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Wake up and smell the coffee in Rathmines
Kieran Flynn



DUBLIN'S ubiquitous coffee shop chain, Insomnia, will this week open another new outlet in the capital. On Wednesday the company opens the doors to its latest premises, this time at 321 Rathmines Road.

The new shop is the 22nd to pany was founded in 1999.

Insomnia also has coffee shops in Cork, Galway and Drogheda. And, according to company chief executive officer Bobby Kerr, further expansion is now very much on the menu.

"Very soon we're opening in Cherrywood. Then we're opening on the Malahide Road. After that we're looking at places like Naas, Newbridge and Bray . . . the outer Dublin ring, you could say. And next year we plan further expansion into the major cities around the country."

Insomnia was set up in 1997 by four entrepreneurs who identified an opportunity to exploit the growing Irish market for gourmet coffee.

The first outlet was opened in August that year and was located in the Hughes & Hughes Bookstore in Galway shopping centre. The shop is owned by one of the founding shareholders, Derek Hughes.

The new Malahide Road shop will be located in the Meadows and Byrne premises beside the Hilton hotel. The company is also a concession partner with the furniture and homeware retailer at its locations in Dun Laoghaire and Cork.

"Being a concession partner means you don't have a lease and you pay a percentage of your sales in lieu of rent, " explains Kerr. "It's less onerous in terms of its longevity, and the fit out costs tend to cheaper as well.

"At Meadows and Byrne we have our own entrance so establishing an identity isn't a problem. Obviously you don't have the same degree of security of tenure, and it's not transferable, so there are downsides. You don't appreciate a leasehold value like you do on the high street."

Since it was founded, Insomnia has assimilated the Perk chain of coffee shops, as well as Bendini & Shaw, whose flagship shop was on Stephen's Green in Dublin.

"We're out there looking around, looking forward all the time. A huge amount of my time is spent on the property end of things. We operate very closely with a property expert who works exclusively for us.

So we don't miss much in terms of what's going on in the market, " he says.

When it comes to coffee, Kerr claims Irish consumers are an increasingly discerning bunch. Since last month all coffees served at Insomnia outlets are 100% Fairtrade certified.

"According to a survey carried out a year or two ago, only 20% of people knew what Fairtrade was. Now that figure is up to 60%. So that awareness is growing all the time."

When it comes to selecting locations for new outlets demographics and footfall are the principal considerations.

"Footfall is the primary driver. You're looking for somewhere you think you're going to get a decent spend or there's a high disposable income.

"Coffee is still a growing market in Ireland. More young people are drinking our product all the time."




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