Starbucks stuck in some costly Irish leases

Starbucks signed 20 year leases for premises in Ranelagh, Dalkey and Tallaght but it is now having second thoughts about running coffee outlets in these locations.  Oh dear, even Starbucks got sucked into the dizzy Irish property market and is now licking its wounds.

In Dalkey the rent per year is euro 110,000.  That’s euro 300 per day for 365 days, ie a heck of a lot of coffees just to pay the lease.  Ranelagh is euro 131,622 and Tallagh Cross East is euro 155,000 per year.   That’s not including rates which vary between euro 15,300 per year in Dalkey to euro 23,905 in Tallaght.   As they say ‘wrong trousers, grommit’!!  Somebody didn’t run the numbers!

Of course Starbucks hastens to assure us that it is committed to the Irish market.  Good luck Starbucks!  As the marketing experts say, you need a mix of office workers, students and shoppers to make these outlets work and somehow I don’t think they’ll find these en masse in Dalkey whatever about the other locations.

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