Welcome to the August Edition of Bord Bia's Ireland Market Foodservice Newsletter
A recent interview with Eoghan O’Mara Walsh, CEO of the Irish Tourist Industry Confederation (ITIC) discussed the need for the Irish market to diversify from an over-dependence on the North American market, as the weakening of the dollar and tariff fears could further soften US tourist numbers in 2026. It comes as Eurostat figures from June 2025 confirm Ireland as the second most expensive country in the EU. Mr O’Mara Walsh also speaks to the need for removing the Dublin airport passenger cap, given the importance of maximising access for all overseas tourists.
Monthly Spotlight: Chipotle turns to AI to engage with younger customers
To coincide with National Avocado Day (July 31st), American multinational restaurant chain Chipotle launched an interactive campaign with Snapchat. Using an AR lens that recognizes ‘real’ avocados, the campaign rewards 1,000 fans daily with free guacamole during the promotion. It’s an opportunity for Chipotle to reinforce their commitment to using ‘real’ ingredients in their restaurants and delivering hand-mashed guacamole, while also recognising the importance of using the latest in technology and AI developments to engage with their younger customers where they are at.
General Industry News
Government considers delaying hospitality VAT reduction
RTE Business - 24.07.2025
The Government may defer a €1 billion VAT cut for the hospitality sector to July 2026 to allow greater scope for tax relief in next year's budget. The proposed reduction from 13.5% to 9%, previously applied during Covid, is under review, with the possibility of potentially excluding accommodation from the reduced rate. No final decision has been made. Concerns include cost, limited consumer benefit, and regional disparities. Broader tax measures, including PRSI changes, are also being explored. Industry groups warn of widespread vulnerability, especially in rural areas. Minister Collins supports targeted supports for hospitality, SMEs, and vulnerable groups over a blanket VAT reduction.
Bank of Ireland revises economic forecasts upwards
RTE Business – 17.07.2025
Bank of Ireland now projects GDP growth of 8.1% in 2025, up from 3.5%, driven by surging exports, multinational output, and strong domestic demand. Modified Domestic Demand is forecast to rise 2.9%, with employment up 2.6%. Consumer and public spending are outperforming expectations, while investment is set to rebound. However, construction remains constrained by cost inflation and planning delays. The outlook depends on US tariffs staying at 10%, with pharmaceuticals exempt. Any escalation could prompt a downgrade. Despite uncertainty, household savings are rising and spending remains resilient, supported by robust job creation and positive sentiment across key sectors.
Quick Service Restaurant (QSR) & Pub Sector
Over 2,100 pub closures in last 20 years, report finds
www.rte.ie – 14.07.2025
A new report from the Drinks Industry Group of Ireland (DIGI) reveals over 2,100 pub closures since 2005, a 25% decline, with rural counties worst affected. Economist Prof. Anthony Foley warns that without urgent Government intervention, including a 10% excise duty cut, up to 1,000 more pubs could close within a decade. DIGI stresses that pubs are vital social and tourism hubs, yet face mounting pressure from high excise and VAT rates. With Irish consumption of alcohol now at EU average levels, the industry argues that fiscal relief is essential to protect the cultural and economic role of Ireland’s pubs.
One of Dublin’s largest bar complexes is quietly on the market
The Currency – 16.07.2025
One of Dublin’s largest bar and dining complexes, operated by the Market Bar Group, is quietly for sale. Located in the Fade Street area, the group includes six venues: Market Bar, Black Market, Chelsea Drug Store, Chelsea Basement, Wsky Bar, and Idlewild, with a combined capacity of nearly 900. Estate agents Lisney are seeking bids for the leasehold interests. In 2024, the group generated over €4 million in sales and nearly €200,000 in profit. Mercroft Taverns, the main company behind the group, is seeking strategic exit or investment opportunities in Ireland’s evolving hospitality and pub sector.
Hotel & Restaurant Sector
Dalata agrees €1.4bn takeover deal
www.propelinfo.com – 15.07.2025
Dalata Hotel Group, Ireland’s largest hotel operator, has agreed to a €1.4bn takeover by a Scandinavian consortium led by Eiendomsspar and Pandox, offering €6.45 per share, a 35.5% premium. Dalata, which runs 55 hotels under the Maldron and Clayton brands, will retain its Dublin HQ and staff, continuing expansion into Europe. The deal follows a strategic review launched in March. Pandox and Eiendomsspar bring extensive hotel portfolios across Northern Europe. CEO Dermot Crowley sees the acquisition as a growth catalyst, enhancing Dalata’s international presence while maintaining its customer and employee focus.
Big Mamma Group Opens first Irish Osteria
www.thetaste.ie – 10.07.2025
Big Mamma Group, the acclaimed European restaurant brand, will open Gloria, an “elegant and bold Italian osteria of the 1970s”, at 41 Westmoreland Street, Dublin 1 by late 2025. The 180 seat venue will serve fully homemade Italian dishes using ingredients from 170 artisan producers, including aged Parmigiano Reggiano and creamy Puglian burrata. A 22-seat private dining room adds exclusivity. Co-Managing Director Enrico Pireddu praised Dublin’s vibrant food culture. Known for stylish, high energy restaurants in Paris, London, and Barcelona, Big Mamma brings its signature blend of authentic cuisine, theatrical design, and warm hospitality to Ireland for the first time.
Casual Dining / Technology Sector
Maxol announces acquisition of three service stations in Dublin
www.shelflife.ie – 14.07.2025
Maxol Group has received CCPC approval to acquire three Dublin forecourt sites: Spawell, Coolquay, and Crosslands, expanding its Irish network to 248. Part of a €175 million strategy, each site will be retrofitted with Maxol Deli and ROSA Coffee, enhancing Ireland’s food-to-go sector. Following 8 acquisitions and 14 redevelopments in 2024, Maxol continues investing in high potential, community-based locations. Over 40% of profits now come from non-fuel services, including convenience food and drink.
82% of Irish consumers report cutting back on restaurant spending
Hospitality Ireland – 16.07.2025
A new Square survey reveals that 63% of consumers are dining out less, and 82% have reduced restaurant spending, putting Irish restaurateurs under pressure. Rising costs, especially rent, utilities, and supplies are top concerns. To cope, 48% of businesses are renegotiating with suppliers, 42% are adopting energy-saving measures, and 30% are automating systems to boost efficiency. While 62% plan to implement AI, 21% say tech adoption is a major challenge. Square’s CEO notes that even small tech upgrades, like automating rotas or streamlining payments, can significantly improve operational resilience.