Welcome to the July Edition of Bord Bia's Ireland Market Foodservice Newsletter.
Alas, the sunny weather that came to visit for the June Bank Holiday has well and truly disappeared, with no signs of any return at this stage.... However, irrespective of weather conditions, summertime marches on and it’s great to see such a feast of music concerts, sporting events and festivals taking place all around the country – something on offer for both domestic and international tourists alike and a welcome boost for the hospitality industry.
Monthly Spotlight: Snackification on the Rise
As consumers continue to deal with financial pressures from inflation and everyday cost of living challenges, QSR outlets are responding with smaller and more affordable snacking and on-the-go options. On June 25th, McDonald’s US introduced a limited-run $5 meal deal promotion that led to their busiest Tuesday of the year to date! On a similar basis, Subway introduced “Sidekicks” earlier this year, looking to appeal to guests that want ‘other reasons to visit outside traditional meal times’. Offering smaller menu options at affordable prices can provide a moment of escapism for consumers that are dealing with the strain of external instabilities.
General Industry News
Annual inflation slows to three-year low of 1.5% - flash CSO data
RTE – 01.07.2024
The annual rate of inflation rose at the slowest rate in more than three years in June, increasing by 1.5% year-on-year compared to a rate of 2% in May, a flash estimate of the Harmonised Index of Consumer Prices (HICP) from the Central Statistics Office today. Looking at the components of the flash reading in June, the CSO said that energy prices are estimated to have fallen by 1% in the month and decreased by 5.6% over the 12 months to June. Food prices are estimated to have eased by 0.1% in the last month and increased by 2% in the last year, while transport costs have gone up by 0.8% in the month and risen by 5.2% compared to June last year.
Tourism Projects In Midlands To Receive €32m Boost
Hospitality Ireland – 25.06.2024
Fáilte Ireland has announced the first round of approved investment grants for projects under the EU Just Transition Fund, which are being delivered as part of its Regenerative Tourism and Placemaking Scheme 2023-2026, co-funded by the Government of Ireland and the EU. Twenty-two projects have been approved for a €27.1 million investment under the scheme, which includes walking and cycling trails on former industrial peatlands, and investment in local-authority and state agency tourism and visitor experience projects. Further projects that are still in the evaluation pipeline are expected to be announced in the coming weeks and months. Projects span three development categories: feasibility and masterplans, product design and planning, and delivery and construction.
Quick Service Restaurant (QSR) & Pub Sector
‘Chicken business growing faster than beef’ - Supermac’s chief
Irish Independent Farming – 06.07.2024
The chicken side of the business of the Irish fast food restaurant chain Supermac’s is growing faster than the beef side, said founder Pat McDonagh. “This is something we’ve seen over the last five or six years”. He said the company is a strong advocate for Irish beef and has built a relationship with local suppliers over the years. McDonagh spoke about how important the investment has been to the company. “Talking about burgers, €6.5m to €7m per annum is what we spend. We spend around the same for the hotel and deli business—around €5m to €6m”.
US Fast-Food Chain Wendy’s To Open In Ireland
Hospitality Ireland – 12.07.2024
Wendy’s, the American hamburger brand, has announced the signing of two new development agreements, with franchisees in the Republic of Ireland and Romania. The move supports the brand’s expansion goals to develop hundreds of restaurants across Europe over the next decade. The Republic of Ireland and Romania are new markets for Wendy’s, which plans to open restaurants in both countries beginning in 2025.
Hotel & Restaurant Sector
Dalata Hotel Group Opens First Hotel In Liverpool
Hospitality Ireland – 03.07.2024
Dalata Hotel Group, the largest hotel operator in Ireland, has opened a 268-guest room hotel in the heart of Liverpool City Centre. The four-star Maldron Hotel Liverpool is Dalata Hotel Group’s first hotel in the city and has created 75 jobs. Maldron Hotel Liverpool is the group’s 55th hotel and is one of four new hotels opening this year across the UK, further expanding Dalata’s portfolio in the region, which includes four hotels in Manchester.
High-end steak restaurant chain Hawksmoor for sale
Business Post – 04.07.2024
Hawksmoor, the high-end steak restaurant chain that opened in Dublin last year, has been put up for sale in a deal that could value it at around £100 million, according to reports from London. The Financial Times reports that Hawksmoor’s owners, Will Beckett and Huw Gott, have hired Stephens, an investment bank, to start looking for potential buyers. Both co-founders stayed with the business and went on to grow it to encompass 13 restaurants, including one on College Green in Dublin, as well as one in New York and another in Chicago. They employ over 1,000 people.
Route to Market / Contract Catering Sector
Centra reports a 150% surge in iced coffee sales
ShelfLife– 18.06.2024
Ireland’s iced coffee era has arrived with sales of the beverage up 150% at Centra compared to last year. The trend is being driven by millennial and Gen Z consumers who are seeking a refreshing caffeine boost, with a wide variety of flavours and styles to choose from. This category of consumers are also more likely to purchase other varieties of non-traditional coffee products such as frappés and cold brew. Centra expects iced coffee sales to continue to grow at a substantial rate in the year ahead, as Irish consumers mirror a global trend of increased ice coffee consumption. According to GlobalData, 24% of US consumers said they consumed ice coffee at least once a day in 2023, compared to 17% in 2022.
Servier awards Sodexo dining contract for Arklow offices
The Irish Independent Wicklow People – 21.06.2024
Workplace services provider Sodexo Ireland has won a three-year contract with Servier to provide workplace dining and hospitality. Servier is a leading French independent pharmaceutical company based in Arklow, Co. Wicklow. As part of the contract win, Sodexo has invested in upgrading the dining area to enhance the workplace and employee experience. With a focus on sustainability, Sodexo will be delivering a greater range of fresh produce and plant-based options from its Kitchen Works offer, which is designed to meet the needs of employees in manufacturing environments. .