McDonald's to provide 500 jobs

RESTAURANT GROUP McDonald’s plans to create up to 500 new jobs over the next two years by opening eight new Irish outlets.

The fast-food company, which estimates its value to the economy at almost €200 million annually, said yesterday it would invest €12 million by opening four new restaurants this year and would “hopefully” do the same in 2011. A McDonald’s outlet typically employs 62 people.

The expansion will bring the chain’s store total to 82, with 3,850 employees in the Republic.

John Atherton, managing director of McDonald’s Ireland, said the investment highlighted the “resilience” of the brand’s business, “despite the recession”.

A report by economic consultants Indecon, paid for by McDonald’s, claims the group’s overall impact on the economy amounts to €198.7 million annually, based on 2008 data. In addition, the report notes, McDonald’s is “facilitating” Irish food exports of almost €200 million each year, including €80 million-worth of beef. This translates into one in five hamburgers sold in McDonald’s European outlets being made with Irish beef, which is supplied by a combination of Irish Food Processors, Kepak and Dawn Meats. Some 4,000 Irish farmers raise cattle for the group’s beef products, Mr Atherton said.

In addition, according to the report, McDonald’s exports more than €60 million of Irish dairy products, purchased from Kerry Foods, to its European outlets.

The consultants also estimated, with the help of CSO data, that these food exports lead to further “knock-on” exports worth €202 million, as additional activity was generated.

McDonald’s operates 14 of its Irish restaurants on its own behalf, with 64 run by its 30 Irish franchisees. The group as a whole had sales of about €200 million last year, which was a flat performance. Mr Atherton said growth of 3 per cent this year would make the company “very happy”.

He noted that the Republic was an expensive business environment but said McDonald’s had succeeded in controlling costs.

The first of this year’s openings will come in Finglas, north Dublin, with two of the remaining three also planned for the capital. The fourth new restaurant will be “provincial”, Mr Atherton said.