Cadbury is to launch a chain of high street cafés serving afternoon tea and chocolates after new owner Kraft gave the plans the green light.

It is understood a deal to open Cadbury-branded outlets was signed in January just before Kraft secured its £11.5-billion hostile takeover.

But the US company is thought to have thrown its weight behind the idea, endorsing a 20-year licence to a group of retail entrepreneurs to lead the venture, including David Morris, the former director of Food & Restaurants at Harrods.

The cafés are reportedly set to be called Cadbury Cocoa Houses, offering affordable afternoon tea and a dedicated chocolatier service that will make large versions of Cadbury chocolate bars on site, such as Twirls, Curly Wurlys and Flakes, that can be wrapped as gifts.

As many as 60 sites could be opened across the UK over the next three to five years, with negotiations already starting with landlords with a view to possibly launching in London before the end of the year, according to reports.

Cadbury is said to have been in discussions over the plans for several years. Morris is expected to become chief executive of the venture, with retail entrepreneur Marilyn Newman as chairman.

The launch would come at a robust time for the coffee shop sector, which has shown remarkable resilience throughout the recession.

— Daily Mail