SUPERMAC’S managing director Pat McDonagh plans to invest as much as €40 million in up to six “travel plaza” service stations over two to three years.
The investments will follow the construction of a €7 million motorway service station at Moneygall, Co Offaly, which is expected to open next year.
Mr McDonagh described the new developments as a “necessity” against a backdrop of increased motorway usage. He already owns “one or two” such businesses on a smaller scale, having become interested in the area after expanding his Fresh Express food brand into existing service stations.
“That’s the type of area that’s presenting an opportunity for the future,” said Mr McDonagh, explaining Supermac’s had decided to develop the Moneygall travel plaza itself after losing out in bids to provide food services for motorway stations operated by Applegreen and Topaz.
“Applegreen went with Burger King and Topaz went with McDonald’s. We decided maybe we can do this ourselves.”
Supermac’s also hopes to expand its parent brand by opening five or six outlets this year, bringing the total close to 110. The new Supermac’s restaurants will include a drive-through in Sligo and a service station franchise in Monasterevin, Co Kildare.
A typical new store fit-out costs about €250,000, while Mr McDonagh has also pencilled in €8 million for refits of existing restaurants in 2011.
Supermac’s has not yet finalised results for 2010 but Mr McDonagh said performance was “pretty level” on 2009, when operating profits of €5 million were recorded on turnover just shy of €60 million.
The results are expected to include a first contribution from Claddagh Irish Pubs, a 15-strong US pub/restaurant chain controlled by Mr McDonagh.
He wants to expand the chain to up to 80 outlets within five years, possibly through franchising. A site in Orlando has been obtained. The average fit-out of a Claddagh pub costs up to $2.5 million.