The boss of the company behind two Aberdeen city centre bars has called on the government to cut VAT on hospitality venues.
Revolution chief executive Rob Pitcher made the plea as his company, which owns Belmont Street mainstays Revolution and Revolucion de Cuba, reported losses of £28.4million over the past year, almost double what the company burned in 2023.
The losses - reported in an update to investors this morning - follow a troubled spell for the business, which has struggled to recover from the pandemic and has been further hit by shifting attitudes towards alcohol among its core 18-30 target market.
The firm completed restructure plan last month which resulted in a £12.5million cash injection to return the business to growth - but Mr Pitcher says the hospitality sector also needs further support from the government to return to prosperity.
"We look to the new government to demonstrate their support for the hospitality industry and to enable us to become an engine for growth for the wider economy," he said.
"This needs to happen via significant business rates reform to support the high street and specifically hospitality, whilst also looking to refresh the apprenticeship levy to allow for more training and development across the industry.
"Longer term we need a competitive rate of VAT for hospitality in comparison to our European neighbours, who benefit from much lower rates, as this will allow us to drive even more economic growth for the country.
"The new government needs to recognise these challenges, which are not unique to our business, and reduce the burden of tax on the hospitality sector.
"For the sector to deliver economic growth and employment, further support should be offered to hospitality through reduced VAT and business rates support measures for companies of all sizes."
In August it was reported the firm gained High Court approval for a restructuring plan which would see the closure of a number of its bars - including ones in Inverness and Edinburgh.
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