Cadbury to launch chain of cafes in UK

Cadbury is set to launch a chain of high street cafes serving afternoon tea and chocolates after new owner Kraft gave the plans the green light, it was revealed today.

Up to 60 sites are being considered starting in London, but Birmingham and Cadbury's historic home at Bournville site of the Cadbury World attraction are also likely to be at the top of the list. It is understood a deal to open Cadbury-branded outlets was signed in January just before Kraft secured its £11.5 billion hostile takeover of the company.

But the new US owner is thought to have thrown its weight behind the idea, at a time when coffee shops like Starbucks and Costa have proved resilient to recession.

The cafes are reportedly set to be called Cadbury Cocoa Houses, offering afternoon tea and a dedicated chocolatier service that will make large versions of Cadbury chocolate bars on site.

The move would provide some much needed good news for Kraft.

It has come under fire from MPs for going back on its promise to keep a factory in Bristol open, sparking job fears among its 2,500 West Midland employees, most working at the Dairy Milk factory at Bournville.

Cadbury headquarters staff are set for the axe, while around 3,500 workers will have their pay frozen for three years unless they agree to opt out of the Cadbury final salary scheme.

Kraft has had to abandon plans to close the scheme after discovering a clause in the Cadbury pension trust deed blocked such a move.

Today it is reported Kraft has endorsed a 20-year licence to a group of retail entrepreneurs to lead the cafe venture, including David Morris, former director of Food & Restaurants at Harrods. Up to 60 sites could be opened over the next three to five years.

Cadbury was not immediately available for comment.