The popular and historic Bewley’s Cafe on Grafton Street is set to close permanently with 110 job losses, it emerged on Wednesday.
The renowned cafe first opened in 1927 and is Dublin's best known coffee shop, serving more than 600,000 customers every year.
The reasons for the closure of the city landmark were outlined in a note to staff on Wednesday, The Irish Times reports.
The economic impact of the Covid-19 pandemic and the €1.5 million annual rental costs are understood to be two key factors behind the move.
The substantial cost of rent is believed to be the equivalent of 30% of the cafe's sales.
Sinn Féin TD for Dublin Bay South Chris Andrews said that the closure of Bewleys on Grafton Street is a devastating loss at a very challenging time.
He added: "The news this evening that Bewleys of Grafton Street is to close will come as a massive blow to the 110 workers at Bewleys and their families, and my thoughts are with all of those concerned at this very difficult time.
"Bewleys has been an iconic feature on Grafton Street for over one hundred years, and whilst it has had a difficult period in recent years, its loss will be felt by Dubliners and visitors to the city alike.
"The rent paid by Bewley's is believed to be the equivalent of 30% of the cafe's sales.
Deputy Andrews continued: "Unfortunately, I have had similar representations from traders in Dublin City who are struggling to afford sky-high rents at a time when they have no income coming through the doors; which seems to be a major contributory factor in the closure of Bewley's.
"I would urge the government to begin tackling this issue without delay before other firms go to the wall."
