Bewleys is to enter talks with union representatives about changes planned for its flagship cafés at Grafton and Westmoreland streets in Dublin.
The future of the two restaurants was placed in doubt this week when the company announced it was closing its bakery at Northern Cross in Dublin, which employs 44.
It said there would be a need for "radical changes" if its two "icon cafés" were to remain in business. It is understood neither restaurant is profitable at present.
The Campbell Catering-owned company yesterday declined to say how much time the two restaurants would be given to turn things round.
It plans to refurbish both, but says changes will have to be implemented quickly and deliver speedy results if the restaurants are to survive. The two restaurants combined employ nearly 300.
Despite the planned bakery closure, however, there is no immediate threat to the cafés' popular sticky buns and other confectionary.
A spokeswoman explained that Bewleys would be returning to its former system of having bakers employed on-site at both cafés.
It also plans to re-install the coffee bean roasters which provided the distinctive aroma that used to greet customers as they entered Bewleys restaurants.
The return to the old ways on some fronts will be accompanied by efforts to revamp the restaurants' image and make them more attractive to younger customers.
Initial changes will be made to the Grafton Street outlet, where it is planned to introduce zones within the café to cater for the varied requirements of different customers.
Both of the landmark cafés are listed buildings and any structural changes planned would be likely to encounter planning difficulties.
The company spokeswoman said planning was "a major problem", but people had to realise that the cafés were commercial ventures and changes were necessary to their survival.
Mr Kieron Connolly, secretary of SIPTU's Dublin hotels, restaurants and catering branch, said the company had approached the union and discussions would begin shortly.
It is understood that work practice changes will be required of some staff.
However, there has been no mention of possible job losses at either café.
Bewleys Oriental cafés opened its South Great Georges Street outlet in 1894.
It was followed by the cafe in Westmoreland Street two years later.
The large Grafton Street café, with its much-loved stained glass windows designed by Harry Clarke, was opened by Ernest Bewley at a cost of nearly £60,000 in 1927.