Inventive Leisure, the Revolution bar operator, will look to acquire existing premium bar businesses as part of its expansion programme, chief executive Mark McQuater has told M&C Report.
He also said the majority of new site acquisitions would be converted to Revolucion de Cuba, Inventive’s offshoot rum bar brand. McQuater said it’s “perfectly possible” for Inventive to grow from 70 to 100 sites.
He told M&C Report: “We would like to do four new bars a year.
“I think [Revolucion de Cuba] would be the majority. Revolucion de Cuba is doing incredibly well in the female market. It hits the professional young female bar goer very, very well. They can combine their drinks, food and dancing in one location.”
Sites in “prominent, affluent county towns” would be targeted, although McQuater stressed that Inventive works well in cities too.
Regarding growth potential, he said: “We are in 70 branches at the moment, turning over £111m. It could easily get to 100 branches turning over something close to £200m. That’s perfectly possible.”
He said Inventive, which is backed by Alchemy Partners, would look at acquisitions early next year after the company has finished its current c£7m revamp programme that will see 28 sites receive investments. “The next step undoubtedly will be to roll out some of the existing brands - Cuba and Revolution, depending on the sites that come up - and then the acquisition piece could follow that.
“I think this business is capable of being a premium branded UK bar operator, and therefore at the appropriate moment we’d be looking at acquiring other businesses that are quality brands and developing those.”
McQuater stressed that he currently has no operator in mind for a potential acquisition.
He said that while some joint Revolution and Revolucion de Cuba have do work well, the general plan is to focus on single-brand sites. A few sites will be converted to Revolucion de Cubas, including Richmond and Harrogate, he added.
Meanwhile, McQuater revealed that sales have at those sites that have had investments under the current programme have increased by 20%, while profits have lifted 30%.
