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The Bewleys cafés at Grafton St and Westmoreland St in Dublin are to close at the end of the month, with the probable loss of 234 jobs.
The company said today that they would "make every effort to minimise the personal impact" on staff and added today that efforts will be made to redeploy workers where possible.
It is anticipated however that most of the jobs will be lost. Bewleys is now in consultation with SIPTU about the job cuts.
The company said today that, despite investment of €12m since 1996 in refurbishments at both premises, they had incurred losses of €4m.
"This is to the point where their subsidisation by other, profitable operations can no longer be allowed," Bewleys said in a statement.
The company said changing public preferences played a role in changing the fortunes of the two flagship premises.
"Given the modern consumer’s preference for smaller, more intimate venues, the very large format and major operational costs of these cafés make them difficult to run in modern times."
Increases in costs such as rent, rates and insurance were also blamed, as were increased competition from pubs and other coffee outlets, changes in dietary habits and generally difficult trading conditions in Dublin city centre.
The smoking ban is also being cited by the company as a factor in the decline of business at the Grafton St and Westmoreland St premises.
A proposed major redesign of the premises was investigated, but proved too costly, Bewleys said today.
rarely would you hear clear english being spoken - it was always a european version and gutteral.
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