Italy’s Foodservice Sector – A Slow Recovery

Italy’s foodservice sector is estimated to have lost €12b since the beginning of the year.

Now out of lockdown one month – the recovery is slow with estimates suggesting 20% of restaurants are unlikely to reopen. Italy’s foodservice sector is dominated by independent outlets mainly family owned. This sector is an important outlet for both Irish beef and seafood – accounting for up to 60% of our beef sales which are mainly premium steak cuts and over 75% of shellfish sales.

The industry has had to adapt to the new normal:

Customers are prepared to eat outside but not inside. According to “The fork”, a highly popular app in Italy, the online searches for restaurants with outdoor areas tripled in June.

Indeed in Milan the number of “terraces” has increased substantially to accommodate this requirement. The cities government has relaxed rules governing terraces dining allowing a significant increase as an effort to help the sector. This has been an important life saver for the sector.

Restaurants, across all categories have taken to the internet offering home delivery via platforms like “ Glovo” and “dilivero” however making margins through such platforms is difficult with a minimum of 29% commission charged on sales.

Restaurants have focused on enhancing their own internet presence offering “call and collect “services which have proved very popular in Italy. Consumers are prepared to pay for an mid price range or upmarket meal, come to the restaurant to pick it up but prefer to eat it in the comfort of their own home. Additionally the online presence allows customers to brose the menu without touching a physical menu card.

New food delivery platform ‘Ultimo Tocco’, created by two food designers and a chef. Meals are prepared but separated into component parts for consumers to finish by combining at home

Incentives to woo customers back include  innovative formulas to entice customers to return to the end of the forced closure in their restaurant, such as the "restaurant bonds" , or "pay one get two ”that can be spent until the end of the year, or online reservations for the subsequent reopening with a 20% discount on the chosen tasting menu. 

The big challenge remains – getting restaurant goers to eat inside.

Plastic dividers on table to provide safety while customers opt to stay away.