Business

Supermac’s spends up to €7m on housing staff

Between 200 and 250 staff were living in houses specifically purchased by the company to accommodate workers

Supermac’s on O’Connell Street, Dublin: The fast-food chain has spent between €6-€7 million on housing its staff, founder and owner Pat McDonagh has said.

Gordon Deegan
Wed May 15 2024 - 16:17

Fast-food chain Supermac’s has spent between €6-€7 million on housing its staff, founder and owner Pat McDonagh has said.

Recruitment of staff was “the biggest challenge” facing his business, Mr McDonagh said in an interview. “It is difficult to get staff, especially Irish staff at the minute.”

Between 200 and 250 staff were living in houses specifically purchased by the company to accommodate workers.

“In a lot of areas, we are accommodating staff where it is difficult to get accommodation. It is not always possible but where we can, we do”, he said, as the group published its latest accounts.

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“You need to have a stable workforce and if you can provide accommodation at a reasonable rate then it is beneficial to both parties.”

The group currently employs “well in excess of 2,000″ with 45 different nationalities among the workforce.

The accounts for Supermacs (Holdings) Ltd showing pretax profits increased by 15 per cent to €34.02 million in 2022.

This followed revenues increasing by €80.6 million or 41 per cent from €195.69 million to €276.2 million in 2022.

Mr McDonagh said that 2022 “was a recovery year and a pretty good year”.

He said that revenues by another 15 per cent in 2023.

“Turnover is one thing but margins is another thing and margins are getting eroded with extra costs including wage costs, food costs, recruitment costs while energy costs have more doubled since 2019,” Mr McDonagh said.

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He said that 2024 was more challenging because of the rising costs “and people tightening their belts in certain quarters”.

The accounts show that the group recorded post-tax profit of €28.95 million last year after incurring a corporation tax charge of €5.07 million.

The profits for 2022 further strengthened the group balance sheet with accumulated profits of €216.85 million at the end of 2022. Cash funds increased from €61.58 million to €85.97 million.

Mr McDonagh said the group operates 116 outlets “and planning to open two to three this year”.

Staff costs in 2022 increased from €38.99 million to €52.98 million as numbers employed increased from 1,503 to 1,711.

The profit for 2022 takes account of non-cash depreciation costs of €6.3 million.

Gordon Deegan

Gordon Deegan

Gordon Deegan is a contributor to The Irish Times

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