Bar operator Nightcap has warned of “far softer” trading than expected since Christmas due to challenges including rail strikes and the cost-of-living crisis.
The listed company said that after positive trading during Christmas, it has faced headwinds from various factors: “ongoing rail strikes, the continuation of the cost of living crisis, above inflation increases to business rates and other costs, and the impact of the forthcoming increase to the National Living Wage”.
The company also said it is now facing “greater than expected integration costs” from acquisitions, including today’s announcement of its purchase of live music business Piano Works from administration. That business operates from Nightcap’s Barrio Covent Garden venue and a basement site in a Victorian warehouse in Farringdon.
Chief executive Sarah Willingham said: “2023 has been a tough year for the hospitality industry with numerous head winds which have impacted Nightcap and our entire industry. Whilst we will still see the impact of these challenges continuing in the coming months, the outlook for our next financial year looks very promising. We have assembled an outstanding management team and a solid foundation for the future is now in place.”
Image from Nightcap
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