Ground Espresso Bars has 12 outlets in the North but today it will open its first coffee shop south of the border. The new outlet is located in clothing retailer Next in the West End Retail Park in Blanchardstown and will create 15 new jobs.
The new café is the first part of a targeted growth strategy that will see the company invest about €1.5m in a bid to capitalise on the developing café culture in Ireland.
Dermot McGrath, the company's area manager, says the company plans to add another three new shops to the chain by the end of next year. He says that about four tonnes of coffee were consumed by Irish people last year alone and the shops offer a real meeting point for people, and often serve as an alternative to the pub. A nice coffee is still a luxury most people can afford, he adds. Mr McGrath says the company has done its research and while Blanchardstown was one of the worst hit areas in Dublin by the recession, the expansion at the retail park is progressing well.
Ground Espresso Bars has partnered with Next on the new store in Dublin and it has also has deals with Waterstones and Tesco in Northern Ireland. Mr McGrath says these sort of deals cut down a lot of overheads for the company and also lessens the risks for it.
On the possibility of a reduced rate of corporation tax in the North, Mr McGrath says that while cities in the North like Belfast do not have many multinational corporations based there, if a new tax regime attracts more such companies it can only be good news for the area. This in turn would boost smaller businesses there who have been badly hit by the economic crisis of recent years.
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MORNING BRIEFS - Irish Stock Exchange-listed home builder Abbey saw its pre-tax profit more than double to just under €17m for the six months to the end of October. The builder said it has completed 15 sales over the period in Ireland and that a development at Rathfarnham in South Dublin is now 90% sold. In the statement, Abbey is critical of plans by the UK government to "speculatively develop land for housing". It also points to similar plans by government agencies here, presumably referring to NAMA. The plans, it says, raise "fundamental questions about the future environment for private development in both jurisdictions".
*** The rating agency Standard and Poor's is due to complete its latest review of Ireland's credit rating with an announcement expected later today. S&P upgraded its rating in June becoming the first of the three main agencies (Fitch and Moody's being the other two) to restore an 'A' rating to Ireland's government debt. It is not considered likely the rating will change after this review. The interest rate demanded by investors to lend money to Ireland is already at record lows.
*** Ryanair shares are at a record high valuing the company at €13 billion. The shares rose 8% yesterday after a surge in November passenger numbers and the airline's upwards revision of its profit guidance for the year. The airline credits its revamped website and more customer-friendly approach to business for the upturn in fortunes. Its shares have gained 60% over the past 12 months.
*** The euro rose from a two year-low against the dollar in the immediate aftermath of the European Central Bank's monthly press conference yesterday though it gave up much of the gains overnight. The ECB kept its powder dry despite some expectations it would launch a programme to buy up government bonds pumping more cash into the euro zone economy, a policy known as quantitative easing (QE). ECB president Mario Draghi indicated the bank may pull the trigger on QE early in the New Year and also said there would not need to be unanimous agreement on its governing council to extend its bond-buying operations to include government debt. That is a controversial step because some of its policy makers fear it breaches the ECB's mandate by effectively helping euro zone governments finance their debts - something the bank is not allowed to do.
