The Irish out-of-home sector has increased by 5.2% in value and overall industry turnover has surpassed €9.8 billion across both the Republic of Ireland and Northern Ireland over the past year, according to the latest findings from Bord Bia’s annual Foodservice Market Insights Report.
Bord Bia noted while this is the highest level seen within the industry over the past ten years, much of this increase has come about due to inflation and higher menu prices, driven by significant cost pressures in the sector.
The report finds that consumers remain willing to spend money on occasions that are unique and different, but operators must continue to focus on cost reductions.
“The industry remains challenged from an operating cost-and-margin perspective – and this is the concern voiced by many,” said Maureen Gahan, foodservice specialist at Bord Bia.
“It is clear that suppliers, distributors and operators need to have a more targeted business strategy when looking ahead to the next 12-18 months. An ongoing focus on cost reduction will be critical.”
The report finds that while operators in the Irish foodservice sector have learned to deal with higher food costs, other costs have risen significantly, leading to increased financial strain, especially for small, independent operators, who are more vulnerable to closure.
Bord Bia claims that larger operators, including restaurant chains, are financially better positioned to operate in today’s cost environment.
“Looking back over the past four years, it is clear that the foodservice industry across Ireland has seen a great deal of disruption and recovery,” said Gahan.
“Since 2021, the industry has risen in value every year, based on a combination of greater footfall and annual increases in menu prices to the consumer. There remains steady consumer demand for dining out of home, however, higher menu prices have started to deter some people from eating out.”
