Supermacs boss, Pat McDonagh has stated that his group has spent between €6m to €7m on purchasing accommodation to house staff.
In an interview, Mr McDonagh said that the recruitment of staff is "the biggest challenge" facing his fast food and hospitality business today.
He said that currently, there are between 200 to 250 Supermacs staff in mainly houses specifically purchased to accommodate staff.
Asked how much Supermacs has spent on purchasing properties to accommodate staff, Mr McDonagh said: "It is a guesstimate but you are talking between €6m to €7m."
"In a lot of areas, we are accommodating staff where it is difficult to get accommodation. It is not always possible but where we can we do," he said.
"You need to have a stable workforce and if you can provide accommodation at a reasonable rate then it is beneficial to both parties," he added.
The group today employs "well in excess of 2,000" with 45 different nationalities amongst the workforce.
"It is difficult to get staff, especially Irish staff at the minute," he added.
Mr McDonagh made his comments on new accounts for Supermacs (Holdings) Ltd showing pre-tax profits increased by 15% to €34.02m in 2022.
This followed revenues increasing by €80.6m or 41% from €195.69m to €276.2m in 2022.
Mr McDonagh said that 2022 "was a recovery year and a pretty good year".
He said that revenues increased by another 15% in 2023 on 2022.
"Turnover is one thing but margins is another thing and margins are getting eroded with extra costs including wage costs, food costs, recruitment costs while energy costs have more doubled since 2019," he added.
Mr McDonagh said that 2024 is more challenging because of the rising costs "and people tightening their belts in certain quarters".
The accounts show that the group recorded post tax profit of €28.95m last year after incurring a corporation tax charge of €5.07m.
The profits for 2022 further strengthened the group balance sheet with accumulated profits of €216.85m at the end of 2022. Cash funds increased from €61.58m to €85.97m.
Mr McDonagh said that today, the group operates 116 Supermacs outlets "and planning to open two to three this year".
Staff costs in 2022 increased from €38.99m to €52.98m as numbers employed increased from 1,503 to 1,711.
The profit for 2022 takes account of non-cash depreciation costs of €6.3m.
The accounts disclose that the group repaid €777,359 to Mr McDonagh from outstanding loans owed to the MD leaving a balance owing of €4.99m to Mr McDonagh at year end.
The accounts also show that a provision of €1m has been recognised for compensation claims and the provision is expected to cover the costs of any liability that may arise. €72,000 of the total was utilised during 2022.
Reporting by Gordon Deegan
