Welcome to the September edition of Bord Bia's Ireland Market Foodservice Newsletter – delighted to confirm that registration for our 2019 Irish foodservice seminar is now open!
The event is taking place on Wednesday, 13th November at The Killashee House, Naas, Co. Kildare. Speakers include Professor David Hughes aka Dr Food, along with representatives from Gourmet Food Parlour and Wrights Hospitality Group. Richard Curran is our seminar Chair and will also moderate a Panel Discussion examining some of the key drivers supporting foodservice growth.
As per previous years, cost per delegate to attend the seminar is €100 (incl VAT).
General Industry News
No-deal Brexit could wipe out growth next year
The Business Post – 26.09.2019
The Economic and Social Research Institute (ESRI) has said it is “not inconceivable” that the Irish economy could shrink next year in the event of a no-deal Brexit. While the think-tank's headline forecasts in its latest economic commentary show GDP rising by 4.9 per cent this year and 3.1 per cent next year, these numbers are based on the assumption that the UK will effectively remain an EU member beyond October.
AIB releases new 'Hospitality And Tourism Outlook' report
Hospitality Ireland – 26.09.2019
AIB has published its "Hospitality and Tourism Outlook" for 2019, which gives a holistic view of the industry using card spending data on national and regional levels across the subsectors of accommodation, restaurants, pubs and attractions. Head of hospitality and tourism at AIB David McCarthy commented, "Last year was an unprecedented year for the industry which saw the highest levels of international visitors and spend on record, and AIB are proud to have played a part in contributing towards that and will continue to support the industry into the future. We urge businesses to take social, environmental and economic responsibility seriously, which will create a more sustainable national hospitality sector."
Quick Service Restaurant (QSR) Sector & Pub Sector
Just Eat’s Irish subsidiary delivers a €9.2m profit
The Irish Times – 25.09.2019
Food delivery company Just Eat served up profits of €9.2 million at its Irish unit last year, a 95 per cent jump on the previous year as a result of “substantial increases in turnover” helped by growth in its market share. The company, which agreed in August to merge with its Amsterdam-based rival, Takeaway. com, posted the increase in profit before tax as revenues rose almost 33 per cent to €27.2 million, according to recently filed accounts. Just Eat has been operating in an increasingly crowded sector, a factor that contributed to its decision to merge with Takeaway.com in a deal that values the company at £5 billion. The tie-up will create a food delivery group that had a combined 360 million orders worth €7.3 billion in 2018. The deal is expected to close by the end of this year.
Freshly Chopped’ Re-Opens Baggot Street Outlet
www.checkout.ie – 18.09.2019
Freshly Chopped’ has re-opened its outlet on Baggot Street with a new name and concept entitled ‘Freshly Chopped Innovation Kitchen’. Following a complete redesign of the menu and service model, the healthy food company said that it has created a 'more streamlined preparation and ordering system.' The group said that the refurbished outlet will also innovate by regularly trialling new menu options and product ranges, which could then roll out across the Chopped network. Since opening its first outlet on Baggot Street outlet in May 2012, Freshly Chopped has expanded to include over 50 outlets throughout Ireland and internationally. Brian Lee, Co-Founder and Managing Director of Freshly Chopped commented, "The new-look Baggot outlet is a first of its kind for Freshly Chopped, but we may look to expand the concept to other locations around the country as we continue our expansion.”
Wetherspoon Boss Seeks Outlets In Ireland For 30 More Pubs
Hospitality Ireland – 16.09.2019
Wetherspoon boss Tim Martin has said that he might open in the region of 30 more pubs across Ireland. Speaking with the Sunday Business Post, Martin said: If things go well here, we might have 20 or 30 pubs here in ten or 15 years.” The UK-based pub chain which operates more than 900 pubs in Britain and Ireland, reported a higher annual pretax profit last Friday. In June, 2017 the group was granted permission to open a ‘Super bar’ and hotel on Camden Street in the heart of the capital, in a €4 million investment. “Both in the UK and Ireland, accommodation is very much a new thing for us,” Martin told the newspaper, “it’s gone well so far, with occupancy levels, so it’s a possibility to pursue in other locations.”
Hotel & Restaurant Sector
Three more names added to the food and beverage line-up at Central Plaza
The Irish Times – 25.09.2019
As the redevelopment of the Central Bank’s former Dame Street headquarters in Dublin nears completion, Hines and the Peterson Group have added three new names to the food and beverage line-up at the scheme. The arrival of Gino’s Gelato, Las Iguanas and Bujo Burger, brings the pre-leasing at the newly-named Central Plaza to 75 per cent. The eight floors of office space at One Central Plaza meanwhile are already leased to flexible workspace provider WeWork, and in addition to Amtrust Financial , the scheme will house more than 1,300 office workers. In total there will be upward of 1,500 workers on-site across all uses. The top two floors are being transformed to create Dublin’s largest rooftop destination offering unobstructed 360-degree views of the city. Hotel and restaurant entrepreneur Zafar Shah is creating three different venues under one roof which will see it active from early morning to late evening attracting tourists, local shoppers, office workers and corporate events.
German fund closes in on €130m purchase of five-star Marker Hotel
Irish Times – 18.09.2019
German global real estate investment group Deka Immobilien is closing in on a deal to acquire Dublin’s five-star Marker Hotel for about €130 million. Deka’s purchase of the Marker Hotel comes just two years on from its acquisition for €87 million of the four-star Gibson Hotel at Point Square in Dublin’s north docklands. Located at Grand Canal Dock, the Marker Hotel comprises 187 guest bedrooms. The hotel’s current offering includes the Brasserie and Marker Bar, luxurious spa facilities, the Marker Rooftop Bar & Terrace and extensive conference and banqueting rooms.
Merrion Hotel had record 2018 as profits rose 29% to €4.1m
The Irish Times – 24.09.2019
New accounts for Hotel Merrion Ltd also show that revenues increased by 10 per cent to a record €25.06 million in the 12 months to the end of October 2018. On the risks facing the business, the directors state that the VAT rates for hotels, bars and restaurants has increased from 9 per cent to 13.5 per cent.“While this will not affect the margin, there is a risk it could impact occupancy rates and revenues from food and drink,” the accounts state.
A breakdown of the hotel’s revenues show that it recorded €15.83 million from accommodation, €8.25 million from food and beverage, €636,359 in “other income” and €338,196 from the leisure centre.
Casual Dining Sector
Bernard Shaw owner to open new pub on Dublin’s north side
The Irish Times – 20.09.2019
The Bernard Shaw pub and event space on Dublin’s South Richmond Street may be closing, but the eclectic mixture of old-fashioned boozer, small-scale events space, and right-on food venue (there’s even a vegan toastie on the menu), is to get a new home north of the Liffey. Trevor O’Shea’s Bodytonic hospitality and entertainment group has taken over the Porterhouse Whitworth, at Cross Guns Bridge, and when the Bernard Shaw closes at the end of October, as much of its footprint as possible, including the Eatyard food truck space, is transferring to the new venue. Even the name may be re-used.
Contract Catering Sector
Investments lead Avoca owner Aramark to record €14.9m loss
Irish Times – 27.08.2019
Restructuring costs and strategic investment in new Avoca stores contributed to Avoca owner Aramark Ireland recording a €14.9 million pretax loss last year. According to new accounts for integrated services group, Aramark Ireland Holdings Ltd, the group recorded the loss as revenue remained flat at €351 million in the 12 months to the end of September last. The directors state that revenue has remained steady in the year, with increases in foodservice and retail offset by decreases in non-core facilities business.