Bewley's Oriental Cafés in Dublin city centre are to close with the loss of 234 jobs, two thirds of them foreign nationals.
The two outlets on Grafton Street and Westmoreland Street are to stop trading before Christmas.
The announcement was made by the Campbell Bewley Group last night.
In a statement, the company said the cafes could no longer be subsidised by its other activities. It is understood the cafés have run up losses of more than €4 million.
The company also blamed the rise in popularity of smaller cafés and increases in rent, rates and insurance as well as the smoking ban for the closures.