Bar chain Nightcap reports record revenues despite train strikes and inflation

The company, which is led by former Dragons’ Den star Sarah Willingham, saw a 40.9% increase in revenue.

The company is led by former Dragons’ Den star Sarah Willingham (Nightcap/PA)

Cocktail bar chain Nightcap achieved record revenues in the latter half of 2023 despite challenges posed by train strikes and the cost-of-living crisis.

The company, led by former Dragons’ Den star Sarah Willingham, witnessed a 40.9% increase in revenue of £32.7 million during the latter half of 2023 compared to £23.2 million in the first half of the year.

Nightcap, which owns 46 bars across the UK, reported its highest monthly revenue in December 2023 in its nearly three-year history as punters flocked to its bars over the Christmas period.

Ms Willingham explained that the business experienced a surge in bookings towards the end of the month, after it was announced that there would be no train strikes over Christmas.

She said it was “very welcome news” as 2023 was a “volatile year” as the cost-of-living crisis, inflation and rail strikes “severely” impacted her business.

She told the PA news agency: “The train strike in September was horrific, it happened during two payday weekends in September, and the challenge we have had with train strikes up until now is they have deliberately targeted those really painful times to have the maximum amount of impact.

“For hospitality and retail we have not had a normal existence.”

She added she could not be “prouder” of Nightcap as it continues to grow as a premium bar group.

“To achieve half-yearly growth of 40.9% in revenue and 11.9% growth on a like-for-like basis for the important, four-week Christmas period is a monumental effort,” she said.

“2023 has been a volatile year, particularly in terms of the macro-economic impact on the hospitality sector.

“The cost-of-living crisis, inflation and rail strikes have significantly impacted our business and therefore it is very welcome news that the majority of rail workers have reached an agreement to end the rail strikes.

“It is also positive news that inflation is getting under control, which is expected to result in interest rate cuts in 2024.”

The boss said she hopes this will improve its customers’ disposable incomes in 2024.

The company added it expects to benefit from its fresh management team and improved systems in the new year.

Ms Willingham said: “We are a much larger business with the team and foundations in place for the next stage of growth.

“We have set ourselves up to maximise our long-term potential. I am so proud of what we have achieved and am very excited about the future of Nightcap.”

The 50-year-old described the upcoming 10% increase in the national living wage, set to take effect in April 2024, as “double-edged”.

“It’s something we are expecting and we are budgeting for… it’s double edged because it becomes an increased cost to a business, but on the other hand, it also means that our consumers also have more money their pockets to spend,” she said.