INDEPENDENT COFFEE SHOPS in Dublin city could soon be offered more public leases after two local councillors called out the increasing dominance of larger, chain café businesses being awarded rental agreements.
Management at Dublin City Council last night said it would look at the possibility of issuing targeted adverts for café sites it owns so that small and independent business owners have a better opportunity to win rental contracts.
It came after Sinn Féin councillor Anthony Connaghan and independent councillor Vincent Jackson highlighted last night that chain cafés have frequently been awarded contracts for the sites, despite councillors previously voting to support local businesses.
Both councillors also asked if it was at all possible for smaller businesses to compete for leases without having to go through an extensive procurement process. They argued it would make it simpler and easier for independent vendors to compete.
Dublin City Council own and lease a number of coffee cabins and allocated café spaces around the parks and sports grounds in the city.
Businesses must first respond to an expression of interest, or an advert, outlining their desire to lease the site from the council. Respondents that have proven track records at other locations and the relevant staff training and qualifications are often granted leases.
In return for the use of the site, a cheap, at-cost rent is charged by the council which will often cover services such as cleaning the on-site lavatories and general maintenance. Elected councillors get an opportunity to accept, and later extend, the lease of the site.
A vote was held last night to grant a three-year lease to The Tram Café Ltd, a chain of Irish coffee shops with seven existing locations in the Dublin city area, for a café space located in Johnstown Park in Glasnevin, Dublin 9.
Every councillor agreed to grant the contract to the café chain, for which the council will receive at least €24,500 for the lease. An optional two-year extension is included in the contract, costing an additional €18,000, at the discretion of another vote at a later date.
Before the contract was agreed, Sinn Féin’s Finglas councillor Anthony Connaghan and independent councillor for Ballyfermot Vincent Jackson asked if it would be possible for the council to make it easier for independent vendors to get contracts.
“I don’t have an issue with granting the licence here,” Connaghan said, explaining that it has taken “several years” for the council to find a tenant for the site. He said, however, that councillors have previously voted to support local and community businesses.
“From my own experience, the last few tenders for coffee units seem to have gone to bigger, established groups [...] it’s hard for a local business to compete with them,” he added.
Connaghan asked if the council could issue an advertisement that targeted and welcomed bids from smaller, independent coffee shops to host their business at the council-owned sites.
He also asked if it would be possible if the current procurement process – the method in which the rental contract is awarded to businesses – was made simpler for independent operators.
Jackson echoed Connaghan’s question, adding that he has assisted in operating services on council-owned spaces with community groups in the past and found that it is often the case that the local authority receives “a tiny amount of money” for the sites.
He argued that the low-cost associated with renting the site from Dublin City Council should be all the more reason for the executive to award the rental agreements to small, independent cafés.
“I think, going forward, there are opportunities for us to assist young people in developing career prospects across the board – in our communities across the city,” he said.
“Community groups don’t have the capacity that the big players have. And, an awful lot of the time, charging people €4 – €4.50 for a cup of tea or a cup of coffee puts it beyond what we’re trying to do in our parks and our open spaces.”
Responding to both questions, assistant chief executive of Dublin City Council Anthony Flynn claimed that the council has previously issued advertisements that have promoted local businesses to apply for public sites with “limited success”.
“Maybe it’s time that we do it again,” Flynn said. “We’ve no issue, in the context of the development department, considering, where appropriate, an expression of interest and promoting local enterprise.”
He said awarding contracts to independent businesses fits into the management’s existing policies and various local development and enterprise plans. He added that he was of the view that it would also support local training and employment.
“We’ve no issue with going out again and having a look at that, where appropriate,” he said.
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