Bewley's  Ltd is to close its cafe on Mary Street in Dublin next month.

The company is to use money raised from the sale of its leasehold interest in the Mary Street outlet to fund the expansion of its cafe network through the opening of new, smaller units.

"Smaller cafes are what people want now," said Mr Donal O'Brien, marketing director of the Campbell Bewley Group. He said five new outlets would be opened this year in Dublin. Staff at Mary Street are to continue their employment with the company. "The company's flagship cafes at Grafton Street and Westmoreland Street, Dublin, will continue to be upgraded," Mr Cronin said. Up to 12 new outlets may be opened over the coming five years.

Campbell Bewley has an annual turnover of more than €317.5 million (£250 million) and employs 4,500 people in Ireland and overseas.