Close to 600 hospitality roles have been cut following the closure of 21 bars operated by the Revel Collective, administrators have confirmed. The group, which trades under the Revolution Bars and Revolución de Cuba brands, fell into administration, with the remaining business sold off in a break-up deal.
FTI Consulting, the administrators managing the process, said the closures were unavoidable amid ongoing pressure on trading. Rising costs, including higher employers’ national insurance contributions, increases to the national minimum wage, and growing duties on spirits, had a “detrimental” impact on the company’s financial performance, they added.
The collapse and partial rescue of Revel Collective coincided with the government’s announcement of a support package for pubs, aimed at mitigating the impact of rising business rates. Under the revised measures, pubs and music venues in England will receive a 15 per cent reduction on their business rates from April, with protection from further increases for two years. Restaurants, bars, and hotels were excluded from the relief, drawing criticism from industry leaders.
Kate Nicholls, chair of UKHospitality, said the support “does not go far enough.” She warned that restaurants and hotels continue to face “severe challenges from successive budgets,” and many operators would have to make “increasingly tough decisions on viability, jobs and prices.”
Revel Collective had repeatedly highlighted the impact of rising employment costs following the 2024 Budget. The group reported that increases to employers’ national insurance and the minimum wage would add more than £4 million annually to its costs, undermining efforts to stabilise performance despite cost-cutting and margin improvement measures.
As part of the administration process, FTI Consulting confirmed two deals that preserved a portion of the business and safeguarded 1,582 jobs across 41 sites. Neos Hospitality Group, led by industry veteran Peter Marks, acquired 20 of the venues, protecting around 800 jobs. Peach Pubs was sold to the newly formed Coral Pub Company, led by pub entrepreneur Ted Kennedy.
While these deals have secured a substantial part of the group’s operations and workforce, the loss of nearly 600 roles highlights the continuing strain on the UK hospitality sector. Bars, restaurants, hotels, and pubs are facing rising costs and uneven pressures, leaving many operators with difficult decisions over staffing and sustainability.
The Revel Collective collapse serves as a reminder of the sector’s vulnerability, even as targeted government support provides some relief. Industry leaders have stressed the importance of broader measures to ensure that restaurants and hotels, alongside pubs, can survive rising operational costs and maintain employment.
