Welcome to the February edition of Bord Bia's Ireland Market Foodservice Newsletter.
CATEX 2019 returns to the RDS, Dublin from Tuesday 26th – Thursday 28th February 2019. With over 11,000 visitors expected to attend, it’s one of the most eagerly anticipated industry events of the year. A biennial event, CATEX 2019 is the prime opportunity for visitors to meet with over 200 suppliers and manufacturers, watch hundreds of chefs, baristas and drink specialists compete, and network with thousands of industry colleagues. Indicating that the demand and anticipation for CATEX is high, exhibitor space is now sold out, with a waiting list in place, and visitor pre-show registrations are well ahead of previous years. For the full schedule of events, and information on how to register, visit www.catexexhibition.com
General Industry News
Overseas visitors to Ireland reached record high in 2018
Irish Examiner – 28.01.2019
The number of overseas visitors to Ireland reached a record 10.6 million last year, an increase of 6.9% over 2017. British residents accounted for a third of the total, despite uncertainty over Brexit. Niall Gibbons, CEO of Tourism Ireland, said: “Today’s figures confirm that 2018 was another record year for overseas tourism to Ireland, with more than 10.6 million overseas arrivals – an increase of +6.9%, or 684,200 additional overseas arrivals, when compared with 2017. “We’ve seen excellent results from North America in 2018 – with almost 2.4 million visitors, up 3.4% on 2017." Mr Gibbons said that increases in direct air access, plus market diversification strategy, have been key factors in the growth.
Dublin Airport Reports Record January Passenger Numbers
Hospitality Ireland – 20.02.2019
Just under 2.1 million passengers travelled through Dublin Airport in January, representing a 5% rise on figures for the same month last year and making January of 2019 the first January ever that has seen passenger numbers surpass two million at the capital's airport. The number of passengers travelling to and from continental Europe grew by 8% to more than a million, while the number of people travelling to and from North America rose by 14% to almost 211,000. Other international traffic, primarily between Dublin and the Middle East, North Africa and the Pacific Asia region, increased 4% to almost 85,000 passengers, while the number of passengers travelling to and from the UK remained static at close to 745,000.
Quick Service Restaurant (QSR) Sector
Four Star Pizza reports 8% revenue rise driven by online sales, eyes ten openings and expansion across Irish sea
www.propelinfo.com– 15.02.2019
Ireland-based Four Star Pizza, which operates 55 outlets, including 14 in Northern Ireland, has reported an 8% rise in revenue, largely driven by a 31% spike in online sales. The pizza chain said it has planned a portfolio of 65 branches across the island of Ireland by the end of 2019, with a potential move into Great Britain.
Supermac's chief gets green light to build Obama-style plaza in Longford
Irish Independent– 14.02.2019
Supermac's chief Pat McDonagh has gotten the green light to build an Obama-style plaza in Longford. Longford County Council have granted planning permission for the multi-million euro development on the Ballinalee road, off the N4. Up to 100 new jobs are expected to be created as a result of the development, according the fast food chain's founder. Last month, Supermac's announced that 200 new roles were to be created with the opening of three new outlets in Wexford, Waterford and Kinnegad, Westmeath. Construction has already begun in Kinnegad and building is due to begin in Wexford, the first Supermac’s in the county, and in Waterford. Three other stores are in the pipeline in Letterkenny, Ennis and Portlaoise.
Pub Sector
Staff Shortages Continue To Be Problematic For Irish Pubs
Hospitality Ireland – 30.01.2019
Labour shortages, particularly in relation to staff skilled in the area of food preparation, are continuing to be a problem for licensed trade venues around Ireland. Speaking to Drinks Industry Ireland, Licensed Vintners Association (LVA) Chief Executive Donall O'Keeffe asserted, "Chefs, for example, are very very hard to find. The hospitality space has exploded and everyone is trying to fish out of the same pool, so it’s very difficult to source the right people." O'Keeffe added, "But in many ways we’re dealing with a much better quality of problem than we had five to 10 years ago. We’re actively recruiting from a bigger labour pool of part-timers, so it’s one of the problems of success."
Hotel & Restaurant Sector
Hotel revenue per room 'positive' despite VAT headwind – Davy
Irish Independent – 20.02.2019
Hotel revenue per available room (RevPAR) in Ireland has registered a "positive" start to 2019, according to analysts at Davy Stockbrokers. Hotels in both Dublin and regional Ireland have reported positive RevPARs in January, despite a 4.5pc VAT headwind. The Government’s decision in last October’s budget to raise the VAT rate for the hospitality industry to 13.5pc from 9pc came into effect on 1 January. Dublin RevPAR grew 0.9pc in January, with occupancy down 0.8 percentage points, and average daily rate up 2.1pc. In regional Ireland, RevPAR increased 4.9pc in January, with occupancy up 0.5 percentage points and average daily rate up 3.9pc.
Delivery date needed for €80m Cork events centre, says hotel industry
Irish Times – 18.02.2019
Cork needs a definite delivery date for the planned €80 million events centre if the city’s hotel sector is to capitalize on the 1,500 hotel rooms scheduled to come on stream over the coming years, the Cork Branch of the Irish Hotels Federation (IHF) has revealed. According to Neil Grant, Chairman of the Cork branch of the IHF, “if a big convention of 3,000 people was brought to Cork in November, it would justify the development of the additional bedrooms and would sustain growth of the sector, but if it doesn’t, it will be detrimental to the industry”. Tánaiste Simon Coveney has expressed confidence the project will come to fruition despite costs spiralling from an initial estimate of €53 million to €80 million.
Irish private equity rescue for Patisserie Valerie
Irish Times – 14.02.2019
A part of the beleaguered café chain owner Patisserie Holdings has been rescued out of administration by an Irish private equity company with the help of its new management. Dublin-based Causeway Capital Partners acquired the assets and business of Patisserie Valerie in a deal that cost £13 million (€14.7 million), a statement to the stock exchange said. Causeway who already controls more than 65 outlets of BB’s bakers and baristas across Britain and Ireland, said that 96 of the company’s Patisserie Valerie stores in Britain and Northern Ireland would remain open.
Contract Catering
Sodexo names new Head of Services
Irish Times – 06.02.2018
Service provider Sodexo has appointed Julie Ennis as the new Managing Director of Corporate Services. In her new role, Ms Ennis will become responsible for managing Sodexo’s corporate services in Ireland and Northern Ireland. The appointment means that Margot Slattery will now become the Country President for Sodexo on a full time basis, having previously had a dual role as Head of Corporate Services. Sodexo employs 3,700 people on 230 sites in Ireland. It’s Irish and Northern Irish business had a combined turnover of €141 million in 2018.
Route to Market
Classic Drinks acquired by Pallas Foods
www.fft.ie– 14.02.2019
Nationwide wholesaler Pallas Foods has announced the acquisition of specialist wine, spirits and beer distributor Classic Drinks. The deal has been concluded for an undisclosed sum. Pallas Foods is a wholly owned subsidiary of American-based foodservice multinational Sysco Corporation and employs over 1,300 people in Ireland alone. Classic Drinks generated consolidated sales of €42m in the year ending 30th June 2018, and currently employs 47 people. Commenting, Peter Jackson, CEO, Pallas Foods, said: “As an ambitious and growing business, we are excited to be announcing our acquisition of Classic Drinks. The company has a strong track record in supplying quality products to customers across the foodservice and hospitality sectors. This acquisition will significantly improve Pallas’ alcoholic beverage offering throughout Ireland, and further strengthen our position in the foodservice market”.
Henderson Foodservice Acquires Foodco
www.fft.ie– 06.02.2019
Henderson Foodservice has confirmed the acquisition of rival wholesaler Foodco. Henderson Foodservice is one of the largest employers in Northern Ireland and part of the wider Henderson Group. Established in 1985, Foodco is an independently owned foodservice company, with distribution depots in Lisburn, Co. Antrim, and Ashbourne, Co. Meath. The acquisition is in line with Henderson Foodservice’s future strategy and expansion which includes a £25m investment in new facilities, staff and business development. In July 2018, the company acquired BD Foods.
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