Business Irish

Friday 21 October 2016

McDonald's to provide table service as sales rise

Gordon Deegan

Published 13/11/2015 | 02:30

Customers queue to order food inside a McDonald's restaurant in Manchester. Photo: Bloomberg
Customers queue to order food inside a McDonald's restaurant in Manchester. Photo: Bloomberg

Table service is to be shortly rolled out across McDonald's restaurants in Ireland as the operation here last year bucked the fast food giant's global trend and increased sales.

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Globally, McDonald's suffered a downturn in sales last year, decreasing by $665m to $27.4bn but here revenues increased by 3pc to €80.8m.

The filings by McDonald's Ireland show increased costs that included a €9m spend on three new outlets resulted in pre-tax profits declining by 8.6pc to €13.6m last year.

CEO of McDonald's Ireland, Adrian Crean, said yesterday that "the McDonald's brand in Ireland continues to go from strength to strength".

Mr Crean said that the rise in revenues last year was attributable to sales growth in existing outlets along with the revenues generated at three new locations: Kilkenny, Ballincollig and Dublin airport.

Asked how the Irish operation has bucked the global trend in 2014 of a downturn in McDonald's sales, Mr Crean said: "We continue to evolve the customer experience and making the brand relevant to our customers."

Mr Crean said that as part of this in 2016, table service is to be rolled out through a number of McDonald's restaurants and "we would hope that the vast majority of restaurants would have table service over the next two to three years".

Mr Crean said that the move is in response to customer feedback.

On the increase in revenues in 2014, Mr Crean said that products such as McDonald's wrap offerings and breakfast offerings, along with the core business of burgers, contributed to the increase in business.

He said: "We have also led the way in transparency being the first Irish restaurant business to put calories on our menus."

Mr Crean said that McDonald's deepening relationship with Ireland's agri sector also resonates with customers.

He said: "This year, we will purchase 40,000 tonnes of Irish beef - if McDonald's was an export destination for Irish beef exports, we would be the fourth largest."

Mr Crean said that business has continued to increase this year boosted by two new store openings.The company is aiming to open four to five new stores in 2016.

In 2014, McDonalds operated 12 stores while 75 were operated by franchisees.

Irish Independent

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