They’re frying without wings…
Directors for Eddie Rockets are concerned for the future of the franchise following reports of major losses in the past year.
The company warned shareholders in a report that the losses could be enough to finish the company following 32 years in business since 1989.
The Covid pandemic was cited as the cause of the deficit this year, with losses of over three million euro reported for the past year.
In comparison, a loss of around six hundred thousand euro was logged for the year previous.
The pandemic had a major impact on those employed by Eddie Rockets as well, with over a third of staff being laid off in the past year.
In regards to the future, directors are concerned about future repercussions of the pandemic, including a global recession.
“Even after restrictions are lifted, there is a risk of a recession in Ireland and possibly globally, potentially depressing customer demand, resulting in a period of excess supply in the restaurant market”, it said in a report.
“Understandably, customers may also become more reticent about mixing in a social setting and cut-back on time spent in public spaces such as restaurants, bars and hotels.”
The company is certain it will be able to fully reopen once restrictions have been lifted, but there are still concerns for what may follow.
The company had received several grants from the government in the past year to support with staff and maintenance costs, but are looking for support from landlords and creditors moving forward.
“However, notwithstanding the foregoing, the directors believe that the above circumstances still represent a material uncertainty which may cast significant doubt on the company’s ability to continue as a going concern”, it added.
Eddie Rockets currently has 50 restaurants across the country.
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