The demise of Bewley's cafes

Madam, - When Patrick Campbell spoke last week of the closure of our Grafton Street and Westmoreland Street cafés being like …

Madam, - When Patrick Campbell spoke last week of the closure of our Grafton Street and Westmoreland Street cafés being like a "death in the family", nobody could question the depth of his sincerity.

In 1986, Bewley's cafés and the wider company could have disappeared if it was not for the far-sighted intervention of the Campbells, who took a serious risk in rescuing the business.

It is also worth noting that much of the media and public commentary around the 1986 crisis, while full of nostalgia, was critical of the then Bewley's cafés, stipulating the need for "change" in the management, format and food offering of these cafés.

It was the personal and business goodwill of the Campbells which led to the survival of the cafés for a further 18 years and, just as importantly, to the development of a modern and successful Bewley's tea and coffee business at home and abroad. In my view, this is expertise at work, and certainly not "exploitation" of the Bewley's brand, as some have erroneously suggested.

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In purchasing the cafés in 1986, the new owners also cleared the business of all of its extensive liabilities. The Campbells saved the generous staff pension fund and in subsequent years topped it up to the tune of over €1 million so that pensioners could have increases. They paid the creditors and gave the staff their first pay rise in several years, bringing the business on to a financially sound footing. This included the clearance of all tax arrears outstanding at the time. In the late 1990s they also gave staff shares and recently they purchased these back at a considerable premium. To my mind, these actions show a conscientious and socially responsible approach.

At major expense the Harry Clarke windows have been preserved, renovated and protected over the years. They remain in pristine condition and are intended to remain a part of Dublin public life into the future. The open fires, the mahoganies, woodwork and furnishings throughout the building have all been maintained over the years. Bewley's has further enhanced its traditional role as a major promoter of national charitable, artistic and social causes, including support for the Irish Hospice Foundation and Ireland's Biggest Coffee Morning, now in its 11th year, and the Bewley's Café Theatre in Grafton Street.

Bewley's has openly admitted that not everything has been done correctly in respect of the operational management of the cafés and the décor and the company acknowledges that the cafés were in major need of a refit to meet contemporary needs and standards. But then, on occasion, it has received severe criticism when the wallpaper has been changed.

The major operational costs of these large premises, on the fifth most expensive street in the world, make them impossible to run profitably in today's economic climate. This is particularly apparent when you compare the scale of losses involved against the fact that the cafés contribute only 5 per cent to overall group turnover.

Since 1986, more money has gone into the Bewley's café division than it has been capable of generating. This was made possible only by the successful development and growth of other business activities.

Bewley's was originally established as a coffee and tea importation, wholesale and retail business in the early 1800s, gradually evolving into café operations. To an extent, the new development involves the company going back to the roots of its success. The company has grown significantly and thankfully it will continue to pursue growth through its strengths in the provision of speciality beverages to the food service, hospitality and retail markets.

As one chapter closes on the Bewley's story, others will open. I am confident that the Bewley's name, tradition and ethos will be preserved and that it will remain synonymous with the company as it continues into the future. The current stewards of the business are committed to the Bewley's legacy. It is that, and the support of our wonderfully loyal customers over many years, which will ensure that Bewley's continues into the future. - Yours, etc.,

PATRICK BEWLEY,

Cunningham Drive,

Dalkey,

Co Dublin.