Profits fall at Eddie Rockets

Profits at American-style fast-food diner Eddie Rockets fell by more than two-thirds last year after the group's two directors increased the value of their pension fund through the purchase of property.

Net profit at the six outlets that the group directly owns dropped to €272,556 in 2004, from €777,517 a year earlier. The figure also includes franchise revenue from the 19 other Eddie Rockets outlets, which pay a percentage of their turnover as a franchise fee to the holding company.

Turnover at the six outlets increased 5.8 per cent to €7.3 million, from €6.9 million a year earlier. The outlets owned directly by Eddie Rockets and therefore included in these results are South Anne Street, Donnybrook, O'Connell Street, Dame Street, Blackrock and Wexford Street, all in Dublin.

Total turnover for all the Eddie Rockets outlets, which include a diner in Galway and two in Limerick, was €23.5 million last year, according to the most recent Top 1,000 Companies report .

The total remuneration of the two directors, the group's founder Niall Fortune and his wife Anne, increased by 60 per cent last year to €935,000. The accounts from the six outlets that the group directly owns show that pension contributions increased to €660,000, up from €60,000 a year earlier.

Overall, the salaries of the group's 144 staff increased marginally to €2.72 million. Total employment costs rose by 23 per cent to €3.63 million.

Eddie Rockets, which was developed on a 1950s American rock'n'roll theme, trades as a mid-market fast-food restaurant, which claims to distinguish itself from other fast-food outlets by offering waiter service.

The chain hopes to benefit from an increased tendency to eat out, as well as a growing desire for convenience food.

Mr Fortune opened the first diner in Dublin in 1990, and seven years later had 15 outlets in operation, 10 of which were operated as franchises. Currently, the group has 17 outlets in the Dublin area, 11 of which are run by franchisees. The most recent outlet was opened last month in the Omni Park Centre in Santry.

The opening of a franchised operation in Gran Canaria in 2000 was the start of a push by the group to expand overseas. According to its website, a franchisee can expect to make a pretax profit of €169,680 a year.