Welcome to the fourth weekly edition of Bord Bia's Ireland Market Foodservice Newsletter.
On Wednesday, 6th May at 11AM I will be hosting a 40 minute webinar providing an overview of the effect that Covid-19 has had on the Irish foodservice market since Government restrictions and social distancing measures were put in place.
It will examine innovations from foodservice operators and distributors on the domestic market, and likely further developments in the short to medium term. It will also share examples of Irish food and drink producers that have had to adapt their businesses in the face of lost revenue from hospitality customers.
This webinar is open to Irish food and drink producers and registrations is available via our website here.
Latest in our series of ‘Future Proofing’ Indicator reports this week include the following:
P to P Purchasing – how person to person contact evolves in the digital retail world
Proxy Purchasing – how shopping for the cocooned changes our behaviour
Mood Food – how we are choosing food that makes us feel good
Smaller World – how kid’s disrupted routines are influencing consumption
General Industry News
Irish GDP to fall by 10.5% this year due to Covid-19
RTE Business – 21.04.2020
The Minister for Finance and for Public Expenditure and Reform has said that both the Irish and global economic landscape have fundamentally changed due to the outbreak of Covid-19. Paschal Donohoe said that Irish GDP is set to fall by 10.5% this year with the labour market bearing the brunt of the economic shock of the coronavirus outbreak. He said the country will go from a state of near full employment to a peak unemployment rate of 22% in the second quarter, before averaging out at 13.9% for the year. Approximately 220,000 jobs will be lost. Mr Donohoe published the Government's Stability Programme Update 2020 (SPU) This sets out a macroeconomic and fiscal scenario for 2020 and 2021 and which now incorporates the impact of the Covid-19 pandemic.
Coronavirus: Gatherings of over 5,000 people to be banned until September
The Irish Times – 21.04.2020
Government sources said local authorities will be told not to grant licences for large events in this period due to the coronavirus crisis. It is understood the decision was taken by Ministers at a Cabinet meeting on Tuesday morning. The decision will mean major concerts and other events will have to be cancelled or rearranged. Although sporting events are not covered by licences they are also likely to be cancelled in the coming weeks. Separately Taoiseach Leo Varadkar has said he hopes to be able to announce the lifting of some restrictions on May 5th. However, he said he did not want to give false assurances and it would depend on the rate of virus, capacity in hospitals and testing and tracing. Mr Varadkar said the Government wanted to open up areas of the most benefit to the economy and society, but the least risk.
Quick Service Restaurant (QSR) & Pub Sector
Supermac's to reopen for limited food services
RTE News – 22.04.2020
The fast food chain announced the move on social media this morning. It will provide delivery, drive-through and a drive-and-collect system at a number of its outlets across the country. Initially, the service will be rolled out at three Galway outlets and will then be extended to nine others and its drive-throughs. Supermac's closed its 116 restaurants last month over social distancing concerns. But in recent weeks more and more outlets have been offering a delivery and take-away service. Supermac's is a huge buyer of Irish food produce and the news that it is to re-open will be welcome in the food production sector. It spends around €40m every year on Irish food, with around a quarter of that on fresh chicken, which is a vital outlet for Irish chicken farmers.
No 2020 pub re-opening – “a nightmare scenario”
Drinks Industry Ireland – 20.04.2020
With international experts estimating that the Coronavirus vaccine, if created at all, will not be available for 12 to 18 months, the Minister indicated that this might require closing pubs until 2021. “That is the absolute nightmare scenario for the entire pub sector,” stated LVA Chief Executive Donall O’Keeffe, “If that happens then most pub businesses in this country will be out of business for good.The LVA and its members will absolutely support whatever measures are deemed necessary in the interests of public health as we have done from the beginning of this crisis, but if closing pubs until 2021 is going to be necessary, then it is essential that a pub-specific support scheme is introduced. Otherwise there won’t be a pub industry in this country by the time a vaccine is found”.
Hotel & Restaurant Sector
Nando’s reopens kitchens at seven sites for NHS workers
www.propelinfonews.com – 23.04.2020
Nando's has reopened seven of its kitchens to help feed NHS workers. The company has reopened four in London, two in Manchester and one in Dublin and workers will operate behind closed doors exclusively for NHS staff and local charities. Each restaurant will work under strict health and safety measures while maintaining social distancing, the company said. A spokeswoman said: “If this controlled reopening proves successful, then we hope to be able to continue to deliver food to our No Chuckin' Our Chicken charities and NHS teams as the trial expands." The company said there was no plans yet to offer delivery to the general public.
Leon still planning to expand in Ireland despite COVID-19 disruptions
Hospitality Ireland - 31.03.2020
Healthy fast food chain Leon is still planning to expand in Ireland despite the business disruptions that the COVID-19 crisis is causing for the hospitality sector. Leon currently plans to open 20 restaurants in Ireland by 2023. At present, the company has two outlets in Ireland, one of which is at 17 Crown Alley in Dublin's Temple Bar area, the other of which is at 7 Millennium Walkway in Dublin 1. The Irish Independent quotes Leon Ireland Managing Director Stuart Fitzgerald as saying, "The COVID-19 crisis may extend the business plan out by six to 12 months, but I don't see a fundamental change. I think, given our price point, and given that we are a convenient and healthy offering, there will be as much, if not more, demand for it once the crisis is over."
Casual Dining
Three Insomnia coffee shops open across Dublin with limited services
Independent.ie - 18.04.2020
Coffee chain Insomnia has opened three of its coffee shops across Dublin as a takeaway service as part of phased re-opening. Despite coffee shops not being on the Government’s list of essential services which are allowed to stay open during the lockdown, the coffee shop franchise re-opened its Dun Laoghaire, Portmarnock and Blackrock shops. However, keeping with Government restrictions, the coffee shops will be operating with a takeaway service only. In a statement to Independent.ie, a spokesperson for the franchise said: "As a registered food business with ancillary takeaway, we are permitted under Government guidelines to operate as a takeaway."
Costa UK to re-open four sites
www.propelinfonews.ie - 23.04.2020
Costa Coffee, which is owned by Coca-Cola, is to become the latest hospitality brand to announce it will re-open a handful of its sites. The company has announced it will open four sites, including two drive-thru units, with opening hours set to be 8am to 4pm. The company said: “A massive thank you to the team members that have volunteered to work – helping support key workers. Our priority remains the safety of our teams and customers.” Costa has more than 2,300 branches in the UK but all have been closed since 23 March when the country went into lock-down.