You may think that there is already too much competition on the high street, but customers in the United Kingdom could be further spoilt for choice as news from the Irish press suggests that the Dublin-based coffee chain could be entering the British market.
The first Insomnia branded store could open its doors as early as next year, according to some sources.
The owner, the businessman Bobby Kerr, told the Independent that they are “looking at a few sites” already.
This move across the Irish Sea is just one part of the company’s expansion plans; it is expected that a further thirteen outlets will open up in Irish locations such as in the cities of Galway, Cork and Dublin with $1.2m (€1m) being set aside for this investment.
No figures have been released regarding the cost of the move to the United Kingdom as of yet.
Insomnia has already been testing the water on British shores, so this move is not exactly a bolt out of the blue. In recent months around ten branded self-service machines have been installed in Spar grocery shops and the initial feedback has been quite positive.
Mr Kerr – who was a former member of RTE’s syndicated version of Dragons’ Den and a one-time Newstalk host – alluded that the expansion will be funded by cash flow and additional borrowings. It is hoped that the business will be debt free within three years.
This is a major move for the Irish chain, but the UK is not the only area in which Insomnia’s management has been scouting. Mr Kerr has also let slip that the chain has looked at the potential of opening coffee shops in the Middle East, specifically Abu Dhabi and Dubai, but no decision has been made as of yet.
He described those plans as “tentative”.
Alongside announcing their plans to move into the British market it was announced that the company’s earnings before tax, depreciation, interest and amortisation is likely to be 20% higher than last year.
It would value Insomnia in the region of $31m (€25m).