Manufacturing & Supply Chain

McDonald’s has launched an economic impact report, ‘McDonald’s in Ireland’, highlighting the significant economic contribution of the company in Ireland. The independent report* looks at the impact McDonald’s has on the Irish economy through employment, supply chain expenditure, the purchase of Irish produce for domestic use and export, and the support for local communities across Ireland.

The report reveals that McDonald’s contributed €196 million** directly to the Irish economy in 2017, through restaurant activity, employee salaries and its contribution to the national exchequer.

The report also highlights the significance of McDonald’s long-term partnerships with Irish suppliers including Dawn Meats (beef), Dew Valley Foods (bacon) and Kerry Group (dairy). Direct spend with Irish suppliers in 2017 accounted for a further €53 million*** of revenue to the Irish economy. McDonald’s is one of the largest purchasers of Irish beef by volume, working with over 1,200 farmers in Ireland who supply beef to all McDonald’s restaurants in Ireland.

Paul Pomroy, Chief Executive, McDonald’s UK & Ireland, commented on the report: “In 1977, the first set of golden arches appeared on Grafton Street in Dublin. Since then, we’ve continued to evolve to meet the changing needs of customers and society. With our vast reach across Ireland, we, together with our franchisees, have a unique opportunity to make a real and lasting impact in the local areas that we serve, the businesses we work with and the people we employ.

“We are very proud to launch this important report; the success of McDonald’s in Ireland would not be possible without our customers, suppliers, crew members and the dedication of our Irish franchisees, who provide local jobs, economic opportunities and ongoing community engagement across the year.”

Exports and Agri-business

Beth Hart, Supply Chain and Sustainability Director, McDonald’s UK & Ireland.

McDonald’s also has a major presence in the export industry in Ireland, purchasing significant quantities of Irish produce which is used to provide meals in McDonald’s restaurants in the UK and across Europe. The report found that the value of Irish produce bought by McDonald’s for export to other European McDonald’s restaurants was estimated to be worth at least €163 million in 2017.

Beth Hart, Supply Chain and Sustainability Director, McDonald’s UK & Ireland, said; “This Economic Impact Report highlights our strong partnerships with Irish suppliers and our commitment to Irish produce, which is vital to our business here in Ireland and across Europe. We are proud of our long-standing relationships with suppliers; such as Dawn Meats, who have been supplying beef patties to McDonald’s since 1986.

“As the trading relationship between Ireland and the UK evolves over the coming years, we want to reinforce our commitment to Irish agri-business, to our Irish supply chain partners and to the wider Irish economy. We will continue to expand our business and our offering in Ireland over the coming years, delivering great value, quality and service to our customers.”

McDonald’s and Employment

McDonald’s is one of the largest employers in Ireland. There are currently 5,942 people employed across the country in restaurants and its head office. Young people under the age of 22 represent over 40% of McDonald’s workforce in Ireland, and for many, McDonald’s is their first full-paid job, allowing them to kick-start their careers.

Hard-working Franchisees

The report also shines a light on the hardworking McDonald’s franchisee community who are at the centre of McDonald’s story in Ireland. The vast majority of restaurants in Ireland are run by franchisees; many started their careers as crew members and are now running restaurants across the country, providing hundreds of jobs to the local economy, offering training and development for staff, while also playing an active role in their communities.

Franchisees go above and beyond to give back and champion their local communities. This includes raising funds for The Ronald McDonald House Charities Ireland, participating in local Tidy Towns campaigns, and sponsoring local GAA, Rugby and Soccer clubs across the country, enabling McDonald’s to have a positive impact on communities right across the country.

Regional Impact

The report also reveals that McDonald’s has made a significant impact at a local level across the island of Ireland. Of the €196 million total national economic impact, the majority of economic output is generated in Dublin (€83.7 million), followed by Cork (€18.1 million), Waterford (€10.0 million), Kildare (€7.3 million), and Limerick (€7.0 million).

Commenting on the impact of McDonald’s in Ireland, Danny McCoy, Chief Executive of Ibec, said; “McDonald’s story began in Ireland in 1977 with just one restaurant on Grafton Street. In the four decades since it has grown to include restaurants all over the country, providing vital employment for thousands of people. The importance of McDonald’s to the Irish economy cannot be underestimated. I would like to congratulate McDonald’s, its franchisees and its employees on the publication of this Economic Impact Report.”

* The ‘McDonald’s in Ireland’ report was produced by Development Economics to understand the impact McDonald’s has made to the Irish economy, local communities, its employees, customers and suppliers.

Research methodology

All estimates of overall economic value have been independently produced and are the responsibility of Development Economics. Financial and other data used to generate these economic estimates was supplied by McDonald’s, by individual franchise operating businesses, and by businesses that comprise key elements of the McDonald’s supply chain.

** This figure is based on direct, indirect and induced contribution to the Primary Urban Area in which restaurants are located. It is measured by Gross Value Added (GVA) which takes the value of goods and services produced by a specific business sector or in a sub-national geographic area and is calculated as the difference between output and intermediate consumption (i.e. costs excluding wages).

*** This figure is based on direct contribution to the Primary Urban Area in which restaurants are located. It is measured by Gross Value Added (GVA) which takes the value of goods and services produced by a specific business sector or in a sub-national geographic area and is calculated as the difference between output and intermediate consumption (i.e. costs excluding wages).

• Direct GVA is the net income and salaries earned by McDonald’s, franchisees and employees
• Indirect GVA is the net income and salaries earned by suppliers and their employees
• Induced GVA is the net income and salaries earned by businesses as a result of purchases made by McDonald’s employees and supplier employees.