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  • Author: Roisin O’Sullivan, Market Specialist Madrid, Bord Bia - The Irish Food Board

    To Eat Out or Not Eat Out….that is the Question as the Spanish Foodservice Sector Slowly Reopens

     

    With the official state of alarm lifted, life is Spain has now entered into the “New Normal”

    Following on from months of one of the strictest lockdowns in Europe, people are regaining their freedom and slowly starting to venture out. However many consumers are torn between their desire to get out of their homes and their anxiety over the protocols in place as they tentatively and hesitantly return to foodservice outlets.

     

    According to data from various reports from consultancies EY & Bain and Foqus and the University of Valencia, the Foodservice sector estimates an average loss of 400,000 jobs in 2020, Of the 1.7 million people employed in the sector before the crisis, only 1.4 million are still registered with social security (according to INE data).

     

    José Luis Yzuel, President of Hostelería de España,(The Spanish Horeca Business Confederation) also provided data underlining the delicate situation that the sector is going through and has ensured that currently 20% of the more than 300,000 foodservice establishments in Spain have closed permanently. By the end of the year, it is estimated that between 20 and 30%, that is, between 55,000-85,000 establishments will end up permanently closed. Yzuel also highlighted the importance of tourism in Spain, with a 12.3% contribution to GDP, Spain is the second country in the world for receiving tourists, just behind France, with a record 83.7 million visitors in 2019. It is also the second country with the highest income from tourism, behind the US. Given all these figures, Yzuel detailed the demands that the sector must make on the Government calling for promotional campaigns for the revival of the gastronomy and tourism sectors.

     

    Big Spanish industry players have also shown support for the Spanish horeca sector by making investments and setting up promotional campaigns. Some examples of these are:

     

    Mahou San Miguel is investing up to 75€ million in the Horeca industry, the largest rescue plan in the sector. The ambitious aid plan for bars and restaurants, is so that they can operate at the highest possible rate, generate consumption and above all protect employment. Mahou is a family company, where "people are at the centre", which is why it guaranteed work to its more than 4,000 employees, after not accepting any Temporary Employment Regulation File (ERTE) from the government during the pandemic.

    Some of the elements of the rescur plan are The 'Rentabilibar' platform which offered training and legal advice during confinement to the Horeca establishments, and also the terrace budget has been expanded to 2.5 million euros.

     

     

    Ron Barceló will invite up to 100,000 free drinks in 1,500 establishments around Spain to reactivate consumption. Grupo Varma, the owner of the Ron Barceló brand and more, decided to implement a plan for the revival of the hospitality sector by injecting 1.5 million euros to cushion the economic impact of the coronavirus pandemic, while simultaneously encouraging the return to bars under security measures.

     

     

     

     

    The Osbourne group will also treat Spanish consumers to a drink to boost consumption and reactivate the hospitality industry. Specifically, the company launched the #LaPrimeraRondaLaPagaOsborne campaign (#ThefirstroundisonOsbourne) an initiative which aims to promote the sector, by the hand of the group's own employees and consumers. The firm will give each of its more than 1,000 employees a voucher of 60 euros that they can then exchange in bars and restaurants throughout Spain.

     

    Europastry signed a collaboration agreement with the technology platform for hospitality and tourism establishments, BR Bars & Restaurants with the aim of promoting the digitization of business in the Horeca sector. According to this alliance, the frozen dough company will offer all its clients, within its E-volution plan, services such as placing orders through digital letters, payments from mobile phones, delivery and take away, without commissions or intermediaries, to promote the digital transformation of hotels, bars and restaurants which will be key services going forward post covid.

     

    Both Industry and official associations will continue to do all that they can to support this critical sector for the Spanish economy.