The challenges in the Irish hospitality industry remain, but pub business Gibneys – with origins going back 200 years – is bucking the trend and is even growing in the US and the UK.
If there is one thing you could say about the Gibneys hospitality dynasty it is that it is always on the move.
The seventh generation family pub business began 200 years ago in Dublin city-centre before drifting northwards 88 years ago to perhaps its best-known spot in Malahide.
“We’re over 200 years in the business, with a long tradition like other Dublin-based companies such as Guinness and Jameson”
However, in the intervening years the business has expanded into the restaurant trade back in Dublin city centre where it owns popular venue Salamanca as well as establishing outposts in the UK in recent years and more recently in New York.
Gibneys recently completed a finance deal with Bank of Ireland to support the growth of the business. We spoke to the owner of the business Tony Gibney and his son Lorcan about trends in the industry, the business’s recent expansion, plans for new venues and how properly-poured Guinness is still the gift that keeps giving.
Tony explained that the family pub business is as Dublin as it gets. “We’ve been in Parkgate Street, Capel Street, Smithfield, Benbulb Street and Lucan all and in the city centre. We’re over 200 years in the business, with a long tradition like other Dublin-based companies such as Guinness and Jameson.
“The hospitality industry has always been our focus, whether it was hotels, bakery and bars. The family moved out to Howth in the early 1930s with the Royal Hotel. In 1937, they bought in Malahide, which is probably the flagship of what we have now, Gibneys of Malahide.”
According to Lorcan, the business also operates Gibney’s of Gormanstown and is involved in Salamanca on St Andrews Street in Dublin city centre. As well as this it operates Gibney’s off-licence in Malahide, a coffee shop business as well as a whiskey store.
“We are also involved with chef Richard Corrigan and entrepreneur John Nugent with Daffodil Mulligan and Gibney’s London near Old Street in Shoreditch.
“We’ve also opened two new bars in New York in the past year.”
According to Tony the ambition was to grow beyond Dublin. “I would say about four or five years ago we started expanding in London because we decided that we needed to spread our wings to be more than just Dublin City. Looking at the economy, London appealed to us, and we knew about Brexit as well, which could be good or bad. So we decided to move, and then the opportunity for New York came. We’ve been working on that for about three years.”
Industry changes
The business of hospitality in Ireland and globally is undergoing fundamental changes that have only seemed to accelerate since the pandemic.
Tony believes the instinct to remain ambitious is the right step and the key is to keep rolling with the changes.
“There are lots of changes. Drinking habits have changed, people’s going out habits have changed culturally. There’s also the work-from-home trend which can be bad for city centre premises but good for suburban businesses. Some things have changed in a negative way, but also some things have changed positively.
“The growth in the popularity of stout has been significant. Guinness has become very popular not just locally but throughout the world. In London, it’s our biggest-selling beer. And also in New York, it’s our biggest seller.
“Number one, it’s a great product. It’s a distinct product, black and white, visually dramatic. It’s something that people missed going out for during Covid – they literally missed the conversation and enjoyment that’s hard to replicate at home. Guinness has grown, and other stouts have followed suit. Our own Gibney’s Stout is selling well, and Murphy’s is selling well too. The whole category has grown because Guinness has grown.”
Family business legacy
With a 200-year-plus tradition, I ask Tony about what has been the secret to the longevity of the family business.
“The family worked around building taverns, hotels, and pubs all around the city centre – 9th Lock, Dorset Street, Capel Street, Parnell Street, Smithfield – and then out in Lucan, Howth, and Malahide. I think probably having fairly big families generally would have been the main reason that some members of the family moved forward into the hospitality industry. Each generation had people who did different things, but still, members of the Gibney family continued in hospitality to various degrees. It’s been a livelihood for generations of Gibneys going back seven or eight generations.”
The secret to the longevity, he maintains, is looking forward and not resting on the laurels of the past. “I think it argues well for people in this trade to look forward and explore new ideas through partnerships, maybe with hotel groups or others. Sometimes people focus on the negatives or restrictions, but by spreading our wings, we’re opening ourselves to different tax laws, different excise duties, different VAT rates and sales tax, different profitability margins, and different opportunities in general.”
Growth, he says, is never easy. “It’s fraught with challenges getting over all the red tape, but once you take the step, it becomes easier every day.”
He says the business’s relationship with Bank of Ireland has been key to its plans.
“For every business, it is about working capital. If you’re working well, you’ve got a great chance to explore opportunities. Working with the Bank and having their offerings available allows us to go forward, and when you hit obstacles, you’re able to overcome them because you’ve got partners in your business. The Bank is essentially a partner in what we’re trying to do.
“The Bank works with us on a day-to-day basis. We’ve expanded properties in Malahide because New Street has been pedestrianised, giving us an opportunity for outdoor areas. We now have almost 300 outdoor seats on two different floors and on the street itself. That’s been a big change since Covid. It’s about grasping opportunities and working with your partners. The Bank is one of those partners, and you wouldn’t be able to move as quickly if you didn’t have that cooperation.”
Pat Purcell from Bank of Ireland Business Banking Origination Team says the Bank is proud to support Gibney’s in the growth of their business.
“Gibney’s have a 200-year history in the hospitality sector, similar in length to the Banks 242 year history in supporting businesses in the Irish economy,” Purcell said. “Gibney’s Malahide, and their now wide array of hospitality businesses, are synonymous with providing customers with a great social experience. We are delighted to support the growth of such a strong family owned business as it progresses through future generations of the Gibney family.”
Bank of Ireland’s Head of Hospitality Sector, Gerardo Larios Rizo also added: “The Gibney family are an institution in the licensed trade and we are delighted to support their business.”
The next generation
Lorcan Gibney
I asked Tony and Lorcan if there’s another 200 years for the Gibneys’ hospitality dynasty?
“That would be nice,” says Tony. “I’m delighted to see a new young generation coming up. I’m quite old now, but the new generation has five or six members all working independently, capable of managing different aspects of the business.”
Lorcan adds: “We’re always looking at new venues and keeping our eyes open. We just opened two venues in New York in the same year, and they’re finally coming together nicely. Once that all settles, we’re always on the lookout for more, hopefully maybe in other cities or abroad again.”
He adds that having boots on the ground in markets like the UK and the US gives the business insights into new trends and possibilities. “Especially for the younger generation like myself and peers, by opening those places in New York, we’ve gained valuable experience that we weren’t here for originally. We’re learning things that the older generation would have had to learn at the time that we’re only learning now.”
Image at top: Barry, Lorcan and Tony Gibney
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