Welcome to the August Edition of Bord Bia's Ireland Market Foodservice Newsletter.
Summer marches on at pace and Back to School is just around the corner! A reminder that this year’s Foodservice Seminar is taking place on November 13th at the Johnstown House Hotel, with further information and the ability to register online following in next month’s newsletter.
Another date for the diary in November is Food Maters Live which takes place for the first time in Dublin in Croke Park on Tuesday 5th & Wednesday 6th November. This event focuses on ingredient and product innovation, supported by evidence-based research and sharing of market leading insights.
Further information available online here.
Monthly Spotlight: Remote Working & City Centre Trading
A recent article in the Sunday Business Post (August 11th) looked at how three years on, the pandemic is still shaping the dynamics of Ireland’s cities. A number of independent city centre operators have recently announced closure plans, including Perch Café, located at the iconic kiosk on Leeson Street Lower. Many traders claim that Mondays and Fridays are still only operating at circa 50-60% of pre-pandemic traffic levels, with employees on average working three days a week in the office and two from home. On the flip side, those with outlets in suburban areas are re-focusing their efforts on these locations, as remote working offers a much-needed boost in footfall throughout the week.
General Industry News
Tax receipts to end of July up nearly 10% on same period last year
RTE – 07.08.2024
The amount of tax collected by the State between January and the end of July was up 9.5% on the same period last year, driven by income tax, corporation tax, VAT and excise duty. Latest Exchequer Returns show that in July alone €7.6 billion in tax was received, up 10.4% or €700m on the same month last year. Speaking to RTE News, the Minister for Finance described the July Exchequer returns as a really strong performance, which shows the resilience of the Irish economy and provides strong prospects for the delivery of the Budget on October 1st.
Annual rate of inflation steady at 1.5% in July - CSO flash reading
RTE – 31.07.2024
The latest "flash" estimate of inflation from the Central Statistics Office shows that the annual rate came in at 1.5% in the year to July, unchanged from a more than three-year low in June. The rate of 1.5% compares with an annual increase of 2.5% in the Harmonised Index of Consumer Prices (HICP) for the euro zone in the same period. The HICP - excluding energy and unprocessed food prices - is estimated to have increased by 2.3% since July of last year. The CSO also said that food prices are estimated to be unchanged in the last month and are up by 1.9% in the last 12 months. But transport costs have gone up by 2% in the month and risen by 5.9% in the 12 months to July 2024, it added.
Quick Service Restaurant (QSR) & Pub Sector
McDonald's sales fall globally for first time in more than three years
RTE Business – 30.07.2024
McDonald's has reported a surprise drop in sales worldwide, its first decline in 13 quarters, as deal-seeking consumers shy away from higher priced menu items, including Big Macs. Persistent inflation has forced lower-income consumers to shift to more affordable food options at home. That has led fast food chains such as McDonald's, Burger King, Wendy's and Taco Bell to lean on value meals to spark customer traffic. McDonald's shares, which are down 15% this year, rose nearly 4% after company executives said the $5 meal deal launched late in June sold above expectations. They said the company was working with franchisees in a bid to extend it beyond August.
Irish pubs see 4.6% growth in drinks sales – CGA
Drinks Industry Ireland – 26.07.2024
Exclusive new research from CGA by NIQ reveals strong growth in drinks sales in Ireland pubs in the last year—fuelled by major shifts in people’s habits including a desire for earlier visits. CGA’s On Premise Measurement (OPM) service indicates that drinks sales in pubs by value in the Republic and Northern Ireland have risen by 4.6% in the last 12 months – well ahead of the current rate of inflation. Pubs have taken a sizable share of sales from hotels in the last year, with stout behind much of the growth. The positive trend demonstrates the enduring appeal of Ireland’s pubs and an upswing in spending confidence.
Hotel & Restaurant Sector
Bolands Mills in Dublin Welcomes New Food Businesses
Hospitality Ireland – 18.07.2024
CBRE has announced the first lettings at Bolands Mills, which includes a number of food establishments. Eighty percent of the units are now let at Bolands Mills, the mixed-use destination made possible by Google. They will open on a phased basis between late 2024 and early 2025. The Animal Collective will inaugurate a 3,600 square foot bar in Bolands Mills' Unit 3 and a 6,000 square foot food hall in Unit 4. Grindstone Speciality Coffee will be serving coffee and small producers’ products on the ground floor of the Barge House.
Irish restaurant closures approach 600 after VAT hike
Irish Times – 09.08.2024
Almost 600 restaurants have closed since the Government hiked their VAT bills by 50 per cent last September, an industry lobby group calculates. Government last year ended a special 9 per cent VAT rate for hospitality businesses, increasing the tax to 13.5 per cent. According to the industry lobby group, Restaurants Association of Ireland (RAI), 577 restaurants have closed in the 11 months since September 2023 when VAT increased. RAI chief executive Adrian Cummins warned that many food businesses were holding on by a thread, hoping that a busy summer would allow them to survive.
Casual Dining / Contract Catering Sector
The Maxol Group Acquires 7 New Sites In Leinster
Checkout– 15.07.2024
The Maxol Group is to acquire seven forecourt and convenience stores from Naas Fuels Limited, bringing the group’s Irish network to 252 locations. The multimillion-euro investment, approved by the CCPC, was announced by the chief executive of the group, Brian Donaldson. It is the latest in Maxol’s €100 million 2023-27 investment strategy for growth, which was announced last year and will expand the retailer’s portfolio in Leinster. The family-owned Irish company has acquired seven forecourt sites from Naas Fuels Limited, trading under the Circle K brand, the convenience retail stores that operate under the Gala brand.
Supermac’s makes airport debut, looking at expanding into UK
Propel – 18.06.2024
Irish fast food brand Supermac’s has opened its first site in an airport and is looking at expanding into the UK. The brand, which operates circa 120 sites across Ireland, has opened in Dublin airport’s Terminal 2 landside building alongside Papa John’s, in partnership with Lagardère Travel Retail. It comes after Supermac’s victory against McDonald’s over the “Big Mac” trademark. The highest court in the EU ruled in Supermac’s favour over a dispute that has stretched back years over the use of the term “Big Mac”. Supermac’s has had plans to expand outside of Ireland for years but had to put the plans on the backburner.