Daly said last week that he is investing 500,000 in the outlet, which will open in Birmingham. It will trade under the Baxter & Greene name, as the Cafe Sol trademark is already owned there.

Daly said the store, which will cover 5,000sq ft, will be more "touchy-feely" than traditional Cafe Sol outlets, but that he will follow the "same formula" for growth in Britain as he did in Ireland.

Speaking to the Sunday Tribune, Daly added that the group, which operates 10 company-owned stores in Dublin, is also planning to start a franchising plan in Ireland later this year . . . something it has been developing since 2003.

The firm, founded in 1998, recently registered a new company, Cafe Sol Franchising, and Daly said that a former McDonald's executive, David Pfeffer, has now been appointed to head up the franchising business.

The company intends to award only between two and three franchises a year for the foreseeable future, with Daly saying he wants to focus on "quality rather than quantity".

Cafe Sol is aiming to generate turnover of roughly 7m this financial year. To the end of March 2005, Cafe Sol reported a pre-tax profit of 400,000, compared to 235,000 the previous year.

The company is 90% owned by Daly, with the remainder held by his father.

Daly said the company now generates about 20% of its turnover from its delivery service, and hopes to replicate that in the UK.

Competition in the Irish coffee market has significantly intensified in recent years, with a number of operators vying to capitalise on the changing tastes of Irish consumers.

US giant Starbucks opened its first store in Dublin last year, and now has a presence in a number of locations in the capital at shopping centres such as Dundrum, Blanchardstown and Liffey Valley.

Other Cafe Sol competitors include Insomnia and West Coast Coffee.