UK specialist coffee retailer Caffe Nero is planning to invest €20 million in Ireland over the next five years to open 40 stores and create up to 350 new jobs.

Founder and majority shareholder Gerry Ford said that this was a show of "faith" in the Irish economic story and a strong signal of its long-term intentions for this market.

'International expansion'
"We've been looking at Ireland for several years but we're only really now beginning to feel comfortable with our international expansion," he said. "We'll open about eight to 10 stores a year in Ireland."

The company will open a cafe in Boston next month, its first venture into the United States. This will bring to seven the number of countries where it has operations.

He said Caffe Nero would offer a European-style coffee house experience in Ireland, serving top quality coffee, “fresh, deli-style food” and a relaxed atmosphere that would prove attractive to families, professionals and retired people.

“We won’t have a high price point. We’ll have free newspapers, free water, free wifi and music in store,” he added.

The company is scouting locations in suburban Dublin and Mr Ford said it would, over time, consider opening in airports and other main transport hubs, and at partnering with certain retailers. It also plans to open cafes outside the capital.

Caffe Nero’s first Irish outlet opened on Merrion Row in Dublin on March 13th. A second will open this summer, also in Dublin.

Mr Ford expects the cafes to trade profitably within three to six months of opening but it is likely to take about three years for the group’s overall operation here to enter the black when the capital expenditure on the outlets is taken into account.

Mr Ford said it would also seek to sell its own coffee beans for home consumption through supermarkets and other outlets here within 18 months.

Caffe Nero was founded by Mr Ford in 1997. It is the largest independent coffee retailer in Europe, with more than 650 stores, 5,000 staff and annual revenues of about £230 million.