July 2019 Irish Foodservice Newsletter

The location for our 2019 Irish Foodservice Seminar taking place on Wednesday, 13^th November has now been confirmed.  We have listened to your feedback and we will be taking it out of Dublin city centre!  The event is taking place in Citywest Hotel Convention Centre – further details confirming venue, speaker line up and agenda to follow over the coming months. 

General Industry News

Warning Irish economy on ‘cusp of overheating’

RTE News – 18.07.2019

The Nevin Economic Research Institute (NERI) has warned that the Irish economy is on the cusp of overheating. But the economic think tank says Brexit is the main risk facing the Irish economy right now. In its Summer 2019 Quarterly Economic Observer, it predicts economic growth in the Republic of Ireland will be higher than previously forecast this year. NERI estimates that in the event of a soft Brexit, GDP will rise 4.6% in 2019 on the back of strong employment growth, as the cyclical upswing continues. But the trade union backed organisation suggests that growth should start to slow after that, slipping to 3.3% next year and between 2.5-3% thereafter.

Number of visitors to Ireland rises but spending falls

Irish Examiner – 12.06.2019

Spend by tourists fell by more than 4% in the first three months of the year despite visitors rising by 5.5%, CSO figures have revealed - as industry bosses admitted growth is not being felt evenly across the country. CEO of Tourism Ireland, Niall Gibbons said the rest of the year would be more challenging for the industry. "We are in constant contact with our tourism partners around the country and we know that growth in overseas tourism is not being felt evenly across the industry. "Following several years of growth, we are very much aware that this year will be more challenging.

Britain remains our most challenging market for the peak season. While we welcome the fact that visitor numbers from Britain are up more than 2% for January-March, we know that currency fluctuations and the Brexit extension continue to cause uncertainty and may affect travel demand for the summer season”.

Manna partners Flipdish in fast food drone delivery plan

Irish Times – 19.06.2019

The drone company that hopes to begin fast-food deliveries later this year has announced a partnership that will give customers access to more than 1,000 restaurants across Ireland. The technology will mean anyone ordering food will have the option to select “drone delivery” when ordering through apps and websites.The drones themselves are expected to fly at over 80km/h and deliver food in under three minutes, a move that could revolutionise the take-away business. Manna, the Irish start-up which has been working its way slowly toward live testing later this year, has teamed up with Flipdish, the company that operates an online delivery platform used by restaurants and takeaways.

Quick Service Restaurant (QSR) Sector & Pub Sector

Supermac’s to spend €40 million on Irish farm produce in 2019

AgriLand – 22.05.2019

The Irish-owned family chain of restaurants – Supermac’s – has announced that it is projecting a spend of €40 million on Irish farm produce in 2019. The Managing Director of Supermac’s, Pat McDonagh, has said: “We are strongly committed to Irish farmers and the farming community in general.” A statement from the company has revealed that it will open a new restaurant in its latest plaza in Kinnegad in two weeks’ time. New store openings are “a big factor” in the increased spend, according to the statement. “Since we introduced our fresh range of beef and chicken products, customers have indicated that quality, taste and traceability are key factors when they are choosing their food”. Supermac’s is Ireland’s largest indigenous quick service restaurant chain. The franchise currently has over 116 outlets across the Republic and Northern Ireland. Supermac’s also operates the Papa John’s Pizza brand and SuperSubs which provide Supermac’s customers with additional healthy options.

JD Wetherspoon buys Carbon nightclub in Galway city

Irish Times – 16.07.2019

Pub operator JD Wetherspoon has acquired Carbon Nightclub in Galway with plans to upgrade the facility with an investment of about €2.5 million. The UK-headquartered company said it will apply for planning permission and a variation to the facility’s licence to develop the site into a pub. The move adds to the company’s Irish estate which encompasses seven pubs and one hotel. Wetherspoon owns five premises in operation in Dublin, including the recently opened Silver Penny, one in Carlow and one in Cork. It expects the Galway transaction to complete in August. Additionally, the company is developing an 89 bedroom hotel on Camden Street, Dublin, and a site in Co Waterford.

Hotel & Restaurant Sector

Hotel sector experienced lowest profit growth in seven years

Hospitality Ireland - 17.07.2019

Audit, tax and business advisory firm Crowe Ireland has released its Annual Hotel Survey, which states that the Irish hotel sector experienced profit growth of 7% in 2018, which is a significant decline from the 12.5% growth achieved in 2017 and the sector's lowest level of profit growth in seven years. The survey, which was compiled from an analysis of Irish hotels' 2018 accounts, reveals that revenue from rooms and food sales grew at 5.9% and 2.6%, respectively, which were the lowest levels recorded in five years. This, it says, highlights the slowdown in revenue growth as a result of increased competition for restaurant and events customers from non-hotel outlets and no increase in occupancy levels attained in 2018.

ILAC Centre owners to add more food units to the property

Irish Times – 15.07.2019

The owners of Dublin’s ILAC Centre are investing in a renovation of the property, which will result in the addition of three new restaurants, a cafe and a new retail unit. Hammerson and Irish Life, joint owners of the shopping centre, will renovate its central square area to add the new outlets which will include a restaurant called Silverleaf and a retail store, Yours Clothing. The group will also reconfigure a unit at one of the shopping centre’s entrances to create a restaurant space split over two levels which could facilitate late-night trading on account of its access to Henry Street.

31 Restaurant Planning Applications Lodged For 100-Metre Radius Area In Dublin

Hospitality Ireland - 23.07.2019

According to Dublin City Council, 31 applications have been lodged over the past three years for planning permission relating to the redevelopment and opening of restaurants in the 100-metre radius between Dublin's George's Street South and the point at which Richmond Street South meets the Grand Canal. Dublin Town Chief Executive Richard Guiney expressed concerns about the proliferation of restaurants and cafés on the south side of Dublin city. Guiney told the Sunday Independent, "Our view in terms of the restaurant trade is that we're probably at saturation point on the south side of the city. We need to be more discerning in terms of the applications of more restaurant use. There is demand for high-quality outlets on the north side, and if people are interested in opening new venues, they should be encouraged to do so there." Guiney added that each new south side restaurant is likely to "take from others".

Casual Dining Sector

Musgrave considers standalone coffee shop chain

www.breakingnews.ie– 10.05.2019

SuperValu owner Musgrave is eyeing the potential roll-out of a standalone coffee shop chain as part of its expansion plans. Musgrave is due to trial its existing Frank and Honest coffee brand - which currently acts as an in-house coffee shop in some SuperValu branches - as a standalone high street shop in Dunboyne, Co Meath before deciding whether a larger roll-out is warranted. It is also looking at a number of other trial sites. The group has already tasted success with its chain of Chipmongers standalone fast food outlets. Outgoing Chief Executive Chris Martin said Musgrave's recent acquisitions - Donnybrook Fair and foodservice business La Rousse Foods - have performed well and said "we continue to explore further acquisition opportunities".

Contract Catering Sector

Sodexo warns over loss of US contracts

Irish Examiner – 09.07.2019

Expansion costs contributed to pre-tax profits at the Irish arm of French catering and foodservices firm Sodexo declining by 25% to €2.76m last year. Newly-filed accounts show that Sodexo Ireland recorded the drop in profits despite its revenues increasing by 9.5% to €103.74m. The company’s Irish-based staff numbers increased by 110 to 1,976, with staff costs rising from €48.95m to €53.6m.

Sodexo Ireland’s business was boosted last year by payments of €3.54m from the Central Bank for providing catering services for the bank’s 2,000 staff at North Wall Quay, Spencer Dock and Sandyford in Dublin.