Welcome to the October edition of Bord Bia's Ireland Market Foodservice Newsletter.
Delighted to confirm that details regarding our virtual 2020 Irish Foodservice Seminar are now available on our website here. We will be live streaming from the RDS Dublin from 10AM-12:30PM on the morning of Wednesday, 11th November. Findings from our 2020 Irish Foodservice Market Insights report will be presented and we’re planning a panel discussion with representatives from Sprout; Camile Thai; Just Eat & Le Patissier.
Detailed agenda and the ability to register your attendance via this link:
General Industry News
Jobs hit harder by pandemic than economy
Business Post– 07.10.2020
The Central Bank has said the economy has fared better than forecast during the pandemic, but the impact on jobs has been worse, according to its latest quarterly bulletin. The bank warns recovery will remain uneven and a “no-trade deal” Brexit will hamper any growth next year. Ireland recorded the smallest fall in GDP across Europe due to the pandemic, but experienced one of the highest falls in spending by consumers. The bank also warns that if there is a no-trade deal Brexit, the biggest impact will be felt in the first three months of next year with food exporters bearing the brunt of potential falls in demand for their goods of up to 75 per cent.
Services sector see decline after recent summer growth
Business Post– 06.10.2020
The recovery in the services sector that was evident in the summer months ran out of steam in September, according to AIB's monthly measure of activity in the sector. The AIB Purchasing Managers' Index found that activity fell sharply in the month following two months of modest expansion. The index tracks activity on a scale of 1 to 100, with 50 the break-even point separating expansion from contraction. The business activity index fell sharply into contraction territory in September, declining from August's 52.4 to 45.8.
Quick Service Restaurant (QSR) & Pub Sector
Mc Donald’s committed to future of Irish beef
Irish Farmers Journal– 03.10.2020
Mc Donald’s is one of the biggest buyers of Irish beef, sourcing up to 40,000t every year. Nina Prichard, Head of Sustainable and Ethical Sourcing at McDonald's said the company has been buying Irish beef for more than 40 years and that sustainability of Irish beef production is one of the key reasons it has become such a major customer for the Irish beef industry. Prichard said its testament to the sustainability of Irish farming that McDonalds has selected 3 Irish farmers to be part of its Flagship Farmer Programme, which has just 33 members from all over the world.
Pubs' legal action against FBD insurance over Covid-19 cover begins
The Journal– 06.10.2020
Insurers FBD’S reasoning for not paying out business interruption claims caused by the Covid-19 pandemic to publicans are “plainly wrong” and “make no sense”, the Commercial Court has heard. In what are seen as important test cases, lawyers representing four publicans have brought cases challenging FBD Insurance Plc’s refusal to indemnify them, and the insurer’s stance that its policies of insurance do not cover the disruption caused to businesses by Covid-19.
Hotel & Restaurant Sector
'Implosion' of hotel revenues - Irish Hotels Federation
RTE Business– 07.10.2020
Hotel revenues have "imploded" across the country as a result of the Level-3 restrictions, limiting guests to staying within the county they live in over the next three weeks, according to the Irish Hotels Federation. It said over 1 million bed nights will be lost as a result of Covid restrictions during this period compared to last year. The IHF said it is having a disastrous impact on the ability of hotels to stay open, with many hotels now facing enormous uncertainty for the remainder of the year and having to decide on whether or not to close. Hoteliers are calling for emergency intervention by the Government in the form of immediate additional supports directly targeting tourism and hospitality businesses.
RAI calls for number of support measures in pre-budget submission
Hospitality Ireland– 02.10.2020
The Restaurants Association of Ireland (RAI) has revealed its pre-budget submission for 2021 in which it calls on the Irish government to implement a number of support measures for Ireland's restaurant and hospitality sectors. The RAI calls for a return to temporary wage subsidy scheme (TWSS) rates on a sectoral basis, an increase in the tourism budget from €186 Million to €300 Million; the creation of a small business recovery fund / a grant to cover local authority charges and keep businesses solvent; the introduction of a real time voucher scheme similar to the UK's "Eat Out to Help Out" discount scheme and a range of other supports.
Route to Market & Contract Catering Sector
Newry-based food-to-go manufacturer Around Noon acquires Simply Fit Food
Hospitality Ireland– 06.10.2020
Newry-based food-to-go manufacturer Around Noon has announced that it has acquired Drogheda-based convenience meals supplier Simply Fit Food. Going forward, Simply Fit Food will continue to trade under its existing brand name, and Simply Fit founders Evelyn Garland and Luke Judge will remain shareholders and continue to operate and manage the business as a unit within Around Noon. Around Noon is planning to invest substantially in a refresh of the Simply Fit Food brand and product range, including an investment in new environmentally friendly packaging.
'Trust is New Currency' says Sodexo
Hospitality Enews– 30.09.2020
Sodexo and Harris Interactive has shown that trust is the new corporate currency. Despite some concerns over personal and family health, the research showed that over 8 out of 10 respondents are confident their organisations will create a safe environment once they return to work. 65% said communications from their employer were good or very good during the pandemic and 64% felt well-informed about how to work effectively in terms of conducting meetings and safety precautions in the workplace.