planned to boost profitable growth in H2, it expects changes in the UK budget – announced in October last year and in place from February this year – to offset its efforts.
The budget included an alcohol duty rise for spirits and an increase in both employees’ National Insurance contributions and the minimum wage, described as a ‘blow’ for hospitality.
Revel’s net debt as of 21 January 2025 is £14.4m (US$17.8m), excluding a payment-in-kind tranche of £2.3m (US$2.84m) and lease debt.
Rob Pitcher, CEO of Revolution Bars Group, said: “The 2024 festive trading period provided us with a fantastic opportunity to showcase what we do best and it was wonderful to see our guests enjoying the parties we hosted. I am particularly pleased with the strong performance in Peach and Founders & Co, which stood out in terms of sales growth.
“However, the younger guests in our bars continue to face challenges with the high cost of living. Additionally, the negative discourse surrounding the restructuring plan created uncertainty among our guests and team members. This uncertainty persisted well into FY25, leading to a weaker recovery than we had originally anticipated.
“We now look forward to a period that will see us implement several new sales initiatives, including launching the new brand proposition for our Revolution brand, just in time for our target guests (18- to 20-year-olds) to receive the 16.3% increase in National Minimum Wage.
“The newly elected Labour government’s recent budget announcements, especially the reduction in the National Insurance thresholds for employers, will have a very damaging impact on the group.
“These measures are regressive and offer no clear pathway for economic growth within the hospitality sector. They also pose risks to the employment market. We strongly urge the government to reconsider this policy in particular and explore more balanced alternatives.
“I’d like to thank our teams for all their dedication and hard work in making the Christmas period such a wonderful experience for our guests.”
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