WELCOME TO THE APRIL EDITION OF BORD BIA'S IRELAND MARKET FOODSERVICE NEWSLETTER.
Although a long way out, we’re delighted to confirm that we have a date for this year’s Foodservice Seminar – please mark Wednesday, November 13th in your diaries! We also have a new venue this year. We will be moving to Johnstown House Hotel in Enfield, Co. Meath and are very much looking forward to accessing their newly refurbished conference and events centre. As per previous years, we will open online delegate registration via our website in September and share details of the agenda and speaker line up in due course
Monthly Spotlight: Virtual Brands Continue to Disrupt the Foodservice Industry
At the Internorga Foodservice Forum that took place in Hamburg on March 7th, Lanch GmbH outlined the growth potential for building virtual restaurant brands (particularly those that are aligned with internet personalities). In Germany, they have created two virtual brands – Happy Slice pizza and Loco Chicken fried chicken. Brands are matched with free space in existing restaurant kitchens and provide the franchisees with recipes, training and ingredients. Delivery is via existing third party food delivery platforms.
Another European virtual brand example is Incheon Korean Fried Chicken. Originally established in Belgium, this is a rapidly growing business that now has over 50 outlets in the Netherlands. It taps into the increasing popularity of Korean Fried Chicken and the ability to offer a simple menu at affordable prices.
As traditional ‘bricks and mortar’ high street restaurants come under continued pressures of rent, utility and labour costs, virtual restaurant brands (supported by influencers) will continue to gain traction. Suppliers should aim to keep track of those that are winning in this space, understand their supply chain structure and identify potential opportunities for new business.
GENERAL INDUSTRY NEWS
ESRI expects economy to grow over next two years
Business Post – 27.03.2024
Ireland’s economy is expected to grow throughout this year and into 2025, a report shows. The Economic and Social Research Institute (ESRI) said it anticipated growth in all economic activity indicators. It states that modified domestic demand will grow by 2.3 per cent this year and 2.5 per cent in 2025 while it anticipates GDP, heavily influenced by the multinational enterprise sector, to grow moderately at 2.5 per cent this year and 2.3 per cent in 2025. The increase in the cost of living has been one of the major challenges facing the economy over the past two years. The report states that, overall, the inflation rate is decreasing, primarily driven by the decline in energy prices.
Tourism And Hospitality Enterprises Could See €1.4bn Increase In Payroll Costs Up To 2026
Hospitality Ireland – 22.03.2024
A new report published by the Irish Tourism Industry Confederation (ITIC) has warned that government labour policy will add €1.4 billion to payroll costs of tourism and hospitality enterprises between now and 2026. ITIC has said that mitigation measures are urgently needed to ensure the competitiveness and viability of Ireland’s largest indigenous industry and biggest regional employer.
QUICK SERVICE RESTAURANT (QSR) & PUB SECTOR
Irish sustainable restaurant business opens seventh site
Propel – 26.03.2024
Irish sustainable restaurant business Sprout & Co has opened its seventh site in the country. The business, which grows much of its own produce at its own farm in Rathcoffey, County Kildare, has opened in the former Listons gourmet grocer at 25 Lower Camden Place in Saint Kevin’s, Dublin. Sprout & Co operates five other restaurants in Dublin and one in County Kildare.
Spend In Irish Pubs Up 27% In February
Hospitality Ireland – 15.03.2024
The busiest day for spend in Irish pubs last month was on Saturday, February 24, when rugby fans watched Ireland beat Wales in the Six Nations. This is according to AIB’s latest monthly spend trend report which is compiled from 67 million debit and credit card transactions in store and online. The report shows spend in pubs saw the biggest increase in February (+27%), as Ireland’s Six Nations rugby campaign began. Spend in pubs increased most among those aged 25-34 while the biggest increase in spend was in Sligo (+32.31%) followed by Waterford (+31.81%) and Tipperary (31.26%). The lowest increase in spend in pubs was in Longford (+ 14.52%), Laois (+23.75%) and Wicklow (+24.37%).
Hotel & Restaurant Sector
The Leinster opens as Dublin’s ‘first’ luxury lifestyle hotel
Boutique Hotelier – 14.03.2024
The Leinster, which purports to be Dublin’s first luxury lifestyle hotel, has opened to the public, complete with a restaurant from renowned chef Jean-Georges Vongerichten. The hotel comprises 55 bedrooms and suites, The Collins Club bar and supper club, a gym and thermal suite experience from the team behind POWER and The O’Dwyer Suite event space. Vongerichten has opened a rooftop restaurant called Jean-Georges at The Leinster, which sees Irish classics blended with fresh French and southeast Asian flavours.
Restaurants Association of Ireland Joins SaveJobs Campaign
Hospitality Ireland – 12.03.2024
The Restaurants Association of Ireland (RAI) has announced it has joined the SaveJobs campaign. The association said the campaign was formed in reaction to a 'lack of government appreciation for the pivotal role played by local, independent businesses in towns and villages across the country.' The SaveJobs campaign is a collective effort by various small and medium-sized enterprise (SME) representative bodies.
Route to Market / Casual Dining Sector
Insomnia Coffee announced as official coffee partner of the GAA/GPA in a five-year partnership
GalwayBayFM – 14.03.2024
The GAA and the Gaelic Players Association joined together with Insomnia Coffee to announce that Ireland’s leading independent coffee shop chain has entered into a 5-year partnership to be the Official Coffee Partner of the GAA/GPA. As Official Coffee Partner, the sponsorship will see Insomnia Coffee commit to working with the GAA/GPA in providing the extra resources needed to help players reach their full potential, both on and off the pitch. Helping to fuel the nation with its national footprint of coffee shops, this partnership for Insomnia, the first of its kind for the company, is considered a perfect fit for the Irish brand. Celebrating 27 years in business, Insomnia has grown from a single location in Galway in 1997 to over 150 coffee shops throughout Ireland and the UK, both on the high street and in partnership with retailers.
Applegreen delivers €550k donation for Barretstown
ShelfLife – 21.03.2024
Children’s charity Barretstown is to receive an additional €550,000 in funding from their partnership with Applegreen, bringing the total committed donation from the Applegreen association to more than €1.5 million. The extra funds will pay for 300 children with cancer or other serious illnesses and their families to experience a life-changing weekend family programme at the Barretstown residential campus in Co Kildare. Last week, Applegreen chief executive Joe Barrett secured a $300,000 (€276,513) donation to Barretstown at the inaugural Blackstone Gives Back Challenge, as part of the Blackstone CEO Conference in New York. New York-based investment manager Blackstone is the main shareholder in Applegreen.