McDonalds planning to grow its Irish division

McDonalds, which celebrates its 21st anniversary in Ireland this year, plans to recruit 2,500 additional staff and to open 36 new restaurants by 2000 bringing the total number of restaurants to 75 and doubling its staff numbers. Announcing details of McDonalds' future development and employment plans in Ireland, country manager, Mr Andy Corcoran, said the company already had planning permission for outlets in Castlebar, Liffey Valley (Quarryvale), Mallow, Mullingar, Roscrea, and Swords.

"We will have seven openings at a minimum this year and we are hoping 12 will pan out," Mr Corcoran said.

Of the existing 39 restaurants, 31 are run by franchisees who are generally required to invest around £300,000 in the operation, depending on its size and location. The average return on investment for Irish franchisees is more than 60 per cent, Mr Corcoran says.

Some 62 per cent of all McDonalds restaurants worldwide are franchises and Mr Corcoran described it as "the way forward". He added that McDonalds only offer franchises to individuals and not absentee investors which is one of the key to its success.

The organisation now operates some 23,200 outlets in 110 countries worldwide but Mr Corcoran said reports of saturation were not warranted.

"We only serve 1 per cent of the world's population. There is considerable room for growth and we believe we can still add restaurants," he said.

In Ireland, sales have grown by 9 per cent to date this year and the company is hoping for turnover of £75 million, up from £60 million last year.

Mr Corcoran says that, as there is only one restaurant for every 50,000 people in Dublin, further opportunities exist. However outlets have to be sited correctly so they don't damage business at existing restaurants.

He notes that in towns with a McDonalds some 57 per cent of 15 to 55 year-olds visit the restaurant each month, on average three times every 28 days.

From August, the company is introducing a new wage structure under which it will pay employees £4.00 per hour. Some 30 per cent of its workforce is full-time with 70 per cent made up part-time employees ratios that will apply to the new jobs.