Revolution CEO: Budget will cost us an additional £4m

The chief executive of the Revel Collective has warned the reduction in the National Insurance thresholds for employers will have a “very damaging impact”.

 

Rob Pitcher estimated measures announced in the autumn budget would cost the business, formerly named Revolution Bars Group, as much as £4m.

 

He described the measures as “regressive” and offering “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,” he added.

 

Earlier this week, UKHospitality calculated nearly 800,000 hospitality staff will be dragged into the new NICs threshold come April.

 

Pitcher’s comments came after the Revel Collective reported record festive trading, with pre-booked revenue at its Revolution and Revolucion De Cuba brands 5.3% ahead of last year, thanks to an uptick in corporate Christmas reservations.

 

Group like-for-like sales for the four weeks from 7 December 2024 to 3 January 2025 were also up 1.6%, with its Peach Pubs brand performing strongest overall.

 

However, the operator of 60 pubs and bars conceded sales in the early part of the financial year were “hampered” by the uncertainty around its restructuring plan, which was approved by the High Court in August last year.

 

The late-night market has also proved to be “challenging” for the group, with sales recovering more slowly than expected.

 

Although the Revel Collective had been in the process of slimming down its estate with a view to restructuring its debt and boosting growth, the group said the cost demands of the budget will likely “fully offset these efforts in FY25”.

 

The pub group said it will keep discretionary spend and capital investment “under significant restriction for the rest of this financial year”.

 

Pitcher added: “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 which 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 to receive the 16.3% (18-20 year olds) increase in National Minimum Wage.”

 

Revolution Bars Group put itself on the market in early 2024 but ultimately turned down an offer from rival bar operator Nightcap.

 

It instead chose to pursue its restructuring plan, which was supported by £12.5m in emergency funding with Luke Johnson named non-executive chairman of the group.

 

In October 2024, it changed its name to the Revel Collective to reposition the business.