Revolution Bars sales beat expectations on Eat Out to Help Out boost
Revolution Bars today reported trading ahead of expectations since venues reopened in July as the government’s Eat Out to Help Out scheme boosted sales.
The bar chain said sales in the eight weeks since reopening were 27.5 per cent lower than the same period last year.
However, this was ahead of previous forecasts — based on reopenings in August — that predicted a 45 per cent drop in sales with only marginal improvement in September and October.
Revolution said the better-than-expected performance was largely driven by the Eat Out to Help Out scheme, which saw Monday to Wednesday sales surge 188 per cent year-on-year in the last four weeks.
As a result, the company will continue to run the discount scheme at its own expense at least throughout September.
Shares in the city centre bar chain rose more than eight per cent in morning trading.
The bar operator said it has now reopened the majority of its venues, with a further 13 set to reopen next week.
But the firm warned that 11 sites were unlikely to reopen until social distancing measures were further relaxed, adding that its Liverpool Cavern Quarter branch will remain closed permanently.
Revolution said it had secured rent waivers for almost two dozen venues, but said it was disappointed that almost half of its landlords had “refused to enter into meaningful discussions”.
The company, which in June relisted on Aim and tapped investors for an additional £15m, said its forecasts for the year remained unchanged.
Chief executive Rob Pitcher said: “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.”