Value of food services up 5.2% driven by rising costs
The value of the food bought outside the home across the island rose 5.2% over the last year, new data from Bord Bia shows.
It brought the total turnover in the food service industry in Ireland and Northern Ireland to €9.8bn, the highest level in the sector over the past decade.
However, the Irish food board said the bulk of the increase over the period was the result of cost pressures and inflation, leading to a 7% increase in menu prices.
“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,” said Maureen Gahan, Foodservice Specialist at Bord Bia.
“There remains steady consumer demand for dining out-of-home; however higher menu prices have started to deter some people from eating out.”
“In addition, the operating environment is increasingly daunting for many restaurants and foodservice operators.”
Bord Bia said the sector is facing a range of other challenges, as well as the ongoing upward pressures on costs.
It also said that while the availability of workers has improved, finding qualified candidates for skilled positions remains difficult.
The agency also pointed to a disappointing year for overseas visitors to Ireland this year, which has had implications for many firms.
“Today’s report identifies a number of key considerations for Irish food and beverage suppliers to familarise themselves with in order to future-proof their own businesses and remain relevant to industry and consumer needs,” said Ms Gahan.
“Unsurprisingly, there needs to be a continued focus on cost control and delivering value. In addition, suppliers should consider innovation in the context of helping their foodservice customers deliver greater efficiencies and profitability.”
Bord Bia says there are opportunities in the sector, including that consumers do still want to spend on “experiences” that are different or unique, while technology can also be used to enhance the capabilities of staff, rather than replace them.
It says some outlets are engineering their menus to boost profit, by removing higher cost items and shrinking the size.
Bord Bia says the outlook is for a 4.5% growth in the sector next year, bringing it to a €10.3bn turnover.
Article Source – Value of food services up 5.2% driven by rising costs – RTE
