Trading ahead of expectations at bars group

The Manchester-based Revolution Bars Group said trading has been ahead of board expectations since it reopened outlets following the easing of lockdown restrictions.

But it revealed that its Liverpool site will not be reopening.

It started reopening sites on July 6, and it had reopened 18 bars by the end of July, and, as of August 25, 39 bars were trading.

Trading in the period since reopening has been ahead of expectations, in part as a result of the Eat Out To Help Out (EOTHO) scheme.

Comparable venue sales in the eight weeks to August 29 were 72.5% of last year.

In the first four weeks of the period, to August 1, comparable venue sales were 60.0% of last year but in the past four weeks, to August 29, during which time the EOTHO scheme has been operating, comparable venue sales were 77.5% of last year.

EOTHO has been a big success in the past four weeks, driving Monday to Wednesday comparable venue sales to 188.4% of last year.

As a result of the positive response to the EOTHO in August, the group announced last week that it would continue to run EOTHO at its own cost at least through September.

A further 10 bars have opened this week and a further 13 are currently planned to reopen on Monday, September 7.

This leaves 11 bars that are unlikely to reopen until social distancing restrictions are further relaxed.

The group has agreed to surrender the lease of Revolution Liverpool – Cavern Quarter, from September 30, and, consequently, this venue will not reopen.

The said it is grateful to the support of landlords at 23 of its venues for granting rent waivers to share the burden of rent through this difficult period in accordance with the UK Government’s Code of Practice.

The board believes that ongoing discussions with landlords at 16 other venues could reach an acceptable outcome before the September quarter date, but is disappointed that almost half of its landlords have refused to enter into meaningful discussions at this time.

Chief executive, Rob Pitcher, said: “Having opened two thirds of our estate I’m pleased that these bars have outperformed our base case scenario assumptions, however, sales in the eight weeks since reopening commenced remain 27.5% below last year, despite the assistance of the Government’s ‘Eat Out To Help Out’ scheme that finished earlier this week.

“We have more openings planned during this week and next, but will have 11 bars that are very unlikely to resume trading until there is a further relaxation of social distancing measures and late-night venues are legally allowed to reopen.

“Overall, the board’s expectations for the year ahead remain unchanged.”

He added: “We would welcome an indication from government as to their inclination to assist in the grave issues that exist with commercial rental arrears and the moratorium that is due to end on 30 September 2020, as well as an indication of further financial support for the late-night venues sector that remains closed by government order.”