WELCOME TO THE FEBRUARY EDITION OF BORD BIA'S IRELAND MARKET FOODSERVICE NEWSLETTER.
Next month a number of Bord Bia client companies will be exhibiting at Internorga in Hamburg. Internorga describes itself as ‘The leading Trade Fair for Restaurant and Hospitality Industry’ and takes place from March 8th – March 12th. For more information on the show and supporting Foodservice Forum visit this website. For details of the seven Irish food exhibitors, visit https://www.irishfoodanddrink.com/internorga-2024/
MONTHLY SPOTLIGHT: WINNING THROUGH DIGITAL
This week McDonald’s announced global like-for-like sales up 3.4% in it’s fourth quarter. Chris Kempczinski, their global CEO also confirmed that digital engagement for their UK business was at an ‘all time high’ and well positioned to get the balance right between price and traffic growth. The company said sales to loyalty members reached over $20bn in 2023, up 45% versus 2022 levels. Kempczinski said: “As we continue to attract millions of new loyalty members, we can get even smarter with our pricing methodology and tailor our digital offers to our fans, making them even more personalised.” In the UK, McDonald’s boosted digital engagement to an all-time high for the market and generated four million active monthly customers.
GENERAL INDUSTRY NEWS
Ireland’s economy to outpace Euro area, UK and US this year, EY Ireland analysis finds
Business Post – 08.02.2024
Ireland’s economy has been forecast to outperform the Euro area, the UK and US in 2024, a new analysis by EY Ireland has said. The economic preview for the year by the firm said the country is expected to record continued job gains as inflation moderates and the interest rate cycle turns. Ireland’s Gross Domestic Product (GDP) has been forecast to rise by 2.2 per cent in 2024 and a further 3.8 per cent in 2025. Over the next two years, Northern Ireland’s economy is forecast to expand by 0.7 per cent this year and a further 1.6 per cent in 2025. The GDP forecast means Ireland is in line to outperform many economies around the world in 2024, including the Euro area (0.9 per cent), the UK (0.9 per cent) and just above projections for the United States (2.1 per cent). Further analysis by EY Ireland said the Ireland’s labour market will continue to grow over the coming two years, with employment expanding by 1.6 per cent in 2024 and 1.8 per cent in 2025.
US tourism ‘vital’ to future of Irish hotels due to higher spending levels
Business Post – 15.01.2024
The value of overseas visitors to Ireland in 2024 can grow beyond the €5.3 billion recorded this year, but accommodation and airport capacity constraints could put the brakes on expansion, the umbrella group representing the sector has warned. The assessment from the Irish Tourism Industry Confederation (ITIC) suggests that the sector, which employed 254,000 people this year, continues to be robust despite the cost-of-living crisis at home and geopolitical events taking place overseas. The umbrella group suggested that growth of 5 per cent in real terms was possible next year.
QUICK SERVICE RESTAURANT (QSR) & PUB SECTOR
Tolteca To Close Dublin Restaurants
Hospitality Ireland – 29.01.2024
Tolteca, the Mexican food chain, announced last week that it will be closing all of its Dublin restaurants, due to ‘challenging trading conditions’. The establishment founded by Tony Comaskey in 2011 had four restaurants: in Baggot Street, Suffolk Street, Rathmines and Montrose. The restaurant was well known for its burritos, tacos, fajitas and salads.
Irish People Embracing Low- And No-Alcohol Drinks
Hospitality Ireland – 19.01.2024
A third (33%) of Irish consumers have, in the past year, increased the frequency with which they drink low- and no-alcohol alternatives (no/low) – outpacing any other category – when they are out in bars, pubs, restaurants, and other venues. This is according to CGA by NIQ’s On-Premise User Survey (OPUS) research. The research shows that health continues to be an ever-growing motivation in terms of lifestyle choices, with three quarters of consumers claiming to lead a healthy lifestyle.
HOTEL & RESTAURANT SECTOR
Michelin awards 2024: A new two star for Ireland and three additional one stars
Irish Times – 05.02.2024
It was a triumphant win for Vincent Crepel as he landed two Michelin stars for Terre restaurant at Castlemartyr Resort in Cork at the 2024 awards ceremony in Manchester on Monday. Also sharing the glory in a nationwide sprinkling of stars were D’Olier Street in Dublin, The Bishop’s Buttery at Cashel Palace Hotel in Cashel and Homestead Cottage in Doolin, which all landed one Michelin star.
The Restaurants Association of Ireland Warns 'Industry in Crisis'
Hospitality Ireland – 15.01.2024
The Restaurants Association of Ireland (RAI) has issued a statement warning that the industry is 'currently in crisis’. According to the association, several independent food-led businesses are being forced to close their doors for good every day. The Restaurants Association of Ireland issued a five-point plan to advise the government on what needs to be done help the sector. The association warns action must be taken to avoid an otherwise 'inevitable tsunami' of restaurant and café closures in 2024.
CONTRACT CATERING SECTOR
Supermacs and Pret a Manger to come to Dublin Airport in overhaul of food and drink offering
Business Post – 10.01.2024
Dublin Airport has announced plans for 20 new and improved bars, cafes and restaurants for passengers across its two terminals. There are now a total of 42 different outlets available across the two terminals. The latest transformation will be carried out in partnership with KSG, a foodservices and hospitality specialist, and the operator Lagardère Travel Retail over the course of 2024. Among the new brands arriving at Dublin Airport over the coming months will be Supermacs, Insomnia Coffee and Pret a Manger, while existing outlets such as Butler's Chocolate Cafe, Burger King and Jump Juice are all set to add to their existing presence in the terminals with enhanced outlets both airside and landside.
Compass buys caterer CH&CO for £475m in its biggest European deal to date
RTE – 22.01.2024
British catering company Compass Group has agreed to buy rival CH&CO in a deal valuing the Royal Opera House caterer at £475m, including debt, in a bid to grow its UK and Ireland business. Compass, the world's largest catering group, has been looking to make bolt-on acquisitions as it bounces back from the pandemic. CH&CO, backed by private equity group Equistone, provides catering services to businesses, universities, sports and other events. Some of the venues it serves include London's Royal Opera House, Abbey Road Studios and the Royal Botanic Gardens at Kew in London. It also owns the Gather & Gather hospitality catering brand.