An independent economic report commissioned by McDonald’s to mark its 40th anniversary in the UK, reveals the business and its suppliers make a combined annual contribution of £76* million to the Northern Ireland economy.

In 2013 McDonald’s in the UK spent almost £99m sourcing goods and services from Northern Ireland, £14m of which was spent on agricultural produce. The report finds that overall the business and its supply chain is estimated to be worth £2.5 billion annually to the UK economy.

In February 1991, McDonald’s opened its first restaurant in Belfast and Northern Ireland now has 26 restaurants employing over 2,100 people locally. McDonald’s also supports a further 1,500 jobs by purchasing goods and services from businesses located here.

The ‘Serving the UK: McDonald’s at 40 Report’ was researched by Development Economics to assess the overall contribution McDonald’s has made to the UK economy, local communities, its employees, customers and suppliers since it first started operating in the UK.

Welcoming the report, Joanne Jones Head of National Operations, McDonald’s said:  “I’m incredibly proud of the progress of the business in Northern Ireland since we opened our first restaurant here. Today we directly employ over 2,100 people and 1,500 more through our supply chain. We are committed to growing our business and over the next three years are seeking to expand our workforce by creating 8,000 new jobs across the UK.

“Each day we serve thousands of customers across Northern Ireland and with all of our restaurants here run by franchisees we have helped not only to stimulate regional investment, but become one of the largest private sector employers of young people. 

“With 26 restaurants in Northern Ireland our belief is that if we help communities to prosper we will prosper too. We are continuing to invest in the local economy and a new dual drive thru restaurant is scheduled to open on the Boucher Road in the summer. The major investment will create significant direct and indirect employment including a boost to the manufacturing, construction and service sectors.”   

Important contributors in the McDonald’s supply chain throughout Ireland, the UK and Europe includes Kerry Food’s cheese-making facility in Coleraine, beef suppliers; WD Meats, the Foyle Food Group and Linden Foods and Delta Print and Packaging factory located in West Belfast.

Delta has had a long-term supply relationship with McDonald’s stretching back to 1998 and  manufactures sustainable and compostable carton-board packaging for all McDonald’s menu items including fry cartons and clamshells, from its primary base in Belfast. Delta produces over one billion cartons each year for McDonald’s, who has introduced the company to other elements of its international work allowing Delta to improve its operations and consistently expand.

Linden Foods, one of McDonald’s major beef suppliers in Northern Ireland has had a long term supply relationship with McDonald’s since 1999. In recent years McDonald’s has been working closely with a number of Lindens beef producers to improve their environmental awareness through McDonald’s Sustainable Beef Clubs which aim to  help beef farmers find and share ways to make changes to their working practices so they can drive greater efficiencies on their farms.

Today, McDonald’s offers all its employees access to nationally-recognised qualifications as a benefit of working for the company.  Employees have the opportunity to gain a range of nationally-recognised qualifications from adult certificates in Maths and English to apprenticeships and a Foundation Degree for restaurant managers. 

ENDS

‘Serving the UK: McDonald’s at 40’ can be downloaded in full from the Newsroom at mcdonalds.co.uk For more information visit: www.mcdonaldsservingtheuk.co.uk To find out more about McDonald’s contribution in your area visit: www.mcdonaldsservingtheukinfographic.co.uk

Media enquiries please contact:• Louise Carson or Shane Finnegan at Aiken PR on 02890663000 or shane@aikenpr.com

Research methodologyFinancial 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. However, all estimates of overall economic value have been independently produced and are the responsibility of Development Economics.

* This figure is based on direct, indirect and induced contribution to the Local Authority District 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).

GVA impacts have been calculated based on assumptions for supply chain linkages based on a national, UK-wide input output model developed by the Office for National Statistics, using a 2013 price base.o Direct GVA is the net income and salaries earned by McDonald’s, franchisees and employeeso Indirect GVA is the net income and salaries earned by suppliers and their employeeso Induced GVA is the net income and salaries earned by businesses as a result of purchases made by McDonald’s employees and supplier employees

** This figure is based on the number of restaurants and employees within the Local Authority District up until December 2013.

*** This figure is the sum of the estimated annual GVA impact across the UK for each of the 40 years annually. It takes the 2013 calculations of the multiplier impacts and applies this ratio to the gross and net income for the years in which we have turnover data for McDonald’s (1994,2003-2012) and adjusts the values to 2013 prices.

****These figures are based on direct GVA and jobs related to all restaurants operated by that franchisee.

About Development Economics

Development Economics Ltd provides robust economics and demographics research, market analysis and strategy advice for private and public sector clients. Led by professionals with over 20 years’ experience of developing strategies for businesses and public sector clients, the company possesses expertise in undertaking economic impact assessments, feasibility studies, workforce development and regeneration strategies.

About ‘Serving the UK: McDonald’s at 40’

‘Serving the UK: McDonald’s at 40’ was published in June 2014. The report highlights and quantifies the economic contribution made by McDonald’s to the UK economy since it became established in the UK in 1974. All estimates of overall economic value have been independently produced and are the responsibility of Development Economics.

The focus of the report is on the impact of the directly operated and franchised restaurants operating in the UK, together with the headquarters and distribution networks and the UK-based supply chain including farming and food manufacturing.

McDonald’s in Northern Ireland• In Northern Ireland McDonald’s and its suppliers make a combined annual contribution of £76 million to the local economy.• In February 1991, McDonald’s opened its first restaurant in Belfast and Northern Ireland now has 26 restaurants employing over 2,100 people locally. McDonald’s also supports a further 1,500 jobs by purchasing goods and services from businesses located in Northern Ireland.• In 2013 McDonald’s in the UK spent almost £99m sourcing goods and services from Northern Ireland, £14m of which was spent on agricultural produce.

About McDonald’s UK

McDonald’s has run its business in the UK since 1974 and currently operates just over 1,200 restaurants across the UK.It prides itself on providing good food, supporting its people and being a good neighbour in the 1,200 communities it is a part of across the UK.