The focus for Revolution Bars Group will be to integrate Peach Pubs into its business over the next three to six months, following which it will formulate a growth strategy, CEO Rob Pitcher tells MCA.
The Revolution, Revolucion de Cuba, and Peach operator reported total sales of £76m for the 26 weeks ended 31 December 2022 (H1 FY23) yesterday (7 March), with a loss before tax of £0.1m.
“What gives us confidence is the start of recovery of like-for-like sales in the second half of the year,” Pitcher says. “Our net promoter scores are industry-leading and we have seen the cost of living crisis start to abate.
“The worst is behind us from an economic crisis point of view.”
With Peach Pubs delivering strong like-for-like (lfl) sales since the acquisition in October 2022, the “integration plan is well underway.”
“We want to understand the business before we do anything further. This year, the focus is on delivering synergies through purchasing power.
“Beyond that time, we see plentiful supply for premises that would suit Peach.”
Revolution Bars is also implementing a new CRM system this week and pushing affiliate marketing over the next six months.
Pitcher further cited the disproportionate impact of the cost of living crisis on younger demographics – the target consumers for its Revolution brands – while Peach has performed well due to an older age group.
The late-night bar brands will also resume expansion when the “opportunity is right,” according to him.
“When we purchased Peach, it was to give us a third avenue for growth,” he adds. “So it’s very much a case of integration and consolidation, then we see what the trading environment is like in six months’ time.
“We hope it looks different and should that be the case, we would look to start growing again at the earliest opportunity.”
While rail strikes, alongside the pressure on disposable incomes, has impacted sales, Pitcher is confident in the Revolution offer and looks to a “bright future,” with sales for the full year forecast to be in line with expectations.
“There are reasons to be optimistic…we look forward to spring and summer with optimism.”
