Fast-food restaurant operators allege Supermac’s founder is trying to destroy their business

The operators of a Limerick-based fast-food restaurant have claimed before the High Court that Supermac’s founder and businessman Pat McDonagh is trying to destroy their business.

The action has been brought by John and Mary Lyons, who operate ‘The Hungry Lyons’ fast-food restaurant from premises allegedly owned by Supermac’s, located on Ennis Road in Limerick.

Their restaurant is in one of two connected properties. The other is used as a bowling alley and amusement arcade known as ‘Funworld’.

They claim that in breach of the terms of a lease agreement they obtained in respect of their premises in 2018, Supermac’s and Mr McDonagh have been selling fast food from Funworld.

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They seek an injunction restraining that activity, which they claim is part of “a concerted attempt by Mr McDonagh to destroy” their business.

The claims are denied.

The Lyonses, from Mungret, Co Limerick, claim the entire premises is owned by Supermacs Ireland Ltd. They claim they pay the rent on the property to Supermac’s managing director, businessman Mr Pat McDonagh.

They also allege Mr McDonagh is Funworld’s managing director and it is a subsidiary of Supermac’s.

The Lyons claim they for many years operated a Supermac’s franchise from the premises up until 2019, but claim that arrangement ceased due to the “commercial pressure” that was placed on them by the defendants.

In 2015 the couple took Mr McDonagh, in his then alleged capacity as landlord of the premises, to the Circuit Court where they sought a new tenancy agreement in respect of the property.

They claim that in 2018 the Circuit Court made orders including that they were entitled to a 20-year lease with rent of €125,000 per year.

They claim that the lease agreement includes a non-compete clause where the landlord cannot assign or sublet any part of the premises to anyone who intends to operate a fast-food restaurant or delicatessen.

The plaintiffs claim that, in breach of the 2018 lease agreement, the defendants have installed cooking and storage facilities in the Funworld premises, and have begun selling food from the premises.

They claim that works on the facilities commenced late last year.

It is claimed that in recent months Funworld advertised on social media that it was offering children’s birthday parties with fast food and that it was selling Supermac’s food directly from the premises.

The Lyonses sought an injunction under section 160 of the Planning and Development Act in respect of the works being carried out on the premises, claiming that it was unauthorised development.

That application was dismissed by Limerick Circuit Court which they have appealed.

The defendants deny any planning breach has occurred.

In an affidavit to the court, Mr Lyons said that since obtaining the lease in 2018, “against Mr McDonagh’s wishes,” he has retaliated against them, first by withdrawing their Supermac’s franchise, and now “by going into direct competition with us”.

In their proceedings, they seek an injunction restraining the defendants from assigning, letting, to any person who operates or intends to operate a fast-food restaurant or delicatessen from the adjoining property.

They also seek an injunction restraining the defendants from selling fast food from the adjoining property.

The injunctions would remain in place pending the outcome of the full hearing of the dispute.

The Lyonses previously obtained permission from the High Court to serve short notice of the proceedings on both Supermacs Ireland and Mr McDonagh, who are the defendants in the couple’s action.