Supermacs spent up to €7m on staff housing as company enjoys record revenues

Gordon Deegan

Supermacs boss Pat McDonagh has said his group has spent between €6 million and €7 million on houses for staff.

In an interview, Mr McDonagh said the recruitment of staff was “the biggest challenge” facing his fast food and hospitality business today.

He said currently there are between 200 to 250 Supermacs staff in mainly houses specifically purchased to accommodate staff.

Asked how much Supermacs has spent on purchasing properties to accommodate staff, Mr McDonagh said: “It is a guesstimate, but you are talking between €6 million to €7 million.”

“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 added: “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 Supermacs group today employs “well in excess of 2,000” with 45 different nationalities among the workforce.

He said: “It is difficult to get staff, especially Irish staff at the minute.”

Mr McDonagh made his comments on new accounts for Supermacs (Holdings) Ltd showing pre-tax 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 2022 “was a recovery year and a pretty good year”.

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

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

The accounts show that the group recorded a 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 now operates 116 Supermacs outlets and is “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.

The accounts disclose that the group repaid €777,359 to Mr McDonagh from outstanding loans owed to the MD leaving a balance owing of €4.99 million to Mr McDonagh at year end.