Dublin’s iconic Bewley’s Café on Grafton Street has seen its annual rent reduced by 50% following a ruling by the Circuit Court. Judge Jennifer O’Brien determined that the café’s rent should be set at €738,169.74 per year, a significant decrease from the previous rate of €1.46 million.
In her ruling, Judge O’Brien explained that the new rent accurately reflects what a willing tenant would pay and what a landlord would accept for the renowned premises as of August 2022, over a five-year lease term. This decision follows a prior order made in June, which granted Bewley’s the right to a new tenancy at its famous location.
Judge O’Brien acknowledged the café’s storied history by quoting James Joyce, describing it as a “legendary, lofty, clattery café,” filled with conversation and memories. The court affirmed the valuation method presented by Bewley’s expert as an industry-standard approach in assessing the premises’ worth.
The landlord, RGRE Grafton Ltd., owned by developer Johnny Ronan, had contested the claim, arguing that Bewley’s had not made significant improvements to the property and that these alleged enhancements did not affect its rental value. The court noted that while Bewley’s operates as a restaurant, its valuation is significantly influenced by the vibrant retail environment of Grafton Street.
The assessed rent level was set at €144 per square foot for the ground level, calculated without adjustments for any rental improvements. The court found the gross rent at the time of valuation to be approximately €703,018.80 annually, agreeing to apply a 5% uplift, resulting in the final figure.
Cól Campbell, Managing Director of Bewley’s, expressed relief at the court’s decision, stating it gives the café a “fantastic shot” at revitalization. “I’m so very happy to put all this behind us. We’ve finally got a market rent, which is all we’ve wanted for 17 years,” he told RTÉ News, calling the outcome a significant victory for all of Dublin.
Despite the win, Campbell noted that Bewley’s legal costs have totaled around €400,000, and the court ordered each party to bear its own legal expenses. The terms of the new lease will be finalized in a subsequent court hearing.
Operations manager Felix Campbell, Cól’s son, emphasized that establishing a fair market rent would enable Bewley’s to enhance its offerings, stating that business is returning to pre-pandemic levels. “People obviously want Bewley’s to be there. We’re back at 2019 levels,” he said, highlighting an increase in afternoon tea and evening services.
Cól Campbell also voiced concerns about rising rents affecting many Dublin businesses, advocating for greater transparency in rent assessments. “They should all be public so that people can benchmark and negotiate, with access to all the facts,” he suggested, calling for a systematic approach to rent negotiations.
