The Irish foodservice market could see its value slump by 47% to €4.5bn in 2020 when compared with the previous year, according to research published by Bord Bia.
Bord Bia’s 2020 Irish Foodservice Markets Insight Report estimates that the industry will lose more than €4bn in consumer spending in 2020, due in large part to the Covid-19 pandemic. However, it predicts that even in a worse-case scenario, there will be some bounce back in terms of market recovery in 2021.
The Bord Bia report looks to forecast what the future will hold for all involved in foodservice in Ireland. It also outlines key trends that foodservice operators and food suppliers should consider in order to ensure that their businesses remain relevant.
“The performance of the foodservice industry is intrinsically linked to economic conditions, tourism and employment – all of which will continue to be challenged in 2021,” said Maureen Gahan (pictured), foodservice specialist with Bord Bia.
“The changing landscape will have a long-term impact on revenue and profitability – everything from the drive from consumers for keener value pricing, to the shift away from city centre and high street locations, and the challenge of recruiting and training new staff.”
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According to Gahan, Bord Bia predicts that a best-case scenario for the foodservice sector in 2021 could see an uplift of as much as 41%. “However, in a worst-case situation, we’re suggesting that growth on 2020 figures will be circa 16%.”
Bord Bia’s report recommends a number of measures for foodservice providers and food producers to best position themselves for recovery.
Foodservice operators are being advised to consider new, more flexible restaurant layouts, incorporating outdoor seating and modular kitchens, as well as prioritizing safety and sanitation. Bord Bia also recommends that operators embrace off-premise services such as takeaway or meal delivery kits, and that they prepare for supply chain ‘bumpiness’ until additional lockdown concerns disappear.
For producers, Bord Bia recommends a reassessment of product lines in terms of long-term profitability, a focus on high-priority customers and a reconsideration of how Covid-19 has changed the attitudes and behaviours customers.
The findings of the report will be shared with almost 500 delegates at Bord Bia’s Virtual Foodservice Seminar, which is broadcasting live from the RDS in Dublin today. The annual event, which discusses emerging trends in the sector, will be chaired by business journalist Richard Curran.
Keynote speaker at this year’s seminar is Professor Stéphane Garelli, presenting on the topic of ‘From Breakdown to Breakthrough – Thriving in a New World’. Professor Garelli is the founder of the World Competitiveness Center and a former Managing Director of the World Economic Forum.
(Pic: Chris Bellew/Fennell Photography)
