Welcome to the third weekly edition of Bord Bia's Ireland Market Foodservice Newsletter.
A reminder that a number of the news stories will reflect relevant developments in the UK Foodservice market that may help to stimulate thought starters for others.
This week our Bord Bia Podcasts include interviews with external representatives – scroll down on this webpage to listen to Steve Gillman, EU Food & Agriculture Policy Correspondent. Next up will see Donal Denvir in conversation with Pat Rigney, Chairperson of Drinks Ireland discuss the affect that Covid-19 has had on the alcohol industry.
Latest in our series of ‘Future Proofing’ include the following:
Trace Tech - consumers sharing their data in new ways.
The New Social - consumers embracing technology to fight social distancing.
Stocking In - how grocery shopping evolves from panic to preparedness.
Risky Business - shoppers shying away from produce on open display.
General Industry News
IMF: Irish economy set to return to growth next year
RTE Business – 14.04.2020
The International Monetary Fund is forecasting that Ireland's economy will decline by 6.8% in Gross Domestic Product (GDP) terms this year, as a result of the impact of the Covid-19 pandemic. The figure is contained in the IMF's World Economic Outlook, published today. The IMF believes that unemployment in Ireland will average 12.1% this year and 7.9% in 2021. It predicts that the economy will return to growth in 2021. Globally, the IMF is forecasting that the economy will shrink by 3% this year as a result of Covid-19. It predicts the Eurozone will contract by 7.5%.
Deliveroo expands its services in Ireland to include grocery deliveries
Hospitality Ireland – 09.04.2020
Deliveroo has announced that it is expanding its services in Ireland to include grocery deliveries to help people get the supplies they need during the COVID-19 crisis. The food delivery firm has signed deals to deliver groceries from a number of Spar, Londis, Mace, Fallon & Byrne outlets in Dublin. Deliveroo Ireland General Manager Michael Healy stated, "Alongside our work with restaurants, we have been working hard with off-licence partners such as Spar, Londis and Mace to make it easier for customers to get access to day-to-day food and household items quickly as they limit trips outdoors." The new service will allow people to order items from the grocery stores that have partnered with Deliveroo via the food delivery firm's app.
Quick Service Restaurant (QSR) & Pub Sector
Publicans say insurers are refusing to pay out on 'business interruption' claims
Independent.ie – 19.03.2020
Publicans claim insurers are refusing to pay out on claims for what is called business interruption after they were forced to close due to the Covid-19 crisis. Some publicans say they would have used the pay-outs to fund wages for staff during the closure period. The Licensed Vintners’ Association and the Vintners’ Federation of Ireland (VFI) have slammed insurers who they claim are refusing to honour the ‘business interruption’ cover on their policies. The representative bodies for the publicans called on the Government to immediately engage with the Irish insurance industry on this matter.
KFC reopens 11 restaurants for delivery
www.propelinfonews.com – 15.04.2020
KFC has reopened 11 of its restaurants across the UK for delivery – and is looking at the possibility of reopening further outlets. Staff at KFC are returning on an opt-in basis, and only those who can travel without the use of public transport have been asked to work. The company has implemented a number of measures to observe social distancing including placing tape on the floor to create designated working zones two metres apart and operating with just one person per station and fewer team members. The restaurants are serving a limited menu to prevent the need for team members to cross stations and staff packing orders are wearing gloves.
Hotel & Restaurant Sector
Restaurant food at home? Here's how to get it
The Irish Times – 10.04.2020
Allta restaurant in Dublin has launched a subscription service that will allow customers to sign up for a weekly delivery of food, some of which will require cooking or finishing at home. The boxes cost €55 each, per week, including countrywide delivery by courier, and subscriptions can be for between two and five weeks in duration. Supply is being capped at 100 boxes a week, to allow the chefs to comply with coronavirus health and safety regulations. Only two of the three chefs will be on duty at the same time, and they will each be temperature checked before starting work.
Pret to reopen ten sites for delivery and takeaway
www.propelinfonews.com - 15.04.2020
Pret A Manger is to reopen a select number of its sites on Thursday, 16 April for delivery and takeaway. The business said it would reopen ten shop kitchens located near London hospitals after requests from NHS workers. It’s also reinstated the 50% discount for NHS workers until April. The company said the move would also allow it to restart its supply chain and donate about 7,000 meals a week to homeless charities. The shops will be offering a limited menu, in addition, they will also be selling a selection of essential items, such as milk, butter, and tea. Shops will be open daily from 8am to 2pm. Perspex screens will be fitted to the till counter. Only card payments will be allowed. Customer flow into the shop will be restricted, with no more than six customers at any one time.
Casual Dining & Contract Catering
Camile halts rent payments to safeguard its business
Hospitality Ireland - 06.04.2020
Thai restaurant chain Camile has told its landlords that it will halt the next rent payments due on its 31 outlets in Ireland and the UK to safeguard its business. Camile is continuing to deliver food to customers following the closure of its restaurants' dining in, takeaway and collection services due to the COVID-19 crisis, however, the company's revenue has dropped 25%.
Sodexo says H2 sales may plunge 26% due to COVID-19 crisis
Hospitality Ireland - 13.04.2020
French catering and food services group Sodexo has said that its second-half revenue could tumble by as much as 26% due to government measures to contain the coronavirus, which will likely batter underlying operating income. The revenue slide in the second half could be between €2.4 billion and €2.8 billion, Sodexo said, adding that the impact on underlying operating profit will probably be a quarter of the revenue hit or as much as €700 million. Sodexo, which is one of the world's largest catering groups alongside Britain's Compass, reported revenue of €11.7 billion for the six months to the end of February, up 3.2% from the previous year.