From Pizza Express to Channel 4: Who is Luke Johnson, Revolution Bars Group’s new chair?

After a lengthy restructuring process that included £12.5m in emergency funding, Revolution Bars has appointed Luke Johnson as its new chair.

The former Pizza Express and Channel 4 chairman provided £3m of the financing and owns a 20 per cent stake in the company.

He will replace outgoing chair Keith Edelman, whose nine years in the role included two tricky stints during the pandemic and the subsequent cost-of-living crisis.

Johnson is known for investing in a wide variety of hospitality companies through his company, Risk Capital Partners, and for being actively involved in the businesses.

Success with Pizza Express

The seasoned investor began his career by putting £8m into Pizza Express in 1993. Johnson and his business partner Hugh Osmond grew the chain from 12 outlets to more than 200 before the pair floated it on the stock exchange 10 years later. As the chain grew its market value surged to £500m.

Johnson has described Pizza Express as “the one that made all the other things possible”.

Johnson co-founded the investment firm Intrinsic Value in 1999, among other investments. The business invested in Belgo Group, which then owned high-end restaurants The Ivy and Le Caprice. The company later sold them for £90m.

Then in 2001, he set up Risk Capital Partners. This investment company currently owns stakes in the Brighton Pier Group, Feng Sushi restaurants, Gail’s owner Bread Holdings and swimming kit brand Zoggs.

Currently, he serves as chair of Gail’s Bakery and Brighton Pier Group.

However, despite his success, Luke Johnson’s reputation was severely damaged in 2018 when Patisserie Valerie, the bakery chain he chaired, collapsed due to fraud. Johnson lost £10m of his own money when the business went under.

Luke Johnson takes on Revolution Bars

Johnson’s deep industry experience is expected to be key in Revolution Bars’ next phase.

Johnson has tightened costs behind the scenes in previous businesses, which he seems to have already encouraged at Revolution – the group said it would close as many as 25 bar and pub locations as part of its restructuring plan.

He previously told Business Sale that he was “always looking at new possibilities and actively pursue deals to buy established companies and niche businesses that have distinguishing characteristics that in the ideal world would be a market leader.”

“Some businesses you immediately sense are a bad bet, he says, “and others you can feel intuitively are a very inclining opportunity indeed.”

He will be betting on a recovery in the hospitality sector, which seems to have already started.

Despite the market being down by 2.5 per cent year on year, with one in 40 venues shutting in the past 12 months, the the latest Hospitality Market Monitor report signalled a slow yet positive return to “cautious confidence” for the hospitality industry as cost of living pressures begin to ease.

Keith Edelman, the outgoing chairman, said: “I firmly believe his outstanding experience within the hospitality sector will be instrumental in guiding the Group in the future, and I look forward to watching Revolution Bars Group thrive in the years ahead.”