Greater Manchester hospitality group announces closures

Tameside-based Revolution Bars Group has become the latest hospitality brand to announce it is closing sites amid rising costs for the sector.

The Greater Manchester headquartered group has announced eight closures across its brands, including at Wilmslow and Liverpool St Peters in the North West, citing the impact of the cost of living crisis on consumer spending in hospitality. The group reported all sites being closed were unprofitable, despite the chain seeing the festive turnover in four years.

Rob Pitcher, CEO of Revolution Bars Group, said:

“We have had the best festive trading period for four years with all of our brands recording positive like for like sales and Revolución de Cuba being the standout performer.

“However, our younger customers are still feeling the disproportionate effect of the cost-of-living crisis and the national living wage will increase materially in April 2024. Therefore, we have taken the difficult yet ultimately beneficial step for the Group to close several bars which are unprofitable.“

The closure of Revolution Bars sites across the country follows a number of other high profile hospitality venues announcing closures in the start of 2024, including TV chef, Simon Rimmer’s Greens in West Didsbury, while last year saw closures for popular Stockport spots, The Glass Spider and Dr Feelgood. In a statement by Simon Rimmer and his business partner on the Greens website, the chef cited that a 35% increase to rent coupled with rising energy, wage and food costs meant keeping the restaurant open was no longer viable.

Commenting on the closures, Greater Manchester Night Time Economy Advisor, Sacha Lord, called for government action to ease the pressure on the sector. He said in a statement to the Manchester Evening News:

“I am saddened to hear of the string of restaurant closures across the UK this week including Simon Rimmer’s restaurant Greens here in Didsbury, Greater Manchester. We are now seeing the unfortunate damage that the turbulent economic year has caused in real terms.

“The closure of Greens is a stark example that even in regions of relatively high disposable income, the financial pressures on small businesses are simply no longer viable especially when household budgets are being squeezed more than ever by food price inflation or rising energy costs.

“With MPs not returning to Westminster until next week, I would urge ministers of both parties to take this time to meet small business owners in their constituencies to truly understand the realities they are facing in this difficult climate.

“On countless occasions we have seen policy u-turns due to the lack of understanding of the most pressing issues, or measures which could significantly boost trade being misunderstood or neglected entirely, such as a reduction in VAT for hospitality to match European counterparts or the specific appointment of a minister for hospitality who can better advise on the complexities of the industry.

“It is only by listening to experts and the business owners on the ground that the right policies can be made which not only stimulate economic growth in the long term but help ensure the viability of the UK’s fifth biggest industry for the years ahead.”