24 January 2024 , 15:22
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Revolution Bars has cut its yearly forecast, causing shares to tumble after it revealed a "softly" start to the year.
The firm said that despite having its best Christmas in four years, customers are still feeling the pinch from the cost of living crisis. Chief executive Rob Pitcher stated: "Revolution's younger guests are ... still feeling the disproportionate effect of the cost-of-living crisis."
However, the company also noted that it "cannot assume" that rises in minimum wages will lead to increased spending by its customers. The firm added: "It is however a material increase in cost in each of our businesses."
From April, the minimum wage for 18 to 20 year olds will rise by 14.8%, and for those over 21, it will increase by 9.8%. As a result, the company has had to rethink its expectations for growth in the second half of the financial year.
Shares in the company dropped by 17.7% on Wednesday morning. Mr Pitcher added: "The 2023 festive trading period is our best for four years."
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He also expressed his delight at the strong growth in Peach, Revolucion de Cuba and Founders over the festive period. "It was pleasing to see our Revolution guests experience their first uninterrupted Christmas since 2019, driving growth for the brand."
The business shared that they opened their 22nd Peach pub last November and celebrated weekly sales of over £1 million for the first time during Christmas. Meanwhile, bookings for Christmas parties at Revolucion de Cuba jumped by 26% compared to last year.
However, the company's own Revolution brand didn't do as well because the young people who usually go there are feeling the pinch.
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