No one's cashing in the chips in fast-food trade

Although National Healthy Eating Week is just ending, nutritionists may despair of the eating out habits of the population whose…

Although National Healthy Eating Week is just ending, nutritionists may despair of the eating out habits of the population whose love of fast food has, if anything, increased as people cook less and eat out more. McDonald's, the largest "branded informal eating out restaurant" in the State, serves more than 150,000 people a day, while its indigenous Irish competitor, Supermac's, has an estimated 50,000 customers.

A Department of Health survey published last week showed that 12 per cent of the population eats fast food once a week.

That Dublin's O'Connell Street has long been dominated by such outlets is a testimony to the sheer money-making capacity of burgers and chips. People eat out all day and, it seems, most of the night.

The fast food industry varies from the sophisticated marketing which latches on to each new Disney film at one end to the traditional fried fish in batter and hand-cut chips at the other.

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In between there are medium-sized players, offering their own spin on the immediate menu, such as pizzas, kebabs, and buffalo wings (barbecued chicken wings).

McDonald's is the ultimate fast food restaurant, cutting out cutlery, waiting staff and lengthy cooking periods, frying chips in 90 seconds on an oil temperature of 180C. In 1995 McDonald's was serving 1 per cent of the world's population. Symbolic of the globalisation of capitalism and new consumerism, it is also a symbolic enemy.

The "McLibel" trial which ended in London last June, resulted in a £60,000 award for McDonald's for a leaflet which damaged its reputation, a paltry amount considering the 314-day case cost the food giant an estimated £10 million.

The judge found that accusations that it paid low wages, was responsible for cruelty to some of the animals used in its food products and exploited children in its advertising were true.

But it is a small price for the company's success, not least in Ireland where Andy Corcoran, country manager, estimates that McDonald's has more than 4,000 seats and 2,869 employees in its 38 restaurants, 30 of which are operated by 14 franchise companies.

Last year, its 20th year in business since opening its Grafton Street premises, turnover amounted to £60 million on the basic formula of providing a meal of bread, meat and potatoes.

"Our preferred route is franchising. We find that franchising brings in someone who commits their own capital to the McDonald's investment," he says.

From Widnes, outside Liverpool, Mr Corcoran began his career as a trainee manager and was running 40 restaurants in the East Midlands in England when he was asked two years ago to develop the Irish market.

He views training of McDonald's personnel as advisers in human resources and marketing departments. "It is a resource really for the marketplace."

He says that there is still considerable scope in Ireland. Towns which, with their hinterlands, amount to populations of 30,000 have the potential to accommodate a 100-seat restaurant.

"I would like to open at least 10 this year. I would like to get 75 by the end of the century. I think there is ample opportunity for that."

"We have already secured Mullingar and that will open in November. We have Naas opening in June, Castlebar in July and Mallow in August."

McDonald's operates two forms of franchising, one, the Business Facilities Lease, whereby the premises is leased by McDonald's, and the franchise is bought within three years.

The conventional franchise involves a franchisee initially putting up 40 per cent of the restaurant's total purchase price and borrowing the remaining 60 per cent of a restaurant, which typically costs about £300,000.

A net profit margin of 4 per cent is aimed for, amounting to a return of up to 30 per cent on the whole investment over 10 years.

Mr Corcoran says that Burger King and Supermac's are "the major competitive force" but McDonald's relies on its `Q,S&C' formula quality, service and cleanliness.

"We monitor and audit and measure all restaurants in each of those areas to ensure that the consistency of product for our McDonald's is present, so that people will know what to expect."

In a world which is often unfriendly to children, McDonald's has gone in the opposite direction, marketing heavily this customer category.

"Our core customers are mothers with children. They make up the majority of our customer base, or families with children."

Supermac's, with 34 restaurants, 19 of which are franchised, and with a turnover of £30 million, is snapping at the heels of McDonald's Ireland. The next outlet is opening in Castlebar on May 22nd. Supermac's also aims to have two more outlets in Dublin and has four premises in the planning application stages for Cork, Maynooth, Co Kildare, and Carrickmacross, Co Monaghan.

The first takeaway was opened in Ballinasloe, Co Galway, in 1978, a year after McDonald's established on Grafton Street. The rural beginnings of the managing director, Pat McDonagh, marked the future direction of his company, as he successively established in country towns, making the Eyre Square premises in Galway the flagship restaurant, sponsoring Galway hurling teams, and not moving to O'Connell Street, Dublin, until January, 1991.

"The success of our business is due, to a large degree, to the variety of the menu, the Irishness and the friendliness of the staff," he says.

He learnt the importance of repeat trade in the country areas whereas cities are more "a numbers game", he says.

"It is all about looking after the customer. If you are in a rural area, you are very dependent on the customer coming in twice or three times a week," he says.

Now he is increasingly developing the franchise side of the business, moving away from a system which served him well of giving his managers first option on franchising.

"That has worked very well. It was a good opportunity for us and a good opportunity for them. The disadvantage is that we denude ourselves of quality managers. . . We are now in the market for franchising," he says.

While he is exploring opportunities in the North, he says that he will not attempt developing the business internationally despite "requests to look further afield". "We would like to get our home business fully structured and sytematised. There are still plenty of opportunities."

Niall Fortune, the one-time owner of Flash Harry's in Blackrock, Co Dublin, is now the managing director of Rockets Restaurants. He introduced the 1950s-themed restaurant concept eight years ago when he launched the Eddie Rockets chain on the Irish market.

His only frozen product are his chips or "American French fries" as he prefers to call them. "We feel we are halfway between a standard fast-food restaurant and a standard restaurant," he says.

This is reflected in his average customer spend of £6, and his turnover across 16 restaurants, seven of which are company owned, is £12 million. Fortune relies on prime city-centre premises and feels, with the exception of Cork where a premises on Patrick Street remains elusive, that the Irish market is saturated.

A branch in Limerick is due to open and after that he is looking to Europe and beyond, opening in Madrid in September, and exploring an option in Singapore. "We are inundated with international enquiries" he says.

Burdock's in Dublin has seen a revival of its fortunes after being associated with Werburgh Street, off Christchurch Place, for many years. In the 1950s, it had seven chippers in the city but now the number is back up to three, with outlets in Phibsborough and Rathmines.

Fresh fish and potatoes daily has been the trademark of the family firm, with the 60 stones of potatoes used every day being "chipped" as they are needed rather than being left soaking in water. "We feel that that takes the goodness out of the potatoes," says Denis Burdock, whose uncle, Leo, opened the premises at Christchurch in 1913.

Denis Burdock has seen the dramatic changes around Christchurch, with the building of Jurys Inn and apartment developments, leading to a new clientele.

"There has been a big swing in general in the fast food industry. There are more people going out and buying food instead of cooking it themselves.

"Mainly it is the value we are giving out. We are famous for giving out good value, big fish, and fresh fish and chips.

The secret, he says, is in the lard. "A lot of people would tell you that lard is bad for you but if you get a good product, you will eat it and you will think of the consequences of it afterwards."

Lennox's in Cork has has had two branches since the early 1950s on Tory Top Road and on Bandon Street. Ms Carol Lennox, who is one of the second generation running the restaurant at Tory Top Road agrees that sticking to the traditional formula "nice fresh fish and chips, not frozen like McDonald's" has been the mainstay of the business, although the product range has increased to include hamburgers, pies and sausages. "Also when you run it yourself, it makes a difference," she says.

P.J. McDonagh in Galway went to England to learn the craft when he closed his fish shop to open up his fish and chip business beside his McDonagh Seafood House.

"I have been to New York and I have been all over Europe and nobody does fish and chips like the English, and that is the recipe we followed," he says. He and his wife, Mary, went on a course and talked to Seychelles in London, and Harry Ramsden's of Glasgow, for advice on oil and potato types such as the Morris Piper and the King George.

"We give a good portion, and that is the other thing. . . people are mean with their potions.

"What I found is that if you pay an extra £1 or £2 and you get a good feed, you will not argue."

In Limerick, Jack O'Farrell saw a market for cooked fresh fish seven years ago and he closed his Arvode Sea Foods shop to re-open as The Lobster Pot restaurant on Henry Street, across from the Franciscan church. "I was in the fish business and it was saturated in the market, so I decided to cook it. I have not looked back since," he says. In Belfast, Long's on Atholl Street behind the Europa Hotel is yet another restaurant with the reputation for being the best chipper. Established in the 1920s John Copeland bought the business last month for "a lot of money" and he is continuing to provide the traditional fare of fish and chips. His only fish product is cod, brought in from Aberdeen, and he believes he is the biggest buyer in the North.

"It comes in really good quality. When you go through 55 stone a week that is a lot of cod," he says. Chips, too, are consumed in vast quantities, with Long's going through 55 four-stone bags a week, even though it sticks to its established opening hours from 11.45 a.m. to 6.30 p.m., Monday to Friday.