Welcome to the November edition of Bord Bia's Ireland Market Foodservice Newsletter.
To anyone that couldn’t make it to our Foodservice Seminar on Wednesday 8th November, please note that copies of the presentations are available at the following link. Our 2018 Irish Foodservice Directory and 2018Irish Foodservice Markets Insights Report are also available in .pdf format at this link. If you would like to order a hard copy of either report, simply send an email request to firstname.lastname@example.org
General Industry News
Tourism Ireland to increase spending amid Brexit concerns
Tourism Ireland is to increase its spending by €10 million to €45 million next year and mount its first new global advertising campaign in seven years. Faced with the combined threats of a no-deal Brexit, a significantly weaker sterling and a 4.5 per cent jump in the VAT rate which applies to the hospitality trade, the tourism body said it would be looking to strengthen its marketing programmes in the months ahead. Tourism Ireland said it had plans to grow overseas tourism revenue by 6 per cent to €6.5 billion and visitor numbers by 4 per cent to 11.67 million.
Dublin airport sees October passenger numbers rise to record high
Breaking News – 06.11.2018
Dublin Airport has had its busiest October ever with a record 2.8 million passengers passing through last month. The airport has seen an increase of 9% on the same month last year. Domestic flights have increased the most followed by flights to the Middle East, Africa and the Asia Pacific regions. Nearly 900,000 passengers travelled to and from the UK last month.
Quick Service Restaurant (QSR) & Pub Sector
McDonald's teams up with UberEATS to launch delivery service in Ireland
Irish Independent –08.11.2018
McDonald's has launched a delivery service in Ireland. The fast food giant unveiled their McDelivery service, which will be available to customers through participating outlets in Dublin, Cork and Galway. The initiative will be delivered in partnership with UberEATS and will be available to anyone within one and a half miles of selected branches. McDelivery will be available from 8am until midnight seven days per week. Sarah Carter, McDonald’s Director of Operations for the Republic of Ireland and Northern Ireland, said: “We are delighted to be introducing the McDelivery service to Ireland, after months of planning and lots of questions from McDonald’s lovers – we can finally reveal that the time has come, offering yet another level of convenience to our loyal customers”.
KFC Records Increase in Profits in Ireland and the UK
Hospitality Ireland – 07.11.2018
New accounts lodged by Banner Dell Ltd have revealed that KFC's operation in Ireland and the UK recorded pre-tax profits of £34.26 million (€39.25 million) last year, representing a rise of more than eight-fold on the figure for the previous year. According to The Irish Independent, the company's revenues rose 21% to £163.7 million during the 55 weeks ending on December 24, 2017, with operating profits increasing 10% to €8.5 million. Meanwhile, The Belfast Telegraph reports that KFC is investing £2 million in the construction of a new drive-through restaurant in Glengormley, Co. Antrim, as well as investing £3 million in home delivery services across all of its Northern Irish venues.
Wetherspoon looking for more pub sites as it hails Irish growth
Irish Independent – 20.11.2018
Wetherspoon will continue to look for other sites in Ireland, as it enjoys what it describes as "great success" with its five pubs in the Republic. Speaking as the business begins work on a new pub in Dublin, company chairman Tim Martin said that he was "pleased" to have three new sites in development in Ireland. "We have enjoyed great success with our existing five pubs in the Republic of Ireland, and are pleased that we now have three new sites in development," Mr Martin said. "We will continue to look for other sites." The latest development in the heart of the capital will see the UK chain invest €4m in a new pub on Lower Abbey Street. As many as 75 jobs will be created as part of the development.
Hotel & Restaurant Sector
US fund Apollo raises €204m to buy Irish hotel group Tifco
Irish Times – 20.11.2018
Documents compiled for Tifco, the State’s second-largest hotel group, suggest US distressed assets fund, Apollo Global, recently bought the company for just over €200 million, far less than previously estimated. Apollo agreed in September to buy the group, whose portfolio includes a management contract for the Clontarf Castle hotel in Dublin and freehold ownership of three Crowne Plaza properties, from Goldman Sachs, which took control from private Irish investors in 2014. Tifco runs 24 hotels, some of which it owns but many are operated under management contracts. When news first emerged early in the summer that Goldman had put Tifco on the blocks, rumours circulated in the property industry that the underlying assets could fetch €500m to €600m.
Hotel Construction Begins to Pick Up as RevPAR Rises
Hospitality Ireland –21.11.2018
New figures from commercial property company Cushman & Wakefield have revealed that construction of hotels in Dublin is beginning to pick up, with approximately 800 new hotel rooms coming on stream in the capital's market during the first three quarters of 2018. Additionally, 2,800 more hotel rooms were in the pipeline as of September 30, representing a 37% rise on the figure for the same period last year, as reported by The Irish Times. According to statistics from travel research firm STR, an undersupply of hotel rooms combined with buoyant tourist numbers led to a 7.1% rise in revenue per available room (RevPAR) in Dublin during the year to the end of October 2018. The average daily room rate in Dublin rose 3% during the 12 months, with the capital's occupancy rate increasing 0.6%.
New £300k healthy eating restaurant opens in Belfast's Soloist building, creating 25 jobs
The Irish News –31.10.2018
A new £300,000 healthy eating restaurant has opened in Belfast city centre, creating 25 jobs. Fronted by James Deery, Stacks Healthy Kitchen is set to provide a new approach to healthier eating in the city. Mr Deery said he is delighted to finally open the new eatery. “For us it is simple; we make healthier food that stacks up. We serve quality meals that are value for money, especially with our unlimited sandwich stacker deal. We want to franchise the model out and obviously want three or four outlets in the North, there's big plans.” Stacks is also serving coffee from Co. Antrim company Wake Up and Taste, and is planning to develop an app which will allow customers to order 10 customised healthy meals per week for home delivery.
Casual Dining & Contract Catering Sector
Pita Pit to open second Dublin outlet
Biz Plus– 26.11.2018
The Canadian food venture will open its second outlet in Dublin this December, which will be located beside Krispy Kreme in Blanchardstown. Pita Pit landed in Dublin in October 2018 to secure a helping of the capital’s bustling healthy fast food market. It follows fellow Canadian food venture Freshii, which launched in Ireland three years ago. Pita Pit’s first Dublin outlet is already operating in Point Campus, near the 3Arena. The Canadian franchise operates 650 stores in 11 countries. Co-founder Nelson Lang said that he plans to open Pita Pit franchises around Ireland from 2019. Up to 20 jobs will be created at each store, while ingredients will be sourced from several Irish suppliers, including Keelings, Pallas Foods and La Rousse Foods.
Healthy fast food chain Sprout to add up to five outlets in Dublin
Irish Independent –04.11.2018
Healthy fast food chain Sprout & Co plans to add up to five outlets across Dublin over the coming years. The business, which was established by brothers Jack and Theo Kirwan two-and-a-half years ago, also has plans for expansion outside of the capital with Cork and Belfast mooted as possible destinations. Sprout opened its seventh outlet on Exchequer Street in August and has offers from three landlords. The company is focusing on the Dublin 2 and 4 areas. Speaking to the Sunday Independent, co-founder Jack Kirwan said: "There's probably a limit in Dublin. There are seven at the moment and our ambition would be to grow that to 10 or 12 and then look at another city."
Waste not: the food business that throws nothing away
Irish Times – 24.11.2018
Last month, FoodSpace, a contract catering company feeding hundreds of people every day at 14 workplaces and colleges across Ireland, won an award for its sourcing at the Food Made Good awards run by the Sustainable Restaurant Association in the UK. The ingredients the company uses in its kitchens in such diverse locations as the Backweston Laboratory Campus in Celbridge and the NUIG colleges in Galway, have this in common: they are local and seasonal, free-range and high-welfare. Since its establishment two years ago as a division of facilities management company Apleona Ireland, FoodSpace has raised the bar on sustainability in its field, while offering customers a choice of unsubsidised hot main-course lunches for between €4 and €6, and still making a profit.