Rail strikes and warm weather weighed on sales, says bar firm Nightcap
The cocktail bar business reported that like-for-like sales declined by 16.7% over the 13 weeks to October 1.
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Your support makes all the difference.Cocktail bar group Nightcap has revealed that the impact of continued rail strikes and warm weather dragged on sales over the past three months.
Bosses told shareholders they do not believe “Nightcap will be in a position to reach its fullest trading potential until the industrial action has been settled” as it witnessed disruption from fewer commuters and travellers into cities.
The company, which is led by former Dragons’ Den star Sarah Willingham, highlighted the impact but saw total revenues boosted by acquisitions.
Nightcap, which runs 46 bars across the UK including the Cocktail Club chain, reported that like-for-like sales declined by 16.7% over the 13 weeks to October 1, compared with the same period last year.
The hospitality firm said the drop was “mostly caused by additional rail strikes and extremely warm weather throughout September”.
Some bars saw trade knocked by customers spending less time indoors during the warm weather, but it stressed that outdoor venues, such as Bar Elba and Luna Springs, performed well.
Overall revenues were 42.7% higher at £14.7 million for the quarter, boosted by the takeover of the Dirty Martini brand from administration in the summer.
The update comes ahead of a key Christmas period for hospitality operators under pressure from tighter consumer budgets.
Nightcap said it is “cautious” about near-term trading due to the potential further impact from strikes but was positive about current bookings.
Ms Willingham said: “Whilst trading in October 2023 has continued on the same trend as Q1, we are focusing on the important Christmas period.
“Christmas bookings and enquiries across the whole estate including Dirty Martini are in line with the strong 2022 Christmas period.”
On Thursday, Nightcap also reported that revenues grew by 29% to £46.4 million for the year to July 2, after it grew its bar estate from 31 sites to 46.
The group, which also owns Adventure Bar group and Barrio sites, posted a pre-tax loss of £4.9 million for the year.