Welcome to the second weekly edition of Bord Bia's Ireland Market Foodservice Newsletter.
If you haven’t yet had a chance to check in to our daily Covid-19 podcasts, you’ll find the most recent interview on our website here (scroll down). Previous podcasts are all available on this webpage – they are just 10 minutes in duration and include snap shot overviews from our international offices and Dublin based staff.
Our Thinking House staff are producing a series of ‘Future Proofing’ reports, looking at early indicators on consumer and market realities in the face of Covid-19:
Shielding examines how consumers are looking for nutrition to help boost their immunity.
Comfort Cooking outlines how consumers are retrenching to familiar old favourites and forming new habits.
Simply Safe talks about how consumers are looking for security in simplicity, transparency and familiarity.
General Industry News
Economic cost of Covid-19 could top €16 billion – Donohoe
RTE Business – 03.04.2020
The latest Exchequer figures from the Department of Finance show that total tax revenues for the first quarter of 2020 were €800m lower than expectations. This was mainly due to forbearance measures announced by Revenue in response to the outbreak of Covid-19.The Government reported an overall Exchequer deficit of €2.5 billion for the three months to the end of March, a massive increase of 162% on the deficit of €966m the same time last year. The Minister for Finance and Public Expenditure and Reform said the figures give the first indication of how the Covid-19 pandemic will impact the public finances, with tax revenues set to decline steeply over the coming months.
513,350 people claim jobless benefits, wage subsidy
RTE Business – 02.04.2020
Over half a million people were receiving some form of social welfare income support by the end of March, according to the latest Live Register figures from the Central Statistics Office. The CSO said that 283,037 people were receiving the €350 weekly Covid-19 Pandemic Unemployment Payment, introduced on 16 March. This was on top of the seasonally adjusted Live Register total of 207,200, which was up 24,400 on the February figure. In addition, 25,104 people were benefiting from the Government's Temporary Covid-19 Wage Subsidy Scheme that allows struggling employers to ask the state to pay 70% of workers' wages. This brings to 513,350 the number of people claiming jobless benefits or wage subsidies - a fifth of the labour force.
Quick Service Restaurant (QSR) & Pub Sector
Future of GBK in doubt, government risking ‘irreparable’ damage to economy
Propel Info News – 02.04.2020
The future of Gourmet Burger Kitchen (GBK) is in doubt after parent company Famous Brands pulled the plug on its investment. Shareholders were advised the respective governments of the UK and Republic of Ireland had ordered all restaurants in those countries to close indefinitely and until further notice. It was noted while various measures of support were offered to the industry to mitigate the economic impact of this decision, the uncertainty regarding resumption of trading was cause for concern in both markets.
Covid-19 could cost our tourism industry €3.5 billion
Drinks Industry Ireland – 02.04.2020
According to the ITIC, “Assuming Q1 has a -60% impact (March wiped out and no Saint Patrick’s Festival), Q2 sees a -85% impact (when little international business of any serious note happens) and then slow recovery occurs in Q3 (-70%) and Q4 (-50%), the overseas earnings element of the tourism economy for 2020 could amount to as little as €1.58 billion, a Covid-19 cost to Irish tourism of €3.52 billion”.
Hotel & Restaurant Sector
Dalata issues update on how COVID-19 is affecting its operations
Hospitality Ireland – 26.03.2020
Dalata Hotel Group has said that it expects revenue in the quarter ending March 2020 to be down approximately 16% compared to the same period in 2019, due to COVID-19. Dalata said that while it expects its business to continue to be adversely impacted for as long as the current restrictions on movement and travel due to COVID-19 last, it has significant financial headroom with material cash resources of €80 million post disbursement of quarterly rent and interest scheduled to be paid over the next few days. The group said that, in addition, it can avail of further undrawn committed debt facilities of approximately €65 million.
Gourmet Food Parlour
Irish Tatler - 03.04.2020
The team at Gourmet Food Parlour is supplying freezable and reheatable meals for collection and delivery, including family favourites such as shepherd’s pie and spaghetti bolognese. The meals are available for collection at the GFP Catering Kitchen in Santry North Dublin, or local delivery is also available. Recently the GFP cafés in Dún Laoghaire and Santry reopened to offer no-contact takeaway from 10am-5pm daily and delivery from 5pm-8pm.
Route to Market & Casual Dining
Bujo Home Meal Kit
Irish Tatler - 03.04.2020
Grainne O'Keefe, culinary director at BuJo and head chef at Clanbrassil House, has announced a new burger meal kit to satisfy your BuJo cravings. Containing 12 grass-fed beef patties, eight BuJo brioche buns, BuJo burger sauce, 12 slices of cheddar cheese and two dill pickles, this kit gives you everything you need to replicate BJo's classic burger in the comfort of your own home thanks to explicit cooking instructions from Grainne herself. In addition to Co. Dublin, Bujo have recently expanded delivery to some parts of Co. Louth, Meath, Kildare and Wicklow.
BWG Foods delivering to the Heroes
www.linkedin.com - 08.04.2020
BWG Foods has joined forces with a number of their supply partners to ensure those working in COVID-19 Test Centres in Dublin and Galway receive regular deliveries of water, fruit and confectionery to support them during these extraordinary times. The company is making regular deliveries of care packages to members of the Irish Defence Forces, Irish Naval Service, the National Ambulance Service, the Gardai and the HSE staff working at the sites. To date, BWG Foods has delivered more than 20 pallets of water, fruit and sweet treats to the Testing Centres in Galway and Dublin.