Jo’Burger seeks to cut costs after losses rise 46%
Franchise reduced number of waiters by six last year and shrunk wage bill by €400,000
Joe Macken of Jo’Burger pictured in the Rathmines branch of the restaurant. Photograph: Bryan O’Brien
Restaurant franchise Jo’Burger will seek to reduce costs after losses increased by 46 per cent last year, according to the latest accounts filed with the Companies Office.
The firm, which is owned by Dublin restaurateur Joe Macken and his family, saw losses swell to €205,552 for the year ended December 31st, 2016, up from €140,929 the year before.
In the accounts, the company’s directors said it was operating in a “competitive trading environment” and cited “high rental costs” associated with its retail units as key reasons for the losses.
“The directors recognise the difficult trading conditions in which the company operates and the importance of the company to improve its current performance and continue to implement operational efficiencies and cost reductions,” they said.
After depreciation of tangible fixed assets, operating losses at the company stood at €157,150, which was up from €140,818 the year before.
The franchise reduced its number of waiters by six last year, and shrunk wages and salaries from €2.3 million to €1.9 million.
Jo’Burger went into examinership in September 2009 owing €350,000 before it successfully restructured its debt and bounced back.
Earlier this year, Mr Macken and his family regained full control of its six trendy Dublin restaurants, after buying out the majority share that was held by business partner John Roberts.
Mr Roberts, who helped rescue the Jo’Burger group from examinership, sold his near 60 per cent stake to a company controlled by Mr Macken. He declined to reveal how much his former partner paid him, but said it was an amicable arrangement.
The deal included three Jo’Burger outlets in Rathmines, Smithfield and the city centre, as well as three other Dublin venues: Crackbird, Bear and Skinflint. The group employs 87 staff.
The firm opened Crackbird, originally a pop-up restaurant in which bookings were taken via Twitter, on Crane Lane in early 2011. The venue is home to pizza joint Skinflint, with Crackbird now permanently located nearby on Dame Street.