Dunnes Stores has completed the purchase of Café Sol, the coffee shop and restaurant business in Dublin established by Emmet Daly (44) in 1997.
Café Sol operates coffee shops under its Café Sol and Baxter & Greene brands and is involved in the the provision of a food delivery service at business users in the Dublin city centre area.
The company also operates the Neon Restaurant on Camden Street, specialising in Asian street food. The takeover had to be cleared by the Competition and Consumer Protection Commission. In a submission to the Commission, Dunnes and Café Sol stated: “The parties believe that the best prospect for the development of Café Sol brands and network of outlets is as part of a larger commercial organisation with a nationwide presence and the resources to finance their expansion and development.”
Dunnes Stores is involved in the provision of food services through its in-store restaurants and retail sales of prepared food in the Dublin city centre area. However, the Competition Commission ruled that the extent of the overlap is minimal.
Café Sol was known to Dunnes as it supplies Dunnes Stores with a small amount of food and coffee products sold on a retail basis to Dunnes employees from a kiosk located in the lobby of Dunnes Stores’ corporate headquarters.
Café Sol Holdings Ltd, the company that Dunnes has bought, had four subsidiaries. Café Sol Ltd operates coffee and sandwich shops and booked a loss of €709,000 in the year to end March 2015. Retella Ltd operates Neon Restaurant and made a profit of €259,000 in 2014/15.
Eccles Street Food Company Ltd also operates coffee and sandwich shops and booked a profit of €309,000 in the same financial period. Earslfort Terrace Food Company Ltd, which operates a coffee and pastry shop, booked a profit of €126,000 in the year to end March 2015, according to filed accounts.
The Café Sol business was owned by Emmet Daly (90%) and his wife Jennifer (10%).
Article by Bizplus