THE Campbell Bewley Group has taken the first steps towards a major expansion into Britain and the United States.

Campbell Bewley has already conducted initial market research into how its cafes would be received in both markets, and more detailed studies will be undertaken this year, according to the chairman, Mr Patrick Campbell.

It is hoped to open Bewleys cafes in both markets during 1997. Initial market research had been positive, but further work was needed to see whether the cafe concept needed to be tweaked or not, Mr Campbell said.

Bewleys currently owns one cafe in Edinburgh and has outlets at Luton, Stansted and Southampton airports, but has yet to venture into the mainstream British market.

The company is also working on developing its Irish cafe brand and is currently considering opening up to four new roadside cafes adjacent to existing hotel premises in the Republic.

Campbell Bewley is in advanced negotiations with an unnamed developer to manage and brand a new 110-bedroom hotel at Newland's Cross on the Dublin-Naas Road. The hotel is expected to open in May under the Bewleys name. If successful, Bewleys may develop a new hotel brand which it could market to other developers or hotel owners.

According to its recently issued business review for 1995, the Campbell Bewley group, which also has a contract catering business, had sales of £55 million last year. After-tax profits for last year are expected to exceed £1.5 million, according to Mr Campbell, who predicts turnover for the current period will exceed £60 million.

The strengthening of the group's financial position follows a loss of £820,000 in 1994 when an operating profit of £1.2 million was reversed by a number of exceptional items - including the loss of the Eurotunnel cafe concessions, the subject of ongoing litigation.