Welcome to the first weekly edition of Bord Bia's Ireland Market Foodservice Newsletter.
When we sent out the March newsletter just three weeks ago, we didn’t foresee how dramatically the world would change over such a short period of time. Given the rapid rate of developments, we will be moving this newsletter to a weekly publication until such time as some form of stability returns. A number of the news stories will reflect relevant developments in the UK Foodservice market that may help to stimulate thought starters for others.
Any feedback or suggestions, please feel free to email or call me directly.
One of the key resources introduced by Bord Bia in response to the Covid-19 crisis is our dedicated website support at www.bordbia.ie/covid Appreciate that everyone’s Inbox is being swamped at the moment with news updated and opinion pieces, but if you can, please take the time to check out some of the following:
Support for client companies (including our marketing grant scheme)
Bi-weekly Webinar Series (topics to include ‘How to drive traffic and sales to your website’ and ‘Business Continuity during Covid 19’)
Daily Podcasts (featuring 1-2-1 interviews with our overseas offices and our Dublin based Sector Managers)
Bi-weekly Market Insights Report (with up-to-date global trade information populated by our international colleagues).
GENERAL INDUSTRY NEWS
Ireland’s economy is set to shrink by 15 per cent because of Covid-19 pandemic, the OECD has said
www.businesspost.ie – 31.03.2020
This is the mildest contraction of any OECD country, according to the think-tank’s research, but does not take account of Ireland’s GDP being skewed by the level of multinational activity here. The level of GDP will not insulate Ireland from sharp falls in consumer spending and higher unemployment levels. The tourism industry will be particularly badly hit by the restrictions in response to the pandemic, the OECD said. The report found that the impact of the economic shutdowns around the world could lead to a 25 per cent decline in many countries, with consumer spending falling by a third. This would be a more severe downturn than during the start of the global financial crisis in 2008, the OECD said.
Government announces new COVID-19 Income Support Scheme
www.gov.ie – 24.03.2020
The government has announced a National COVID-19 Income Support Scheme.This will provide financial support to Irish workers and companies affected by the crisis. A temporary wage subsidy of 70% of take home pay up to a maximum weekly tax free amount of €410 per week to help affected companies keep paying their employees. This is the equivalent of €500 per week before tax. Workers who have lost their jobs due to the crisis will receive an enhanced emergency COVID-19 Pandemic Unemployment Payment of €350 per week (an increase from €203).
QUICK SERVICE RESTAURANT (QSR) & PUB SECTOR
McDonald's to close Irish restaurants
www.rte.ie – 23.03.2020
McDonald's will temporarily close all its restaurants in Ireland and the UK by 7pm on Monday, 23rd March. The fast-food company said: "This is not a decision we are taking lightly but one made with the well-being and safety of our employees in mind as well as the best interests of our customers." Chief Executive Officer of McDonald's UK & Ireland Paul Pomroy said: "Over the last 24 hours, it has become clear that maintaining safe social distancing whilst operating busy takeaway and Drive Thru restaurants is increasingly difficult.
New national initiative sees pubs to trade as food shops
www.propelhospitality.com – 01.04.2020
A new national initiative will enable pubs to trade as food shops offering essential items such as bread, eggs and milk. Powered by e-commerce trading platform StarStock, mypubshop.com will allow pubs to process orders online to provide a valuable income stream. The service is a partnership with Brakes, Coca-Cola European Partners and Use Your Local and is open to pubs across the UK. The partnership with Brakes will also open up the service to the 15,000-plus pubs the wholesaler supplies. It will offer participating venues a food shop “starter kit”. The venture is being run as non-profit, with surplus revenue donated to the NHS.
HOTEL & RESTAURANT SECTOR
HSE's Citywest deal de-risks Starwood portfolio
www.independent.ie – 31.03.2020
The use of the 750-bedroom Citywest Hotel in Dublin by the HSE as a Covid-19 isolation centre has "significantly de-risked" the hospitality lending portfolio of Starwood European Real Estate Finance, which has a €60m loan against the property. The hotel is the largest hospitality exposure in the Starwood firm, and equates to about 10pc of its total invested assets as of the end of last December. The hotel is owned by Tetrarch Capital.
Opinion Piece: Nicola Knight: UK foodservice today and tomorrow
https://retailanalysis.igd.com – 26.03.2020
As the UK government announced tighter social distancing guidelines, dine-in spaces had to close. Takeaway and delivery are still allowed, but the processes involved in providing these services raise concerns for the wellbeing of staff and customers. With major national chains such as Greggs, McDonalds, Subway, Pret, KFC and Burger King closing stores completely, the opportunity for independent operators to fill the gap is huge. Smaller players with fewer staff, potentially from the same family, who can react quickly are better placed to continue (or begin) to serve local customers who in turn will spread the word via social media channels.
ROUTE TO MARKET & CONTRACT CATERING
Pallas Foods offers Click and Collect service direct to consumers
https://collect.pallasfoods.com/ – 08.03.2020
Pallas Foods, one of Ireland’s leading wholesalers, has introduced a Click and Collect service direct to the general public in response to the Covid-19 crisis. Order Day 1, for collection Day 2, with pick up locations in Dublin, Cork, Limerick and Athlone.
'Feed the Heroes' campaign raises over €550,000 to help frontline staff in coronavirus battle
www.independent.ie – 31.03.2020
A group set up to raise money to help feed the frontline workers battling the coronavirus has hit more than €550,000 in donations. 'Feed the Heroes' announced the milestone as it said more than 18,500 meals have been delivered nationwide. “We have been completely blown away by the response of the Irish people,” said Cian O’Flaherty, who founded the group as the first cases of the virus arrived on these shores. The organisation partners with restaurants and takeaways, caterers and commercial kitchens to prepare and deliver the meals and co-ordinates with the frontline teams to ensure they get to where they are needed. So far meals have been delivered to staff at the Covid-19 testing Centres, HSE contact tracing, the National Ambulance Service and the Fire Brigade as well as hospital workers.