We need your help now
Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
By continuing, you are indicating that you accept our Terms of Service and Privacy Policy.
PROFITS SOARED AT the company behind fast-food chain Supermac’s last year, more than doubling to just under €12 million.
According to new accounts just filed by Supermac’s Ireland, the company had sales of just over €116 million in the 12 months to the end of 2015, up nearly one-quarter on the tally for the year before.
The firm, which is owned by Galway entrepreneur Pat McDonagh and his wife Una, who set up the first outlet in the chain at Ballinasloe, County Galway in 1978, made an operating profit of just under €14 million compared to slightly under €10 million in 2014.
After paying out about €2.2 million in taxes, Supermac’s was left with a net profit of €11.9 million – more than double the €5.7 million reported by the business the year before.
Windfall
An average of 1,336 people were employed by Supermac’s Ireland during the year, up from 1,032 the year before. This resulted in staff costs rising from about €22 million to just over €27 million.
The accounts also show that Pat McDonagh and his wife Una received a major windfall during the year, as Supermac’s Ireland purchased property from the pair at “open market value” of nearly €27 million. Some €10.4 million was still due to be paid to the couple at year-end.
As well as owning more than 100 Supermac’s outlets, McDonagh also owns several hotels, fast-food outlets and motorway petrol stations – most notably his Barack Obama Plaza in Offaly.
The directors report for Supermac’s Ireland noted: “The activities of the group are diverse. They incorporate the hospitality sector, including quick service restaurants, hotels, service stations and the property sector.”
Expansion
McDonagh said at the start of the year that Supermac’s expected to open six new branches during 2016 in a move that would likely create at least 200 new jobs.
However, while it continues to expand across Ireland, the chain has apparently been stymied in its plans to move into mainland Europe and Australia due to opposition from American fast-food giant McDonalds.
The US company, which operates about 34,000 outlets across the world, had filed a 41-page complaint with the EU’s Office for Harmonisation in the Internal Market (OHIM) about Supermac’s pending bid for a Europe-wide trademark.
In its decision, OHIM has partially upheld McDonald’s claim, rejecting Supermac’s trademark application for a number of items including food and drink services.
While Supermac’s was awarded its own trademark in Europe, it lost the part of the case which allowed it to sell its core products – including toys, food, drinks, coffee, ice-cream and meat.
Written by Paul O’Donoghue and posted on Fora.ie
To embed this post, copy the code below on your site
“After paying out about €2.2 million in taxes, Supermac’s was left with a net profit of €11.9 million”
Good to see they actually seem to be paying the right % of tax, quite a few companies of their size could do with doing the same.
Pat Mc Donagh is a true entrepreneur . He has diversified into subs , dinners , coffees , filling stations , hotels etc etc these profits are not just on junk food.
Finnster, the petrol station outlets are franchises.
He’s an investor, not an entrepreneur.
But fair dues regardless
Aye he invented the sangwidch.
Not all are franchises Tom… For example last Friday a new filling station and Supermacs opened in Charlestown Co Mayo; this particular one is fully owned by Pat and his wife. Point taken though as many of the rest of them are indeed franchises.
Yes he didn’t get the Idea from Mcdonalds, Subway and pizza parlours. True entrapenour.
@Vincent Wallace: can you get a mighty mac, curry chips and a pizza slice from any of the places you mentioned, whilst also buying Irish? No is the answer.
For his sponsorship of Galway hurlers through the years I make it my mission to support him by eating a snack box in O’Connell street on the days I go to Croker to watch Kilkenny spank us!
Pat started sponsoring Galway in 1989.
12 months after they won their last AI.
It’s been great for Pat but sadly not so for Galway.
100% agree seamus
I was in Tullamore there in 2014 for a Leinster semi final replay of Kilkenny Vs Galway.I just couldn’t believe my eyes when after the match I was walking back up the main street and seen a massive line for the towns Supermacs,it was out the front door and up the street! (no exaggeration).Fair play to the galway supporters
I Love their garlic and cheese fries :)
Smokey bacon burger.
Some amount of Sangwiches.
Fair play to them. However I must point out that they use ketchup on their burgers east of the Shannon, but in the West they use the proper burger sauce. I know the proper sauce is merely a mix of ketchup and mayo, but please ensure consistency in the product range.
They have to cater to cultural tastes I suppose.
@Bob McShane:.The Dubs won’t eat the burger sauce. Evrywhere else they do. Kilkenny all down south east anyway.
This is the multimillionaire who went to the High Court to abolish EROs which set minimum pay and conditions for workers in lower-paid jobs.
Yet judging by the comments here,he is some kind of hero.
@Sum Yung Guy: Sure jasus he sponsores the Galway hurlers. Who cares about his contempt for the people who make his millions for him.
I hear he was originally in the business of selling really good rain coats but when that venture failed he started selling burgers and kept the name supermacs. Ture story.
From Wikipedia, you rascal:
The Restaurant was named together by locals and its owners: The founder, Pat McDonagh, earned the nickname ‘Supermac’ whilst playing Gaelic football for the Carmelite College in Moate. This then became the natural choice of name for his business, “Supermac’s”
@Seymour business:I’m ture it is.
Guess you say Supermac’s are becoming obese on the profits from junk food.
The business class will say – Great news.
Unfortunately the health of the nation is at stake here.
@Frederick Burden: No one’s forcing anyone to go in Frederick. Again, it’s all down to education (and not a sugar tax!)
How about people take some personal responsibility for their own life and choices they make…can we at least start there?!
Frederic, can’t go with that at all. It’s a different issue. Fair play to them. McDonalds came to Ireland in 1978 too. A great success story.
I’m not surprised. I got a snack box on Saturday after an absence of 2 years or so. It used to be well up there as far as quality was concerned.. If such a comment is applicable to fast food. But jaaasus it was bad…very very bad!
It’s obviously cost cutting and relying on a drunk customer base. Not sustainable I fear Mr. McDonagh
Not sustainable? Did you read how much profit they are making? I wouldn’t think he’d be taking advise from the journal commentators
They changed their taco fries recipe a few years ago…very disappointing now
Why?
As a bouncer friend of mine once told me.. “after a lash of pints people would ate shite on a stick if you put the right sauce on it “.
Of course they are.i remember when a snack box was 3.40.its 7 something now.
Papa Johns must be doing alright then !
Great to see, years of had work and investment paying off for Pat. Of course for our friends on the hard left Pat is everything they despise , some one who through business ability and entrepreneurship created a company that employs hundred of people. They would have more regard for a scrumbag thief off the street because he is “misunderstood” and has been forced into crime by big bad capitalism . To them Pat is evil because he tried to make a profit and better himself and his family.
Snack box with curry is unreal
They take in all that money and he still won’t pay his workers minimum wage.
Give it to the homeless!
have your say