On-trade

Out-of-home food & beverage spend up 4.5%

Irish consumers will spend €8.55 billion on out-of-home food & beverage this year.

 

That’s an increase of 4.5% on last year according to Bord Bia’s 2019 Irish Foodservice Market Insights Report, published today and shared with more than 300 delegates at Bord Bia’s Foodservice Seminar taking place in the Killashee Hotel in Naas.

The foodservice market includes all food consumed and prepared out-of-home. It incorporates restaurants, pubs, hotels, coffee shops, workplace catering, hospitals, education and vending.

Pubs themselves are responsible for €1.425 billion or 16% of this spend.

The report shows that everyday foodservice occasions continue to drive growth and are less likely to be affected by changes to consumer sentiment.

2019 has been described as ‘good’ although not as robust as in previous years. Industry observers note that there are some cautionary tones starting to appear headed into 2020, many of which are linked to Brexit uncertainty around sourcing and tourism numbers.

The report states that the industry should expect some maturity and deceleration over the next three years through to 2022, with overall island of Ireland growth forecasted to be 4.2% per year.

 

Busy lifestyles a driver

Busy lifestyles are driving consumer reliance on everyday foodservice occasions along with a need for reliable convenient meal solutions away from home.

“The Irish foodservice industry has been growing at robust levels for several years” said Maureen Gahan, Foodservice Specialist at Bord Bia, “but warning signs are on the horizon and industry operators and food and drink suppliers alike should be examining options and alternative strategic plans in the event of a possible slowdown.

“It’s important for food and beverage suppliers to the industry to stay close to the needs of today’s consumers and think about how their product can be part of a final solution that meets those needs,” she stressed.

“As the industry looks to maintain relevance, a focus on meeting consumer need states is essential,” said David Henkes of global food consultancy Technomic, “Today’s consumer is increasingly looking for convenience – whether that’s a growing demand for high quality Food-to-Go offerings or the increasing popularity of home delivery. And there’s an ongoing consumer movement in support of sustainability as a driver when choosing to eat out – 62% of global consumers say socially responsible initiatives are important when choosing restaurants.”

 

5 key opportunities for the foodservice industry identified in the report include:

  1. Healthy options for all ages – respondents across all life stages indicated an increased awareness and desire to eat healthier foods. While there are concepts in the marketplace that satisfy this need, the availability of ‘good tasting and good for you’ options at an everyday affordable price remains a consumer pain point.
  2. Customisation and choice in meal options – consumers cite a desire for increased customisation in their foodservice options. The ability to prepare a meal the way they want it represents a level of control that consumers associate with at-home meals and remains a whitespace for foodservice offerings. Consumers also expect greater breadth of choice including a variety of high-quality beverages and more plant-based options. While many operators acknowledge that strict veganism still only accounts for a small percentage of consumers, it’s important to cater to consumers looking for wider choices when eating out.
  3. Access to authentic global flavours – consumers reported a desire to explore global flavours including newer, more ethnically authentic cuisines as well as flavours that have been largely normalised to the Irish consumer palate.
  4. Reliable and competitive delivery services – although home delivery services have grown rapidly, there is still room for improvement on consumer issues relating to address, pricing and wait times.
  5. Perceived goodwill among operators – consumers expressed a desire to visit operators that they feel good about. This good feeling can be the result of elevated hospitality, transparent practices or a feeling of mutual respect. Consumers note that positive human interaction provides added value as part of dining out and foodservice operators should maximise this opportunity for building brand loyalty.

 

Foodservice Seminar

The annual event which discusses emerging trends in the sector was chaired by business journalist Richard Curran and delegates were addressed by Professor David Hughes, also known as ‘Dr Food’, who highlighted macro-trends shaping how and when we consume our food.

David Henkes, Senior Principal with Technomic, shared the latest in global foodservice insights. Those attending also heard from Lorraine Heskin, Founder of Gourmet Food Parlour, on how she built a successful restaurant and catering business and Ewan McDonald, Chief Operating Officer with the Wright Hospitality Group, on how Marqette in Dublin Airport is setting standards in Travel Food & Beverages.

A panel discussion focusing on current foodservice trends featured contributions from Bread Nation’s Eoin Cluskey, Bunzl’s Diana Geraghty, Deliveroo’s Michael Healy and Pat O’Neill of O’Neill’s Bacon. The panel discussed developments in packaging and sustainability, changing consumer demands, the role of third-party home delivery and tips on supplying the foodservice market.

At Bord Bia’s 2019 Irish Foodservice Seminar were (from left): Senior Principal at Technomic Dave Henkes, Bord Bia’s Maureen Gahan, Emeritus Professor of Food at Imperial College London David Hughes and journalist Richard Curran.

At Bord Bia’s 2019 Irish Foodservice Seminar were (from left): Senior Principal at Technomic Dave Henkes, Bord Bia’s Maureen Gahan, Emeritus Professor of Food at Imperial College London David Hughes and journalist Richard Curran.

 

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