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Welcome to our weekly Bord Bia Ireland Market Foodservice Newsletter.

 

Next Monday, 29th June is a significant date in the Irish foodservice market calendar as much of the industry re-opens to welcome customers through their doors for the first time in over 3 months.  We wish all foodservice customers the very best of luck and understand from speaking to suppliers that the past number of weeks has seen some re-order activity, an encouraging sign of brighter days ahead.

 

The Irish Egg Association has issued a Press Release to coincide with the re-opening, wishing all in the hospitality industry best of luck and highlighting the versatility of eggs as a key component for a range of dishes – ideal for pubs or restaurants catering for staycationers this summer!

 

Finally, just to point out that this is the last of our weekly newsletters for now. We will return to a monthly circulation from July onwards.

 

General Industry News

Consumer sentiment improves for second month after Covid-19 collapse

RTE – 24.06.2020

The KBC Bank consumer sentiment index climbed to 61.6 in June from 52.3 in May, but remains some distance from February's pre-pandemic reading of 85.2. In April the index had dropped to 42.6 in the sharpest month-on-month decline in the survey's 24-year history. The recovery in consumer sentiment mirrors gains in similar indicators for the UK, the US and the euro zone, and suggests the easing of lockdown measures is making consumers feel slightly less negative about the economic outlook, the index compilers said. "Only one in 20 consumers envisages better financial circumstances through the next 12 months whereas one in three expects a deterioration," said Austin Hughes, chief economist at KBC Bank Ireland. Austin Hughes said that fading fears should support stronger spending.

DAA loses €1M per day since St. Patrick’s Day

Business Post - 24.06.2020

DAA, the operator of Dublin and Cork airports, has lost around €1 million a day since St. Patrick's Day. Dalton Philips, its Chief Executive, said he expected that between 750 to 1,000 permanent jobs will be lost at Dublin and Cork airports as a result of Covid-19. He said that wages have had to be cut and the organisation is now being downsized. A number of schemes are being put in place for staff including a career break and a voluntary severance scheme, while all staff members have taken a 20 per cent pay cut, he added.

 

Quick Service Restaurant (QSR) & Pub Sector

Positive measures in programme for government say Vintners

Drinks Industry Ireland – 16.06.2020

The document underpinning the formation of the new Government includes a commitment to additional support measures for the hospitality sector on the back of the current Covid-19 crisis. The LVA stated that it has been campaigning for such assistance for pubs which were the first sector to close en masse across the country, with many pubs expected to be among the last businesses to re-open, while the Federation is encouraged that the new government will establish an SME task force to co-ordinate the response to Covid-19. “The Programme for Government says that a ‘concerted focus’ on SMEs is required along with balanced regional growth,” said VFI Chief Executive Padraig Cribben, “The so-called ‘July Stimulus’ will be a crucial weapon in the new Government’s armory and must be used to support the hospitality sector as we emerge into a new trading reality for our members.

Guinness launches €14m fund to help Irish pubs after Covid-19 lockdown

The Irish Times24.06.2020

The “Raising the Bar” programme is aimed at helping pubs across the State adapt to new post-lockdown trading conditions as part of a $100 million (€88.4 million) global fund by owner Diageo. Although self-motivated – Guinness is a staple of Irish bars the world over – the move will be welcomed by a sector that has been among the hardest hit in an era of strict social distancing. From June 29th, many pubs are set to reopen and operate as restaurants, with guidelines on how they should do so recently published by Fáilte Ireland. Oliver Loomes, Managing Director of Diageo Ireland, said the company’s ambition is to support pubs “in welcoming back customers in the safest possible way, when they are ready to do so”. “The hospitality sector in Ireland requires long-term investment and support to get back up and running. Not only has the financial impact to their business been significant, but they have missed their place at the centre of Ireland’s social fabric,” he said.

 

Hotel & Restaurant Sector

RAI says 50% of Irish restaurants face closure without government aid

Hospitality Ireland – 22.06.2020

This follows the release of a report on the consequences of not supporting the restaurant rector by Jim Power Economics, which states that the accommodation and food services sectors have been seriously damaged by the COVID-19 crisis. "It seems clear that many restaurants will struggle to survive in the challenging environment ahead, but it is equally clear that in order to rebuild the economically vital tourism sector over the next couple of years, it is essential that we have an abundance of high quality restaurants in the country. It is essential that the restaurant sector gets the maximum possible support from government to get the sector through the difficult times ahead. The cost of such support would be far outweighed by the cost of doing nothing, in terms of job losses all over Ireland, closed businesses on the streets of towns, villages and cities all over the country, and the damage to Ireland's tourism offering."

Green light for 273-bedroom hotel in Dublin despite rival’s objection

The Irish Times - 19.06.2020

The city council has granted planning permission to Creekvale Ltd for the hotel at Arran Street East and Little Mary Street, despite opposition from a rival hotel operator Cathedral Leisure to the plan. The council gave the go-ahead to the Creekvale hotel after its planner in the case found that the proposed development would make a notable contribution to the continued rejuvenation of the area and would generate footfall and activity. The council said that the scale of the development was acceptable and would not seriously injure amenities of neighbouring properties. As part of the planning conditions, Creekvale is to pay €914,187 in planning contributions towards public infrastructure and the Luas Cross city line.

 

Casusal Dining & Contract Catering Sectors

DAA loses €1M per day since St. Patrick’s Day

Business Post - 24.06.2020

DAA, the operator of Dublin and Cork airports, has lost around €1 million a day since St. Patrick's Day. Dalton Philips, its Chief Executive, said he expected that between 750 to 1,000 permanent jobs will be lost at Dublin and Cork airports as a result of Covid-19. He said that wages have had to be cut and the organisation is now being downsized. A number of schemes are being put in place for staff including a career break and a voluntary severance scheme, while all staff members have taken a 20 per cent pay cut, he added.

Center Parcs to reopen in Longford on 13 July, but pool to remain shut until later in the month

RTE Business - 23.06.2020

Center Parcs closed the Longford facility in March in response to the global coronavirus pandemic. It will initially open on 13 July without its subtropical swimming pool or spa, but subject to government guidance, both facilities are planned to reopen from Monday 27 July. New measures to keep guests and staff safe include a reduced number of customers on each break as well as an enhanced cleaning regime for accommodation and central areas. It is also making changes to arrival and departure times to allow more time for enhanced cleaning and cashless payments must be used across the village. Bookings and payments for activities can now only be made online, while a new takeaway service is offering contactless delivery to lodges across the facility.