Ireland remained in lockdown throughout the first half of 2021, with foodservice reopening for outdoor dining on 6 June and indoor dining on 26 July. The impact of lockdowns on cafés and bars has been varied, with pubs struggling more than any other channel.
As in other foodservice categories, chains generally did better than independents during the pandemic, with a weaker decline in 2020 and stronger growth in 2021. This was due to having more resources to build or maintain an online presence, assuming they did not already have one.
Generally, outlets in city centre locations were harder hit than outlets in more residential locations. Two of the main factors in the reduction of foodservice footfall in city centres were the disappearances of international tourism and office workers.
In all senses, costs have been rising, with many players highlighting staff shortages and difficulties with supply chains as the biggest issues that the consumer foodservice industry as a whole is currently facing. Staffing issues mean that some outlets do not have enough employees to be able to open throughout the week, with many hospitality workers having transitioned into different jobs during the pandemic due to the uncertainty of the work, some international staff having gone home during the pandemic, and new staff not coming into the industry.
The lockdowns have accelerated the long-term transition towards using technologies to improve business functions and cut costs. Particularly due to the rising costs discussed above, many are aiming to streamline various business processes and cut staff costs.
In the wake of the pandemic lockdowns, surveys have shown that people are keen to go out and treat themselves – however, while they may be willing to spend more, they are likely to go out less often. Pub players have reported that there has been an increase in average customer spend, but a decrease in the number of transactions, and that people are consuming less beer and more high-value items, but less of them.
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Cafés/Bars
This category encompasses all establishments where the focus is on drinking (either alcoholic or non-alcoholic beverages). While a wide variety of snacks and full meals are offered, it is not uncommon for consumers to only order a drink. As a general rule, establishments deriving 50% of their income or more from the sale of drinks are included here.
See All of Our DefinitionsThis report originates from Passport, our Cafés/Bars research and analysis database.
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