Supermacs shows big jump in revenue as focus on motorways pays dividends

FAST food restaurant group Supermacs has posted rising profits and a big jump in revenue.

Profit before tax at the chain rose to €15.9m in the year to the end of December 2016, up from just over €14m in 2015.

Revenue rose 18pc to €136.8m. In the two years since the beginning of 2015 retained earnings at the company have risen, from €59.2m to €84.6m.

The chain — which is owned by Galway businessman Pat McDonagh and his wife Una — has added healthier options to its menu in recent times. It has also opened new motorway stops such as the Barack Obama Plaza at Moneygall on the M7 and the Galway Plaza on the M6.

The company is an important employer in parts of the midlands and the west in particular. It recently announced that it would create 20 new jobs at a new store in Galway and 80 jobs in Longford with a new plaza development close to the town. The financial results showed that it employed more than 1,500 staff around the country at the end of December 2016, up almost 15pc on the previous year.

The results noted that Supermacs operates in “a very competitive environment with constant pressures on margins and costs” and it required a significant market share to remain profitable. This was increasing through the sourcing of strategic locations, it said. The economic recovery in Ireland “remains volatile”, it added. Earlier this year, McDonagh said that he was contemplating an international expansion of the business to build on its small US operation. It could focus on motorway service contracts in Europe, he said.