Capital Bars, which runs some of Dublin's best-known "superpubs", has warned that it will mount a legal challenge if the Government imposes any further price freezes on the licensed trade. Capital, which is 46 per cent-owned by brothers Liam and Des O'Dwyer, operates 11 bar/restaurants and three hotels in Dublin.
Chief executive Mr Roger Beaumont said that the eight-month price freeze had cost Capital Bars about 6 per cent of its £30 million (€38 million) turnover from its bars, although the group has increased prices by 67 per cent since the price freeze was lifted on January 15th.
Mr Beaumont said the group's wage bill had increased by 30 per cent last year, adding £1.2 million to the total while the group also had to cope with higher rents, increased security costs and higher building costs.
"If the price freeze had gone on, the effect would have been catastrophic and we might have faced a crunch with our banks. We took it on the chin last year and didn't challenge the order. But we will challenge it if it is reimposed, we would have no option," he said.
Capital will shortly complete the acquisition of the Coyote Lounge on D'Olier Street and the Sosume Japanese-style theme bar on George's Street. Last August, the group bought Planet Hollywood on Stephen's Green for £1.35 million and is operating under a licence arrangement.
Capital's £20 million development programme is now complete as are the disposals of the Gaeity Theatre and the various British businesses. In the 18 months to October, Capital - which is UK-registered - had a turnover of £36.8 million sterling and operating profits of £1.5 million sterling. Losses from the discontinued British operations meant, however, that the group had pre-tax losses of £1.8 million sterling against a £793,000 sterling profit in the 12 months to April 1999.
On current trading, Mr Beaumont said that gross sales increased 13 per cent in the fourth quarter of 2000 with strong performances from Fireworks, Trinity Capital and Bob's Bar.
