Expansion costs drive losses at Five Guys fast-food franchise to €1m
Latest loss means fast food chain now has accumulated losses of €1.5m
Five Guys operates four outlets around Dublin at South Great George’s Street, Blackrock, Swords and Dundrum shopping centre. Photograph: Aidan Crawley
The Five Guys fast-food franchise in the Republic had losses of €1 million last year due to expansion costs, according to its most recent accounts.
The sons of billionaire financier, Dermot Desmond – Brett, Ross and Dery, – brought the US fast-food franchise here in 2016.
Five Guys operates outlets in Dublin at South Great George’s Street, Blackrock, Swords and Dundrum.
Accounts lodged by the Desmond brothers’ Anart Restaurants Ltd show it recorded losses of €1.1 million in the 12 months to the end of March last. The company lost €175,427 the previous year.
The 2019 loss takes account of non-cash depreciation costs of €224,415.
At the end of March last, Anart had accumulated losses of €1.5 million. Numbers employed in the franchise increased from 49 to 96, made up of 83 store employees and 13 in management.
The expansion also resulted in the value of the company’s fixed assets increasing from €978,217 to €3.7 million last year.
The company’s expansion was funded from additional loans of €2.54 million from group undertakings.
At the end of March last the company owed group undertakings €3.94 million and a note attached to the accounts states that the amounts owed are unsecured, interest free and repayable on demand.
The company’s cash pile increased from €128,223 to €184,188.
The Desmonds also operate the Five Guys franchise in Northern Ireland. The operating company, Nestrana Befast Ltd, recorded a pre-tax loss of £302,532 (€362,820 ) in the 12 months to the end of March last from its three outlets. Numbers employed increased from 27 to 65.