Malta’s nine-port McDonald’s franchise has seen the biggest drop in average revenue during the COVID pandemic compared to other Maltese franchisee Premier Capital’s restaurants.
Premier Capital, owned by Melo Hili’s Hili Ventures, operates McDonald’s restaurants in Estonia, Greece, Latvia, Lithuania, Malta and Romania.
However, in 2020, the Maltese restaurant chain was affected by a drop in revenue by an average of 15%, from 26.3 million euros to 22.2 million euros, according to the summary of the 2022 financial analysis.
In 2021, the revenue immediately increased to the previous level, reaching 26.4 million euros, and this year it is expected to increase to 31 million euros.
Although Premier Capital costs an average of €1.3 million to open each new McDonald’s outlet, the Maltese restaurant generates an average of €3.5 million in revenue.
Premier Capital’s largest chain of McDonald’s restaurants is in Romania, with 96 out of 175 this year. Total expected revenue in Romania would be €278 million, with an average of €2.9 million per restaurant – significantly less than in Malta.
Overall, Premier Capital’s McDonald’s outlets are expected to generate revenue of more than €500 million in 2022, with a pre-tax profit of just over €47 million.
Premier Capital said that despite the challenging conditions created by the pandemic, driving and delivery capabilities helped the McDrive and McDelivery group exceed expectations.
“As the pandemic situation approaches normalcy, the group has now largely resumed normal operating patterns,” said Premier Capital, which insisted there were no Covid-19-related job losses during 2021 as the group maintained its staff bonus of. of state personnel. wage support programs.
In fact, total revenue rose from €318 million in 2020 to €405 million in 2021, and pre-tax profit rose from €25.9 million to €45.3 million.
The group said it was monitoring the impact of the war in Ukraine on its operations in neighboring Romania and the Baltic states. Some of the group’s operations are exposed to inflationary pressures, supply chain disruptions and rising utility costs. However, it remains difficult to quantify these pressures and separate them from the turmoil in Ukraine and contemporaneous events related to the pandemic, but the complex impact on the footprint of managed restaurants could be significant.
In 2021, the group increased its total number of restaurants to 166, compared to 159 the previous year. Of these restaurants, 92 operate in Romania, 40 in the Baltic states – Estonia, Latvia and Lithuania – 25 in Greece, and nine in Malta.
During 2022, the group plans to invest more than 28 million euros to open new restaurants, with the rest for restaurant capital expenditures and digital upgrades. Investments in Malta will make up 7%.
Despite the Covid pandemic, the group has increased its reach by 20 restaurants since 2019, investing 31.6 million euros in new stores and 2.5 million euros in remodeling old stores. The 16 existing restaurants have been upgraded to match the latest McDonald’s services and digital platforms, allowing for table service and self-ordering kiosks. By the end of 2021, a total of 156 restaurants had deployed McDelivery.
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