A burger lover does not have far to travel to get their fix in Dublin. They just have to walk up Dame street and they can eat in Bóbós or go right next door to Bunsen. If that doesn’t suit, they need only go across the road to Rick’s. If they are feeling particularly ‘Goldilocks’ they can go to the various other streets in Dublin lined with burger places. The last decade saw a rapid expansion of burger eateries, particularly in Dublin. This growth is now at a standstill and many factors could potentially cause closures in the near future. 

In Dublin, the burger trend ran parallel to the doughnut one. During approximately the last eight years, burger places and doughnut shops popped up all around the city. Those who chose to invest their money in doughnuts rather than burgers probably backed the best trend out of the two, especially going into the new decade. Krispy Kreme in Blanchardstown is a clear example of how Dublin’s population just cannot be satisfied when it comes to glazed goodness. The branch sold 6.6 million doughnuts in its first year open in Ireland. 

Doughnut shops are relatively cheaper to run compared to burgers. Most have ‘grab and go’ type business models and do not need a large venue, indoor seating, alcohol licences and many other elements that go into creating a successful restaurant. The basic cost of running a restaurant aside, emerging financial factors are putting a huge strain on restaurants that want to expand and, for some, stay open. 

Rising costs and staying current

Rent is the main restriction for people who want to grow their burger business into a lucrative chain, according to those in the industry. But it is not the only financial factor hitting the expansion of burger restaurants in the city. Many in the restaurant industry are facing the heat of the increasing cost of insurance. At the end of 2019 Adrian Cummins, chief executive of the Restaurant Association of Ireland (RAI), received a letter from the association’s broker Dolmen Insurance. The letter stated that “a number of insurers have exited the Hospitality/Leisure market and may not be offering 2020 renewals.” AIG, Axis, Contessa and Surestone were all referenced in the letter as insurance companies that intend to reduce their business with the restaurant sector in Ireland.

If there is expansion to be had, we are primarily looking at Germany at the moment

Owner of Eddie Rockets Niall Fortune

In December of last year, restaurants and cafes asked the government for a bailout to help them cope with insurance costs. They were looking for financial assistance similar to the one that the government provided to creches, where they gave them €1,500 specifically for dealing with insurance increases. Minister for Finance Paschal Donohoe insisted this was not a bailout and said that the government would not be providing financial assistance to eateries who are being burdened by the insurance crisis.

The increase in minimum wage is also a factor affecting those in the restaurant business as many cannot afford to keep on staff as well as paying for all the other expenses. Rent, insurance, staff and other requirements such as the cost of equipment are not the only factors that are limiting growth potential. The increase of the Vat rate from nine per cent to what it was in the Celtic Tiger (13.5 per cent) has already led to the closure of five restaurants in the first month of 2020 and many more are expected to follow. The increase in Vat was condemned by those in the restaurant business, especially those who run small to medium sized independent eateries, because they usually run on tight margins. Restaurants with 75 per cent of turnover coming from food should return a margin of between 12 and 15 per cent. The average restaurant could be on an even lower margin of six to seven per cent according to Cummins. 

The reason for increasing the Vat rate was to cash in on Ireland’s tourism sector but this decision is creating damning consequences for those in the restaurant industry, according to many at the coalface. 

Take the case of the Jo’Burger Group. The company owned by Joe Macken was put into liquidation at the end of 2018. Award winning restaurants such as Hey Donna, Crackbird, and the eponymous Jo’Burger all ceased trading in December of 2018. 

“A combination of factors including challenging trading conditions have forced this move. Jo’burger, Crackbird, Hey Donna and Bar Giuseppe will cease trading effective immediately,” said Macken on the closure. 

Increasing costs mixed with tight margins is creating a difficult situation for many restaurants. One thing that bodes well for the burger business is that burgers are relatively cheap to make. Especially with beef prices falling. Whether it’s the bog-standard burger or the more up-market style burger, the price does not fluctuate hugely. Therefore, if a consumer wants to dine out, a cheap and well presented burger is an appealing option. 

However, this presents a different problem for burger sellers. How do you make such a common and loved product different? 

As well as the challenge of making a classic sandwich unique, other trends are making those selling and making burgers think differently. For example, the rise of more people becoming vegetarian or vegan. Many burger places are now offering a vegetarian patty to keep up with this trend.

The Bunsen success story

Global burger giants, such as Burger King, McDonalds and Five Guys compete with each other when it comes to delivering burgers straight to the customer within minutes for next to nothing in price. It is difficult to penetrate this market and offer something different. Especially when you’re talking about quite a simple sandwich. For one man though, simplicity is at the core of his burger business which is one of the most successful burger restaurants in Ireland.

Bunsen’s entire limited menu is printed on the back of business cards displayed at each table in their restaurants. The emphasis is clearly on the meat in Bunsen as they do not yet offer a vegetarian or vegan burger alternative. They do, however, offer a grilled cheese for their non-meat eating customer. 

“Almost every city in the world has multiple burger places and Dublin is no different. Needless to say, some are better than others,” said Bunsen owner and chef Tom Gleeson. 

What they’re doing seems to be working. Big 7 Travel, an online site that provides information and and insightful content for globe trotters, gave Bunsen the number 7 slot in their list of The 50 Best Burgers in Europe, earlier this year. 

Bunsen teased its Twitter followers hinting at the location of their new restaurant in September 2019. After a brief period of anticipation, they unveiled their new burger place on Baggot Street on October 4. To mark the occasion, they dished up free burgers. 

This was the second Bunsen to open its doors for the first time in 2019. The chain went international in March when it opened in Barcelona. In total there are now nine Bunsens in the world. One in Barcelona, one in Cork, one in Belfast and six dotted around Dublin. 

“We have lots of competitors and it’s not limited to burgers. Any fast casual places that serve a meal for €10-15 is a competitor and there are lots of good restaurants at that price in Dublin now,” says Gleeson.

Recent accounts from Bunsen’s parent company Bolus Restaurants, showed the company suffered a loss of €24,000. This is a mere blip on the radar for Bolus Restaurants and its subsidiaries, having reached sales up to €5.2 million in 2016 which earned them a spot on the Financial Times list of the fastest growing companies in Europe. 

Gleeson’s love of burgers started the same way it did for many others in Ireland – with Eddie Rockets and McDonalds, he told The Currency. It was when he moved to New York in 2011 that this love peaked due to the variety on offer. When he returned  home, he became disenchanted by the Irish burger market.

“After 2 years of trialing recipes and looking for a premises, I got going on Wexford street.  The menu hasn’t changed from that day to now. We still mince all of our own beef in each restaurant every morning and I feel this makes all the difference,” says Gleeson. 

Press Up’s Wowburger

Paddy McKillen Jr’s Press Up Entertainment Group is an empire built on recognising trends and expanding them. Therefore, it is no surprise when the hospitality group set up Wowburger in Dublin.

Although the restaurant Captain America is part of its lengthy client list, the focus of Wowburger is to supply fast, cheap food that looks somewhat fancier than what you might get elsewhere for the same price and speed. Wowburger joins the 46 restaurants bars and hotels in the group. Together these employ 1,700. Most of the outlets are operating under standalone brands, Woburger being the obvious outlier. 

Wowburger, undercuts its competitors slightly. A typical burger is served up for €6.45 in silver wrapping and placed in a decorative red basket to give an American diner feel to the culinary experience. This is compared to a €7.45 burger from Bunsen or The Classic at Eddie Rockets priced at €7.85. 

Wowburger joined Bunsen on the Top 50 burgers at 38th place and opened the first of six restaurants in Dublin in 2017. 

Press Up’s Wowburger is also a contributing factor to why some other burger restauranteurs cannot expand. The pace at which Wowburger grew, both physically and in success, put others on the backfoot. Bóbós is one example.

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Bóbós re-generation

One Irish burger chain that is starting to feel the heat is Bóbós. With Bunsen as their neighbours and Rick’s, a small vibrant blue coloured burger haunt across the road, they are familiar with competition. Thunder Road restaurant, which recently rose to prominence for their bloody vegetarian burgers, is also just a short walk away from Bóbós towards Temple Bar.

“We were a little bit worried,” said co-owner John Zhu as he spoke about Bunsen opening up so close to them.

These worries faded as Summer 2019 was one of the busiest for Bóbós, which Zhu attributes to Ireland’s level of tourists. 

Currently there are three Bóbós in Dublin employing 50 staff and expansion of three or four more across the county was seriously considered two years ago. 

Zhu became involved with Bóbós after he returned to Ireland from visiting China to find that, in the midst of the recession, he lost his job as kitchen staff in Abrakebabra.

“There are so many burger restaurants at the moment. Too many,” said Zhu. 

Bunsen’s presence in the burger market was one reason Bóbós was reluctant to grow the chain, but Wowburger was also a contributing factor.

“They expanded so fast,” says Zhu about the Press Up burger business. 

BóBós was established by Jay Burke pre-crash in 2006. Burke then let the business to Zhu in 2010 and asked him to take over management. 

Zhu became involved with Bóbós after he returned to Ireland from visiting China to find that, in the midst of the recession, he lost his job as kitchen staff in Abrakebabra. He worked in Ryan’s pub for one year before meeting his meeting with Burke which would lead to him taking over the chain. 

Zhu, like Tom Gleeson, believes they burger at the end of the day is what matters when it comes to business.

Yet, contrary to its name, Bóbós does more than beef burgers. They also create pork, lamb, chicken and vegetarian options available at an average cost of just over €10 although it’s 7oz Hamburger is priced at €6.95. However, it’s The Dubliner €11.95 The Dubliner that comes out as the best selling burger at Bóbós which includes Dubliner cheese. 

Eddie Rockets proves the test of time

Eddie Rockets is a curious case in the burger market as what made it different is what other operators are now monopolising on. It was once the fancier side of fast food next to McDonalds which provides simple, cheap and addictive fast food. Eddie Rockets ‘fast causal’ with an American twist business model is similar to that of Wowburger. 

Owner of Eddie Rockets, Niall Fortune, lived up to his name after he created an empire for himself on a foundation of burgers. He recently celebrated 30 years of success with his chain.

His main competitor, still to this day, is the global fast food success, McDonalds. He says McDonald’s is everyone’s competition. This is difficult to dispute with burgers from the American giant being priced at €2. 

The pair dominated the market in Ireland for years. Now, the diverse range of burger establishments in Dublin aim to offer either cheaper burgers than their neighbours, a better dining experience or both. 

When asked how he would describe the current burger market in Dublin, Fortune laughed and said “highly competitive.” 

“Over the last seven or eight years the ‘better burger’ market has flourished,” says Fortune. 

Behind burgers under €10 is an industry worth millions. Recent accounts showed revenue of Eddie Rockets amounting to €20 million, albeit the company’s pre tax profits being €1.4 million in 2017 dropping to €330,070 in 2018. 

Fortune’s American style diner aims to deliver fast food burgers with a gourmet twist. For example, their sweet potato fries, secret sauce and malt milkshakes. Over recent years, Fortune decided to open a smaller version of the chain called Rockets, which provides a faster causal dining. 

As well as owning a less well known restaurant called Flash Harry’s, Fortune also opened up The Counter in Dublin, which he has also taken over seas.

“Counter is more upmarket than Eddie Rockets. It’s obviously that bit more expensive as well,” he said. 

Despite similarities and differences in how they both do business, Fortune told The Currency that Wowburger is not a threat. 

Fortune recently did a deal with a large company which signed up to open a certain amount of Eddie Rockets in train stations and travel hubs in Germany.

Eddie Rockets still trades successful with 23 restaurants across Dublin alone. 

With a reputable name for quality burgers at home in Ireland, it’s obvious to see why it is bringing their food elsewhere in Europe as well. 

Fortune has an Eddie Rockets in Spain and two in Germany.

“If there is expansion to be had, we are primarily looking at Germany at the moment,” said Fortune. 

He recently did a deal with a large company which signed up to open a certain amount of Eddie Rockets in train stations and travel hubs in Germany.

“I wouldn’t say we wouldn’t. We’re practically in every location that would be of interest to us,” said Fortune on the prospect of opening a new Eddie Rockets in the city. 

“I think the rents are peaking,” says Fortune who attributes current cost of letting to why the burger place expansion has stopped. 

“There’s loads of money around. People can borrow money and they can do what they like with it,” he added. 

Fortune doesn’t seem overly worried about the “healthy competition” left as a result of the burger business growth over the past decade.  

“Often when you see 10 restaurants in a row, it means there’s business there. You’ve just got to get a few percentage points for everybody,” he says.

Supermacs still a country favourite

One famous burger haunt in Ireland still divides burger lovers in the capital. Supermacs, owned by Pat McDonagh, is still one of the most lucrative fast food places in the country but it’s presence is mainly felt in rural Ireland rather than in the city. For example, some rural towns such as Ballina in County Mayo have two. 

This stems from its strong ties to Galway especially as the main sponsors for Galway GAA and as its owner is a Galwegian himself. 

With more emphasis on other parts of the country, McDonagh just opened his latest Supermacs in Westmeath. Even with his nationwide success, there are still 12 Supermacs in Dublin and serves up burgers at just €2. 

McDonagh made headlines when he tackled McDonaldsover the use of the trademark prefix “Mc” and won. A judgement from the European Union Intellectual Property Office stated that the American fast food firm lost the right to use the prefix on some items on their menu. Not backing down, McDonagh is set to tackle McDonalds in another legal battle. 

McDonagh also recently entered the conversation around the controversial beef talks and believes that burger bosses should be in attendance. On this issue he also stated that there should be compromise on both sides. Even if that means the price of patties, for businesses like his, rises by a few cents.