The Italian-style café and delicatessen chain Carluccio's is opening its first Irish franchised outlet at the junction of Dawson Street and Duke Street in Dublin 2.

A company headed by Ron Bolger, chairman of the Larry Goodman-owned Irish Food Processors, is believed to have agreed rental terms for the former Graham O'Sullivan retail building where it is planned to open the first branch of Carluccio's.

A rent of €680,000 has apparently been agreed and the building is currently being refurbished.

The business is expected to open by the end of the year.

As well as Bolger, the company holding the franchise is thought to include Peter Murray, a former chairman of Anglo-Irish Bank, and Mike Fitzgerald who was at one stage involved in the running of The Commons restaurant.

Carluccio's will trade out of two floors in Dawson Street, each of them with floor areas of 151sq m (1,625sq ft).

There is similar space on the second and third floors and somewhat less in the basement.

The building is owned by the investment group D2, controlled by David Arnold and Deirdre Foley, who bought it last November for €17 million.

Karl Stewart of DTZ Sherry FitzGerald, who represents Carluccio's, said yesterday he could not confirm that a deal was imminent on the Graham O'Sullivan building, but he indicated that he was looking for between three and five venues for the restaurant chain in Dublin.

The UK company controlling Carluccio's operates 31 cafés throughout Britain.

HT Meagher O'Reilly and Savills HOK are letting agents on the building.