'Significant doubt' over Bewley's café future

The directors of Bewley's Cafe on Dublin's Grafton St have warned thtat "significant doubt" exists over the ability of the business to continue trading as a going concern, after turnover slumped by nearly 80%.

The café suffered a "material adverse impact" in 2020 as a result of the COVID-19 pandemic, a problem compounded after it was "unfortunately" unable to secure a rent reduction from its landlord, a company controlled by Johnny Ronan.

Accounts filed by the company that controls the Grafton Street premises show its post-tax losses grew to €1.43 million in 2020, up from €223,000 the previous year, while turnover fell from nearly €5 million to just €990,000.

Bewley’s reduced its headcount by nearly 70% in the period until December 31 last year, with its average employee numbers falling to 40 from 131 in 2019.

The business has suffered a turbulent year as a result of the pandemic, and in May of 2020 announced it would close down due to a combination of factors including high rents and operating costs.

The decision was later reversed.

A note attached to the statement reportedly said the company had been "adversely affected" by COVID-19 restrictions, reportedly adding that the impact of the pandemic was "expected to be felt for the foreseeable future".