Consumer Foodservice in Ireland
Euromonitor International's Consumer Foodservice in Ireland report examine stand-alone restaurants and eating establishments in which the consumer can freely choose to eat. The report looks at market trends by sector (cafes/bars, full-service restaurants, fast food, home delivery and street stalls). It profiles the leading companies in the market and analyses factors influencing eating out patterns. Forecasts illustrate how the market is set to change
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Tables: 107 | Publication date: Sep 2007
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Product coverage
Consumer foodservice by chained/independent; Consumer foodservice by type; Consumer foodservice by type and chained/independent
Executive summary
CFS vulnerable to “Rip Off Ireland”
In the latter part of the review period, media attention focused on the issue of value for money in relation to goods and services in Ireland, which included the consumer foodservice industry. The restaurant sector in particular worked hard to justify its menu prices, arguing that its profit margins are really quite slim. With the CFS market showing potential for growth, Irish operators did not want to experience a fall off in sales similar to that seen in on-trade alcoholic drinks due to the perceived value for money issue.
Irish consumers & healthier options
According to the Campbell Catering Food Futures survey published in December 2005, over one third of Irish consumers now seek healthier options when eating out. Correspondingly, over a third of consumers surveyed said they would eat healthier if the choice was available. CFS operators that have taken the initiative in offering healthy options on their menu are well positioned to capture this growing trend.
Higher spending on eating out than eating at home
A faster pace of life, longer working hours and increased disposable income all contributed to the amount spent on food outside the home exceeding the amount spent on eating at home. Foodservice value sales increased faster than outlet growth, suggesting that consumers were spending more per transaction. Value sales were boosted by an increase in lunchtime eating; the dominance of bakery products fast food is an indication of the growth in lunchtime sales, driven by time pressured consumers no longer willing to prepare their own food.
Irish still have traditional tastes
The choice of cuisines available in Ireland, particularly in Dublin, is wide-ranging. However, outlets offering traditional Irish cooking still dominate the market. Increased travel abroad has broadened Irish tastes but it appears that many consumers still seek the reassurance of their home cuisine. A recent trend in Irish restaurants is to combine French cooking techniques with good quality, fresh, locally produced ingredients. Such restaurants have transformed Ireland into a gourmet holiday destination.
Optimistic forecast for CFS
Value sales are set to continue to outpace transaction growth, aided by rising disposable income among Irish consumers. Time-poor and cash-rich consumers have become reliant on foodservice offerings rather than eating at home, and with the economy predicted to remain stable, if not growing, this trend is set to continue. There will be a slowdown in the number of outlets opened due to the incredibly high real estate costs. Operators will focus on securing growth through increased transactions and by focusing on premium menu options.
KEY TRENDS AND DEVELOPMENTS
Changing Consumer Lifestyles
The Irish economy expanded rapidly since the advent of the single European currency in 1999. Currently, it has reached a level where per capita GDP is significantly higher than the EU average. Working patterns also shifted, with the service sector experiencing record employment gains. This dramatic economic expansion resulted in Irish disposable incomes of approximately twice the level as in the mid 1990s. With higher disposable incomes and access to the global economy, Irish consumers saw their lifestyles change in the last decade almost beyond recognition. Irish consumers currently have access to goods and services that were previously beyond their reach. They purchase new types of products, eat new types of food, travel to new places and experience different cultures.
Inside 20 years, the number of Irish residents travelling abroad increased by almost 800% – from 65,000 in 1985 to 485,000 in 2004. A foreign holiday used to be a rare luxury, affordable by only a small minority of the population. However, rising incomes and the proliferation of cheap airlines, such as Ryan Air, meant that an increased number of people could travel. Often, Irish families can currently afford several holidays a year. The increase in Irish travelling abroad had a dramatic effect culturally: consumers often returned home with a taste for something they had experienced abroad.
The increased influence of foreign cultures did not just come back in Irish suitcases. The internet revolution of the last decade resulted in European and American culture being imported over the phone lines at an astonishing rate. As a consequence, the typical Irish consumer had continuous instantaneous access to every conceivable piece of information from the remotest corners of the globe.
Current Impact
In the context of this rapidly changing economic and social environment, many quintessential Irish cultural traditions changed or disappeared altogether. The Irish and socialising in pubs traditionally went hand in hand, but several factors led to a change in Irish eating and drinking habits over the review period. Increasing numbers purchased from off-licences and chose to drink and entertain at home. The big night in became a prominent feature of Irish social life. Much was said about how the smoking ban affected the pub trade, but high on-trade drink prices and lifestyles changes were just as important. With the exception of young adults, the Irish are drinking less and are shifting towards a more continental approach to socialising. There is less emphasis on binge drinking and more on the finer things, such as wine and cocktails. A chief driver of this change was government and media attention on the prevalence of underage and binge drinking. Along with increasingly health conscious attitudes, this resulted in a drop in average alcohol consumption levels. Nevertheless, consumption levels were still among the highest in Europe. While rising living costs forced many out of on-trade establishments, alternative venues were found – particularly the home – where prices were cheaper and smoking was permitted.
A faster pace of life and higher disposable incomes encouraged an increased number of Irish consumers to eat out more frequently. In 2005, approximately 95% of the Irish population were believed to eat out on a regular basis, according to the Campbell Catering Food Futures survey. Greater affluence and higher disposable incomes, at least among certain groups, led to increased travel, and Irish consumers experienced a wide range of national cuisines. A rise in immigration, hastened by the ‘Celtic Tiger’ economy, also resulted in a ‘magpie’ attitude to food. This mixed up foods from different nations and regions and, in the process, spawned fusion cuisine. However, despite these influences and the broadening of Irish tastes, many consumers continued to opt for traditional Irish dishes centred on a portion of meat accompanied by potatoes and other vegetables. One size no longer fits all in Ireland. At a time when the choice is getting wider, there is a discernible trend of operators getting back to basics with a range of local favourites.
Future Outlook
In terms of the economy, the robust gains in household income and government spending will continue to be major engines of growth over the forecast years. Private consumption should increase by approximately 7% in 2007, and keep on going. Consumers will experience improvements in the standard of living and purchasing power.
Many of the macro trends that developed since the mid 1990s are set to continue. Ireland’s openness to international influences is set to increase over the forecast period. Foreign companies will continue to be attracted to Ireland’s modern, international economy. Internet access will maintain its current upward trend with an increasing proportion of the population gaining access to the highest speed broadband connections. The widening cultural horizons will be carried along by the continued influx of immigrants attracted by employment opportunities in Ireland’s growing economy. As well as the passive influences on the indigenous population from importing new cultures, Irish consumers will increasingly travel internationally. Although environmental concerns have placed the media spotlight on cheap air travel, the trend is set to continue. Irish consumers will take advantage of an increasing array of destination choices, and there will be continued improvement of the country’s own airport infrastructure. As a result, the demand for foreign products, from food to leisure activities, will continue to increase throughout the forecast years.
However, a few negative factors are beginning to creep into the economy. These may have an effect over the forecast years. Growth of GDP will slow slightly during 2007, owing to the weakening of temporary factors. Although unemployment has fallen consistently since the mid 1980s to a level of just 4%, the number of unemployed will begin to rise in 2007and 2008 due to immigration. Housing completions are expected to decline in 2007 and 2008 from the very high levels recorded in the review years. However, a pick-up in investment in house improvements, strong infrastructure investment and commercial construction should offset the impact of the downward correction in new residential construction.
The economy faces other threats also. The key domestic risk is the housing market. Since the mid 1990s, average house prices in Ireland have approximately tripled in real terms. They continued to rise at an annual rate of 15% during 2006. The most likely scenario is that prices will level out or decline slightly, housing construction will fall back gradually, and the market will remain subdued for some time. This could have a knock-on effect on consumption, as consumer confidence may be affected by any stagnation in the housing market.
Future Impact
The trend towards drinking at home is likely to remain over the forecast period. This will be due to house prices and the general cost of living staying on an upward trend, rising faster than wage increases. The big night in will become the norm if these pressures continue. This trend will also be boosted by retail and take away food service offerings, both of which are expected to develop further. However, a further downturn in trade could be avoided if consumer foodservice – especially cafés/bars and restaurants – becomes more competitive and shakes off its ‘rip off’ image. Coffee shops could play its part in helping to reverse the trend, by offering comfortable surroundings and a more affordable option for consumers that wish to socialise outside the home.
There is definitely a generational issue at play when it comes to menu choices in Ireland. Older consumers are likely to have more conservative tastes, while younger consumers are experimental in food choices. As such, the demand for traditional Irish menu options will likely continue over the early years of the forecast period. As today’s generation grows up, there will be increasing demand for more premium and sophisticated food offerings. Food in Ireland is currently influenced from the four corners of the world. It is likely, therefore, that trends that encompass everything from provenance, fair trade, and particularly food miles, will become central issues. With caring consumers seemingly striving to do some good in the world, it would appear to be only a matter of time before carbon-neutral restaurants make an appearance, and perhaps spell a sea change on what is eaten. Large game fish, such as swordfish and tuna, may not for very much longer be a staple on menus. Perhaps there will be increased focus on locally sourced material and sustainable farming in Ireland.
Changing Consumer Spending Patterns
Leisure became an increasingly important aspect of Irish society over the review period. Busy consumers used the time that labour-saving devices afforded them for entertaining. The modern Irish consumer lives life to the full, and spends as little time as possible on mundane and labour intensive tasks outside the working environment. Over the review years, Irish consumers experienced a significant rise in disposable incomes, and this allowed them access to an increasing variety of goods and services.
As Irish consumers became increasingly affluent, the retail landscape of Ireland changed at the same pace. This had a dramatic effect on spending patterns in the economy. Supermarkets/hypermarkets became the key distribution channel for grocery items, driving down prices and rapidly expanding the variety of products on offer. This channel also successfully branched out into non-grocery items, and this increased competition resulted in price fall for many items. Discounters Aldi and Lidl targeted Ireland as an area for expansion. Consumers warmed to their low price offerings, especially in basic commodities. In addition, private label increased its presence with the entry of international players, such as Tesco. It altered the perceptions of many consumers that previously viewed private label as cheap and nasty. They currently see a much improved quality offering. These savings meant that Irish consumers had much more disposable income to spend on leisure pursuits, such as eating out.
The clichéd picture of an Ireland with a relaxed, slow pace of life is rapidly being replaced by the image of young Dubliners grabbing a skinny decaf latte on their way to work. The increase in spending power, and consumers working harder and longer hours, has ushered in an age where convenience is almost as important as quality. Consumers are willing to pay a premium for goods and services that save time.
Current Impact
Rising incomes and an increased demand for leisure activities had conflicting consequences for consumer foodservice in Ireland. On the one hand, consumers perceived the CFS market as a pure leisure or entertainment service. Consumers demanded a wider variety of food options and were willing to pay more to experience new cuisines and to be entertained in style. At the same time, consumer foodservice evolved to fit the new busy Irish lifestyles. This was an on-the-go culture, becoming more prevalent especially in urban areas where consumers pay a premium for quick, quality service.
Changing working patterns included an expectation from employers that workers put in the hours to keep the ‘Celtic Tiger’ economy booming. This led to a demand for quick and easily accessible food, both in and out of the home. Consumers turned to CFS to provide them with snacks and meals that allowed them to get on with their busy schedules. Ready meals at home and take away witnessed an upturn as many consumers sacrificed or ‘outsourced’ cooking along with other household chores. As in other countries, snacking became a fixture of Irish life, as did eating out for breakfast and lunch. This gave rise to some popular names on the high street, such as O’Brien’s. It experienced a boom alongside the roaring Irish economy that brought about the change in lifestyles.
Perhaps the most noticeable effect on CFS in Ireland from the rise of the new Irish consumer was the continuing growth of chains of specialist coffee shops. Starbucks Coffee Co and Tuli Holdings (Costa) entered Ireland in 2005 to take on the leading domestic chain – Insomnia Coffee Co. Rather than take share away from the incumbent, all three chains experienced impressive growth over the review years. This demonstrated Ireland’s emerging new food and drink culture.
The convenience trend clearly benefited fast food, 100% home delivery/takeaway and street stalls/kiosks. In contrast, full-service restaurants, cafés/bars and self-service cafeterias found it difficult to compete with the demand for take-out food. The trend of entertaining at home provided a boost to 100% home delivery/takeaway. Chained outlets particularly benefited from the quality assurance their brands provided. The quality of fast food improved enormously, particularly within bakery products fast food, and consumers no longer had to compromise quality for convenience. As consumers had less time to sit down and relax, particularly during lunch breaks, specialist coffee shops experienced a shift towards takeaway as opposed to eat-in. The term ‘grazing’ also entered Irish foodservice vocabulary, and snacking became a big money spinner for retail brands moving their distribution into foodservice.
Future Outlook
Private consumption should increase by approximately 7% in 2007. Despite the predicted slowing down of GDP growth during the forecast years, the fact remains that the Irish economy is expected to continue growing and getting stronger. This will inevitably be fuelled by people working longer hours and earning more money despite the increasing living costs in Ireland. As the housing market will continue to cause house prices to rise, personal wealth will be increasingly linked to house valuations. As a result, consumers will feel richer, and thus feel able to spend more money on premium products.
As air travel is set to remain cheap and broadband internet access is expected to get faster and become more widespread, consumers will become increasingly global in their outlook. Their desire to try new products and services from around the world will thus increase. In addition, the recent presence of Tesco is set to increase and this will inevitably lead to even lower prices in Ireland for many items. This will free up an increased amount of disposable income for Irish consumers to lavish on themselves, and much of this will be spent in foodservice outlets.
Future Impact
A number of factors will ensure that demand for on-the-go food options will not diminish. The link between a strong economy and a dynamic CFS market is clear. As Ireland remains one of the fastest growing economies in Europe, the country’s consumer foodservice looks set for healthy growth. CFS operators were quick to respond to the demand for on-the-go options. However, this was not the preserve of CFS alone – retailers also got in on the act and mirrored trends in the UK. These operators look set to continue to develop foodservice type offers, and this will further blur the boundaries between what was traditionally considered retail and foodservice. Even currently, many convenience stores feature dedicated foodservice space in their outlets. This trend is anticipated to continue, with Spar, for example, introducing ambitious plans to modernise its network with a varied foodservice offer in mind. Also, the trend for convenience stores with in-store fast food concessions is planned to develop along US lines. This sees examples such as Pizza Hut operate concessions in Target branded outlets.
Consumer foodservice companies will have to focus carefully on their menus to ensure that they do not alienate key consumer groups. While the younger generation will embrace new menu concepts, it is consumers aged over 35 years that have the most spending power and that remain more conservative in their choice of menu when eating outside of the home. With younger consumers increasingly favouring the ‘big night in’, outlets will have to position themselves more keenly in order to capture the older age group. This is particularly pertinent for cafés/bars and pubs. They will have to continue looking for ways to insulate themselves from the effects of the smoking ban, as they saw drink sales drop by an average of 15% in metropolitan areas and approximately 30% in outlying regions in 2006.
As consumer spending patterns will continue to shift, it is likely that on-trade establishments will have to diversify. They will have to extend their food offerings in order to reduce their reliance on sales of drink. Bars and cafés/bars have already been particularly creative in dealing with the new environment. They offer takeaway food, off licence liquor and comfortable outdoor areas catering for smokers and those that just like a more continental atmosphere.
Legislation
For a country that is known for its laidback and relaxed attitude to life, Ireland has, surprisingly, become a country seemingly bound up by regulations and legislation. Ireland was the first European country to impose a ban on smoking in the workplace. The ban was introduced primarily for health and safety reasons. The Irish government maintained it had a duty to protect people from the dangers of passive smoking and ensure a safe working environment. No doubt, the government also expected the ban to encourage smokers to quit, improving the nation’s health and saving the health service billions of euros on treating smoking-related diseases. However, some regulations were relaxed. The government was keen to promote a cultural shift in the Irish approach to alcohol consumption – away from binge drinking and towards more moderate habits. New legislation was promised to permit restaurants to serve beer and spirits as well as wine. The new legislation would create a middle ground, where alcohol could be consumed in the context of a food setting.
Other legislation came straight from Brussels. New EU hygiene legislation, commonly referred to as the hygiene package, came into force on 1 January 2006. The previous 17 hygiene directives were consolidated into five new pieces of legislation covering hygiene, animal health and food control. The hygiene package was designed to modernise all aspects of food production from farm to fork. The key aspect of the legislation was that all food operators bore full responsibility for ensuring that the food they served met the required safety standards. In addition, legislation not directly related to CFS had a knock-on effect on the market. For instance, the abolition of the Groceries Order and retail planning legislation had a major impact on the retail environment. This had consequences for all parts of the Irish economy, including consumer foodservice.
Current Impact
The smoking ban may have encouraged the Irish to shun the pub in favour of drinking at home. However, it also provided an opportunity for pubs and restaurants to promote their food menus and attract consumers that previously avoided the smoky atmosphere of these establishments. The new legislation relaxing the sale of beer and spirits in restaurants also served to encourage consumers out of their homes and into restaurants, opening up a new space in which to socialise. Ireland became a modern European nation, and the Irish embraced a more continental approach to food and alcohol.
Initially, calls for tougher action on junk food marketing to children focused on retail food businesses. However, the spotlight began to fall on CFS operators and their responsibility in tackling child obesity. If fast food operators want to avoid government intervention, then they will have to self-regulate either by re-examining their marketing to children or revamping their menus. There are current indications that fast food companies are seizing this opportunity. McDonald’s Ireland Ltd jumped on the ‘healthy but convenient food’ bandwagon by trailing its ‘my dinner now’ concept in Australia. This sees meals with Thai and Indian influences being prepared from scratch using fresh ingredients at the point of order. Meanwhile, rival Burger King’s latest toy promotion featured outdoor activity games, such as power step pedometers and frisbees.
Implementing the hygiene package legislation proved costly for small independent operators in Ireland. Costs inevitably had to be passed on to the consumer that already perceived prices, especially in full-service restaurants, to be inflated. To spread costs, many businesses eschewed the independent life for the relative security of a franchised or chained operation. The abolition of the Groceries Order increased the power of supermarkets/hypermarkets, as it was able to discount products to drive footfall into its stores. This enabled it to expand into many non-grocery areas as well, and its place in the Irish retail landscape became more evident each year of the review period. This was exacerbated by the relaxation of planning laws that enabled supermarkets/hypermarkets and out-of-town shopping centres to get larger and larger. Competition for consumer foodservice providers was increased, as consumers had better access to quality food to cook at home. However, at the same time, this opened up new opportunities for consumer foodservice operators. They could also relocate to these out-of-town centres, where rents were cheaper and they had access to a captive consumer group, with trade all day long.
Future Outlook
The Irish government is keen to persuade its citizens to live healthier lifestyles. The implementation of the smoking ban demonstrated that it was not afraid to introduce legislation that – some would say – infringes civil liberties. A legislative approach to tackling unhealthy consumer behaviour would appear to be pivotal to government policy over the forecast years. The Irish obesity taskforce, set up in March 2004, proposed that the government take steps to protect children from the marketing of unhealthy food. The concept of food labelling, highlighting nutritional content, was also suggested.
Ireland embraced its membership of the EU wholeheartedly and, consequently, the implementation of EU legislation. The hygiene package legislation required that all foodservice operators be registered with the Health Service Executive. Operators need to obtain an annual licence, and can expect a site visit from food hygiene inspectors once a year. Over the forecast years, there will be an increasing amount of legislation handed down from Brussels that will affect consumer foodservice in Ireland, both directly and indirectly.
Future Impact
An increase in legislation, likely to be imposed by the Irish government and from the EU, will continue to have consequences throughout consumer foodservice. The prevailing health trend in the market has come, in part, from consumer demand for healthier options but also from legislation. This trend will continue to shape the market over the forecast years. Fast food, in particular, will have to increase offerings of healthy products to consumers, as well as improve the health credentials of its current product lines. Eventually, there may even be fast food operators specifically targeting health conscious consumers.
The expected increase in legislation will undoubtedly lead to an increase in costs for operators, as they will have to spend money in order to comply with the legislation. This will further impede independent operators, as small players will either have to pass these costs on to consumers or risk going out of business. The Irish perception of restaurants being too expensive shows no sign of disappearing, and this will create an even more difficult trading environment for independent operators. In the major conurbations, such as Dublin and Cork, chains are forecast to increasingly dominate, as independents will not be able to afford the rising costs. Independent operators will continue to operate in the less dense areas where the chains are unlikely to exist.
Health
Health in Ireland increasingly became a topic of media debate. One of the fastest growing causes of death is chronic liver disease and cirrhosis. This has increased by 108% since 1990. The Irish nation is traditionally renowned for its excessive drinking habits. However, in 2003, chronic liver disease and cirrhosis, in which alcohol is the major contributory factor, was the cause of the death of half a million Irish people. A European survey into Ireland’s drinking culture showed that Irish people drank much more than their European counterparts. They also had more health problems per drinker. Alcohol-related problems currently cost Irish society approximately €2.4 billion per year. This is an issue that the Government has attempted to tackle through its national awareness campaign, ‘Think before you drink – less is more’. It also introduced strict new provisions in relation to pubs. This included a ban on ‘happy hour’ promotions and strict fines for publicans that sold alcohol to consumers that were already drunk.
It was not just the consumption of alcohol that came under the spotlight. One in three Irish adults does not eat the recommended amount of four or more servings of fruit and vegetables per day: this increases their risk of developing diseases such as cancer. Obesity rates increased in Ireland over the review period, and visits to fast food outlets increased by 38% since 1990. A report released by the National Taskforce on Obesity in 2005 indicated that 18% of adults were classified as obese in Ireland: a further 39% were overweight. In 2004, the Irish government set up a taskforce on obesity to try and tackle the problem. The campaign encouraged people to take part in more active lifestyles and to adopt a healthier diet. In May 2005, the obesity taskforce followed the UK’s initiative. It called for a ban on vending machines in schools, as well as a review and development of guidelines on food labelling. The taskforce recommended that food agencies, along with industry and consumer groups, should develop accurate and consistent labelling that includes information on portion sizes and nutrient content. The initial focus was on packaged food, but it is almost certain that the role that consumer foodservice plays in the obesity problem will be looked at more closely over the medium term.
Current Impact
As health issues became more widely publicised, Irish consumers began to reassess what they ate and drank, and this had an effect on consumer foodservice. The trend towards healthier menu options became increasingly prominent, and healthy food appeared in most sectors of the market. Consumers were increasingly aware of the shortcomings in their diets, and started to look for healthy options when eating out.
Unsurprisingly, the sector that garnered most of the bad publicity in terms of its health credentials was fast food. This was, in particular, burger fast food – the traditional stronghold of mass produced nutritionally poor food. Multinational chains, McDonald’s and Burger King, as well as indigenous company, Supermacs Ltd, extended their menus to include salads, wraps and bagels in an attempt to better meet diverging consumer demand. The health trend provided a boost for Subway. Its sandwiches were perceived by consumers as being fresher and healthier than other fast food. The question remains as to whether these burger and chicken chains can entice health conscious consumers through their doors. Rival operators with health positioned brands untainted by past transgressions will be in a better position to capitalise on the new trend. What is noticeable is the development of menus that illustrate more clearly the healthy options. There is also more precise labelling, as operators embrace the health trend. It is interesting to see both Thai and Japanese food – strongly associated with healthy living – moving into Irish consumer foodservice. The health trend has certainly made the country’s culinary range more interesting and exotic.
The up-and-coming fast casual dining has been, in part, driven by a desire for healthier food options. Although many of the pioneers in this subsector are burger restaurants, they sell themselves on the quality and freshness of their ingredients. Some even use only organic, locally sourced produce. This has given the Irish consumer an outlet for fast food but without the unhealthy connotations.
Future Outlook
Health problems cost the Irish government money. As heart disease is one of the largest killers in Ireland, it is likely that the government will become more involved in the drive to fight the disease, as well as other diseases that result from unhealthy lifestyles, over the forecast period. It is necessary to make people aware of this, and that the food they choose plays a role in their health as well as lifestyles. Using labels as a method of education may result in consumers making better choices. It will allow them to cut out salt, fats and high calorie food. If consumers are encouraged to make more considered choices, then strains on the healthcare system may be reduced in the long term. There may be direct legislation introduced to force consumer foodservice providers to cut out unhealthy options and provide information on the health credentials of each dish on the menu. Workshops could be run on a regular basis by local health centres or community dieticians. This could help to educate consumers on how to read labels and information leaflets to better address health issues. This has been proposed as part of a national campaign. The costs of such a programme would be high, but could mean lower financial costs and deaths in the long term.
One of the main drivers of growth in consumer foodservice has been the trend for convenience, as consumers have less time to eat. There is often a link between convenience food and poor health. Fast food is often used as a convenient way to eat whilst on the go or in lieu of the effort and time involved in preparing a meal. Parents, bending to pressure from children that have been exposed to a ceaseless barrage of advertisements on TV, often use fast food establishments, such as McDonald’s, Kentucky Fried Chicken (KFC), Abrakebabra or Burger King to feed their families. The new Irish consumer – young, single, and with a large amount of disposable income – wants to spend as little time as possible in supermarkets/hypermarkets and none at all in the kitchen. This results in a fondness for eating out. These trends are likely to continue over the forecast period, and will keep the spotlight firmly on consumer foodservice and how it responds to a demand for healthy options.
Future Impact
CFS operators will have to take the lead on providing healthier food for their customers or they may end up facing draconian legislation. Many of the new emerging sectors, such as the chained coffee shops, have tapped into the healthy eating trend from the outset, and will be at the forefront of changes in the market. In order to differentiate themselves, they have often chosen to provide a range of fresh, healthy and organic sandwiches to their consumers who will pay a premium for such offerings. All CFS operators have an opportunity to drive value sales over the forecast period, by offering healthy products that often fit into the premium end of foodservice.
With smoking seeing a long-term downturn in Ireland, deaths associated with obesity and poor diet are expected to become increasingly significant over the forecast period. This will put yet more pressure on the government and, consequently, consumer foodservice, to come up with solutions. Negative press surrounding fast food is likely to have a similar effect as it did in the UK. Consumers will turn away from this food type in favour of fresher and healthier alternatives. CFS operators quickly realised that consumers were actively searching for healthy options that met their newfound diet and health expectations, although the overriding purchase decision was still based on taste. The idea that tasty food and healthy food need not be mutually exclusive began to develop. Progress will be slow, however, as the demand for traditional ‘meat and two veg’ cuisine shows no sign of diminishing in Ireland.
Table of contents
CONSUMER FOODSERVICE IN IRELAND : MARKET INSIGHT
CFS vulnerable to “Rip Off Ireland”
Irish consumers & healthier options
Higher spending on eating out than eating at home
Irish still have traditional tastes
Optimistic forecast for CFS
KEY TRENDS AND DEVELOPMENTS
Changing Consumer Lifestyles
Changing Consumer Spending Patterns
Legislation
Health
Table 1 Units, Transactions and Value Sales in Consumer Foodservice: 2001-2006
Table 2 Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2001-2006
Table 3 Consumer Foodservice by Independent Vs Chained Outlets: Units/Outlets 2006
Table 4 Consumer Foodservice by Eat in Vs Takeaway 2006
Table 5 Consumer Foodservice by Food Vs Drinks Split 2006
Table 6 Sales in Consumer Foodservice by Location 2001-2006
Table 7 Leading Chained Consumer Foodservice Brands by Number of Units 2006
Table 8 Chained Consumer Foodservice Company Shares 2002-2006
Table 9 Chained Consumer Foodservice Brand Shares 2003-2006
Table 10 Forecast Units, Transactions and Value Sales in Consumer Foodservice: 2006-2011
Table 11 Forecast Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2006-2011
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - IRELAND
ABRAKEBABRA LTD - CONSUMER FOODSERVICE - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Abrakebabra Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 3 Abrakebabra Ltd: Competitive Position 2006
EDDIE ROCKET'S CITY DINER LTD - CONSUMER FOODSERVICE - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Eddie Rocket’s City Diner Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 Eddie Rocket’s City Diner Ltd: Competitive Position 2006
INSOMNIA COFFEE CO - CONSUMER FOODSERVICE - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Insomnia Coffee Co: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 7 Insomnia Coffee Co: Competitive Position 2006
O'BRIEN'S IRISH SANDWICH BARS LTD - CONSUMER FOODSERVICE - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 8 O’Brien’s Irish Sandwich Bars Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 9 O’Brien’s Irish Sandwich Bars Ltd: Competitive Position 2006
SUPERMACS LTD - CONSUMER FOODSERVICE - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Supermacs Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 11 Supermacs Ltd: Competitive Position 2006
CAFéS/BARS IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 12 Cafés/Bars by Subsector: Units/Outlets 2001-2006
Table 13 Cafés/Bars by Subsector: Transactions 2001-2006
Table 14 Cafés/Bars by Subsector: Foodservice Value 2001-2006
Table 15 Cafés/Bars by Subsector: % Volume Growth 2001-2006
Table 16 Cafés/Bars by Subsector: % Transaction Growth 2001-2006
Table 17 Cafés/Bars by Subsector: % Foodservice Value Growth 2001-2006
Table 18 Global Brand Owner Shares of Chained Cafés/Bars 2002-2006
Table 19 Brand Shares of Chained Cafés/Bars 2003-2006
Table 20 Forecast Sales in Cafés/Bars by Subsector: Units/Outlets 2006-2011
Table 21 Forecast Sales in Cafés/Bars by Subsector: Transactions 2006-2011
Table 22 Forecast Sales in Cafés/Bars by Subsector: Foodservice Value 2006-2011
Table 23 Forecast Sales in Cafés/Bars by Subsector: % Volume Growth 2006-2011
Table 24 Forecast Sales in Cafés/Bars by Subsector: % Transaction Growth 2006-2011
Table 25 Forecast Sales in Cafés/Bars by Subsector: % Foodservice Value Growth 2006-2011
FULL-SERVICE RESTAURANTS IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 26 FSR by Subsector: Units/Outlets 2001-2006
Table 27 FSR by Subsector: Transactions 2001-2006
Table 28 FSR by Subsector: Foodservice Value 2001-2006
Table 29 FSR by Subsector: % Volume Growth 2001-2006
Table 30 FSR by Subsector: % Transaction Growth 2001-2006
Table 31 FSR by Subsector: % Foodservice Value Growth 2001-2006
Table 32 Global Brand Owner Shares of Chained FSR 2002-2006
Table 33 Brand Shares of Chained FSR 2003-2006
Table 34 Forecast Sales in FSR by Subsector: Units/Outlets 2006-2011
Table 35 Forecast Sales in FSR by Subsector: Transactions 2006-2011
Table 36 Forecast Sales in FSR by Subsector: Foodservice Value 2006-2011
Table 37 Forecast Sales in FSR by Subsector: % Volume Growth 2006-2011
Table 38 Forecast Sales in FSR by Subsector: % Transaction Growth 2006-2011
Table 39 Forecast Sales in FSR by Subsector: % Foodservice Value Growth 2006-2011
FAST FOOD IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 40 Fast Food by Subsector: Units/Outlets 2001-2006
Table 41 Fast Food by Subsector: Transactions 2001-2006
Table 42 Fast Food by Subsector: Foodservice Value 2001-2006
Table 43 Fast Food by Subsector: % Volume Growth 2001-2006
Table 44 Fast Food by Subsector: % Transaction Growth 2001-2006
Table 45 Fast Food by Subsector: % Foodservice Value Growth 2001-2006
Table 46 Sales of Bakery Products Fast Food by Type 2006
Table 47 Global Brand Owner Shares of Chained Fast Food 2002-2006
Table 48 Brand Shares of Chained Fast Food 2003-2006
Table 49 Forecast Sales in Fast Food by Subsector: Units/Outlets 2006-2011
Table 50 Forecast Sales in Fast Food by Subsector: Transactions 2006-2011
Table 51 Forecast Sales in Fast Food by Subsector: Foodservice Value 2006-2011
Table 52 Forecast Sales in Fast Food by Subsector: % Volume Growth 2006-2011
Table 53 Forecast Sales in Fast Food by Subsector: % Transaction Growth 2006-2011
Table 54 Forecast Sales in Fast Food by Subsector: % Foodservice Value Growth 2006-2011
100% HOME DELIVERY/TAKEAWAY IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 100% Home Delivery/Takeaway by Subsector: Units/Outlets 2001-2006
Table 56 100% Home Delivery/Takeaway by Subsector: Transactions 2001-2006
Table 57 100% Home Delivery/Takeaway by Subsector: Foodservice Value 2001-2006
Table 58 100% Home Delivery/Takeaway by Subsector: % Volume Growth 2001-2006
Table 59 100% Home Delivery/Takeaway by Subsector: % Transaction Growth 2001-2006
Table 60 100% Home Delivery/Takeaway by Subsector: % Foodservice Value Growth 2001-2006
Table 61 Global Brand Owner Shares of Chained 100% Home Delivery/Takeaway 2002-2006
Table 62 Brand Shares of Chained 100% Home Delivery/Takeaway 2003-2006
Table 63 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Units/Outlets 2006-2011
Table 64 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Transactions 2006-2011
Table 65 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Foodservice Value 2006-2011
Table 66 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Volume Growth 2006-2011
Table 67 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Transaction Growth 2006-2011
Table 68 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Foodservice Value Growth 2006-2011
SELF-SERVICE CAFETERIAS IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 69 Self-service Cafeterias by Subsector: Units/Outlets 2001-2006
Table 70 Self-service Cafeterias by Subsector: Transactions 2001-2006
Table 71 Self-service Cafeterias by Subsector: Foodservice Value 2001-2006
Table 72 Self-service Cafeterias by Subsector: % Volume Growth 2001-2006
Table 73 Self-service Cafeterias by Subsector: % Transaction Growth 2001-2006
Table 74 Self-service Cafeterias by Subsector: % Foodservice Value Growth 2001-2006
Table 75 Global Brand Owner Shares of Chained Self-service Cafeterias 2002-2006
Table 76 Brand Shares of Chained Self-service Cafeterias 2003-2006
Table 77 Forecast Sales in Self-service Cafeterias by Subsector: Units/Outlets 2006-2011
Table 78 Forecast Sales in Self-service Cafeterias by Subsector: Transactions 2006-2011
Table 79 Forecast Sales in Self-service Cafeterias by Subsector: Foodservice Value 2006-2011
Table 80 Forecast Sales in Self-service Cafeterias by Subsector: % Volume Growth 2006-2011
Table 81 Forecast Sales in Self-service Cafeterias by Subsector: % Transaction Growth 2006-2011
Table 82 Forecast Sales in Self-service Cafeterias by Subsector: % Foodservice Value Growth 2006-2011
STREET STALLS/KIOSKS IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 83 Street Stalls/Kiosks by Subsector: Units/Outlets 2001-2006
Table 84 Street Stalls/Kiosks by Subsector: Transactions 2001-2006
Table 85 Street Stalls/Kiosks by Subsector: Foodservice Value 2001-2006
Table 86 Street Stalls/Kiosks by Subsector: % Volume Growth 2001-2006
Table 87 Street Stalls/Kiosks by Subsector: % Transaction Growth 2001-2006
Table 88 Street Stalls/Kiosks by Subsector: % Foodservice Value Growth 2001-2006
Table 89 Global Brand Owner Shares of Chained Street Stalls/Kiosks 2002-2006
Table 90 Brand Shares of Chained Street Stalls/Kiosks 2003-2006
Table 91 Forecast Sales in Street Stalls/Kiosks by Subsector: Units/Outlets 2006-2011
Table 92 Forecast Sales in Street Stalls/Kiosks by Subsector: Transactions 2006-2011
Table 93 Forecast Sales in Street Stalls/Kiosks by Subsector: Foodservice Value 2006-2011
Table 94 Forecast Sales in Street Stalls/Kiosks by Subsector: % Volume Growth 2006-2011
Table 95 Forecast Sales in Street Stalls/Kiosks by Subsector: % Transaction Growth 2006-2011
Table 96 Forecast Sales in Street Stalls/Kiosks by Subsector: % Foodservice Value Growth 2006-2011