Bewley’s loss-making bakery will close in the summer, with the loss of 44 jobs. Rising flour costs, falling prices and increased competition are said to have contributed to its difficulties.
Doubt has now been cast over the future of the company’s historic cafés in Grafton and Westmoreland Streets, which have also failed to make a profit in two years, said to be a result of declining footfalls and steep increases in rental levels, rates and insurance.
Bewley’s managing director Jim Corbett said the company wished to retain both sites but this would only be realised by modern-day customer needs and achieving commercial viability.
He said: “Bewley’s cafés are not immune to pressures which have come to bear on city-centre businesses in recent times, and there will be a need for some radical changes, as well as significant capital investment, if our two icon cafés are to remain.”
Bewley’s announcement comes as US coffee giant Starbucks said that it was poised to enter the Irish market. The company is planning to roll out 30 outlets, opening the first in Belfast.
Source: Caterer & Hotelkeeper magazine, 26 February - 3 March 2004