NI coffee chain closes with 80 jobs lost

Coffee chain Synge & Byrne has said it has ceased trading in Northern Ireland due to "soaring operating costs".

The business was founded in 2014 by brothers Damien and Adrian Garvey and has cafes in locations including Belfast, Londonderry, Dungannon, and Newry, as well as the Republic of Ireland.

Synge & Byrne Abbey Ltd, which owns the chain, said its Northern Ireland operations had stopped trading, with the loss of up to 80 jobs.

Director Damien Garvey said they were "deeply sorry to have reached this situation".

"Despite our very best efforts to save the business, we have been unable to overcome the mounting difficulties we faced, not least the current market conditions impacting the hospitality sector, including soaring operating costs," he told BBC News NI.

"This situation, combined with a growing debt burden, means we have no other option than to close our doors."

He thanked "the hundreds of talented and hardworking staff" who had been part of the business and all their customers.

Synge & Byrne cafes located in the Republic of Ireland will remain open.

Speaking to BBC Radio Foyle's North West Today on Friday, Colin Neill, from Hospitality Ulster, said many people have been quite shocked by the closure of a very well-known brand.

"It is tragic and it is going to get worse," Neill said.

"We have been warning about this continuously and have given the government extensive evidence that this is coming, because it is financially unsustainable for the position that hospitality has been placed in."

Neill said the contrast between the hospitality industry in the Republic of Ireland and Northern Ireland is stark, noting that Synge & Byrne is keeping its cafes across the border open.

He said the VAT rate on food for hospitality businesses in the Republic of Ireland is set to fall from 13.5% to 9% in July, while Northern Ireland remains at 20%.

He added that more and more Northern Ireland businesses are struggling in the current financial climate and warned that, without further support or change, this would undoubtedly lead to more closures.

"If someone asked me today whether they should open a hospitality business, I couldn't honestly advise them to do it, because they would lose money."