2019 Foodservice Insight Report
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1 Report Organisation Section 1: Introduction 4 Category Segmentation 56 Section 2: Executive Summary 12 Foodservice Product by Value 57 Overall Assessment 16 Temperature Mix 58 Section 6: Deep Dive on the Irish Macro Consumer Findings 18 60 Foodservice Consumer Unmet Consumer Needs 20 Key Consumer Findings 61 Industry Imperatives 21 The Winning Formula 22 Consumer Feedback on Critical Issues 72 Section 3: Size and Segmentation of the 24 Irish Foodservice Industry - Technology 74 - Health/Diet 79 Section 4: Channel Analysis 36 - Sustainability 83 Commercial Channels 38 - Value 88 Institutional Channels 48 Consumer Dine-Alongs 92 Section 5: Product Insights 54 Product Trends 55 Appendix 106 2 3 SECTION 1: INTRODUCTION Approach to Measuring the Irish Foodservice Industry • As part of its dedicated Ireland strategies and to highlight • The combination of these Market Foodservice potential opportunities. sources allowed the Technomic Programme, Bord Bia has • Technomic used a robust, multi- team to better obtain industry operated a Market Intelligence step methodology to collect and performance metrics, programme since 2009— synthesise information and to understand the size and delivering resources to both develop new insights on the condition of the market in client companies (Irish food and foodservice market in Ireland, Ireland, detect issues and beverage manufacturers) and including: challenges, and identify future customers (domestic • One-on-one trade interviews trends, drivers and predicted foodservice buyers) alike. with knowledgeable persons in growth rates. • For the development of this companies throughout the study, Bord Bia collaborated foodservice supply chain closely with Technomic, a global • Data collection from numerous food consultancy with 50+ years secondary sources, Technomic of expertise in the out of home industry studies and Knowledge industry, to deliver insights Center, Technomic necessary to assist in the international tracking and development of market published materials. 5 Market Sizing Methodology The illustration outlines key DATA OBTAINED steps in Technomic’s market sizing and forecasting process as it relates to the foodservice Industry Clean, industry and specific segments performance? tabulate, in both the Republic of Ireland Areas of analyse data Develop as well as Northern Ireland. growth/ by segment TRADE initial decline? INTERVIEWS Compare to market Usage change? previous estimate industry Business figures factors? Confirm Final growth CREATE MARKET MODEL Sizing Review additional data 6 Approach to Developing Consumer Insights • In August and September 2019 Key research objectives in this as part of Bord Bia’s partnership section of the research included: with Technomic to provide • Assessing the foodservice industry and consumer insights, consumer journey Technomic conducted • Identifying key consumer need qualitative consumer research states to provide a first hand look at the breadth of ways consumers • Uncovering latent consumer use foodservice in their daily needs lives, and the factors that • Reviewing the relationship influence their dining decisions. between at-home and foodservice occasions • This research builds on, and • Probing key consumer trends: explores key consumer trends – Technology identified in our 2018 research. – Health/diet – Sustainability – Value/price • Identifying and understanding different consumer personas. 7 Approach to Developing Consumer Insights • • Respondents were sampled In the second phase of the Dine Along Locations from Dublin and its research, Technomic and Bord neighbouring counties and Bia met with six of the bulletin • Apache Pizza Beauparc, represent a mix of board respondents for in-depth Rathdringh, Navan, Co. Meath demographics, lifestyle and ethnographic interviews in the • Han Sung Asian Market, 22 foodservice usage patterns. home, followed by accompanied Great Strand St, Dublin 1 Specifically, consumers were visits to foodservice locations of • The Court Yard Hotel, Main sampled to provide a range of their choosing. These interviews St, Leixlip, Co. Kildare usage across key foodservice were used to bring consumer segments. trends to life by capturing a • Bunsen, 3 South Anne St, Dublin 2 • In the first phase of the deeper understanding of research, respondents consumers’ daily lives and their • Gotham Café, 8 South Anne St, conducted online video diaries attitudes on key topics. Dublin 2 over the course of three days. In • Hot Sandwich Co., Unit 5 these video diaries consumers Ashbourne Town Centre, described their foodservice Ashbourne, Co. Meath attitudes and usage, and virtually led Technomic researchers (via smartphone recordings) to visits to the foodservice locations and segments that they regularly frequent. 8 About Technomic • Technomic is uniquely qualified growing marketplace. • Beyond Technomic, Winsight to conduct this assignment. • As part of Winsight, Technomic provides global reach and Since 1966, Technomic has been is positioned as a leader in insights through its media assisting clients with interests in multiple facets of the global (including Restaurant Business, the global food and beverage foodservice industry. Winsight CSP, Foodservice Director and industries to obtain a better provides customers and others) and Events (including understanding of the audiences access to the most the Global Restaurant marketplace and potential credible source of industry Leadership Conference, FARE, opportunities. market intelligence with top Outlook Leadership, FSTEC and • Technomic is considered to be industry print and digital media others). In November 2018, the leading research and assets, world class events, and Winsight acquired the rights to consulting firm specialising in Technomic’s channel-relevant the National Restaurant Show the foodservice or Out of Home strategic research and insights. that takes place every May in (OOH) industry, Technomic is Technomic’s global monitoring, Chicago. active in numerous includes ongoing coverage of 25 international OOH markets. foodservice markets globally Technomic’s broad based and is an integral part of expertise and second-to-none Winsight’s Global Restaurant knowledge of the OOH channels Leadership Conference that and categories establishes us as takes place every Autumn. an industry leader in this 9 Glossary of Terms Term Definition Compound Annual Growth Rate: The average sales increase over a specified number of years incorporating CAGR compound growth. Cash and Carry A large outlet where foodservice operators and small retailers can come to purchase supplies. Commercial foodservice Channels where catering for profit is the prime objective. Consumer Spending Consumer spending accounts for spending by diners within all foodservice channels. The direct supply of products to trade customers that buy centrally. Also known as “wheels only” in view of Contract distributors that provide logistic support (delivery) but do not buy or sell. C Store Convenience store where hot food or food-on-the-go is sold to eat and take away. The person to whom the supplier sells, usually the distributor or the operator, although the ultimate Customer customer is the consumer. Delivered Wholesale Supply of product to outlets via wholesaler delivery vans, often on a daily basis. Where operators buy from markets, producers or farmers direct rather than through intermediaries such as Direct wholesalers. A subset of limited service restaurants; menus may feature prepared to order items; menu items are typically Fast Casual made with fresh, high-quality ingredients; price point is between quick service and full service venues. Foodservice channel The acknowledged grouping of foodservice outlets by type (each of the main channels is defined separately). Food-to-Go Includes premade, ready to eat menu items sold through various retail channels and consumed off premises. Forecourt Convenience Convenience store operations that are integrated with a fuel forecourt. 10 Glossary of Terms Term Definition Full Service Restaurant Restaurants that offer table service and waiting staff. Institutional foodservice Often known as cost catering, channels where catering is a service provided for free or with a subsidy. IOI Island of Ireland. Restaurants offering counter service where customers generally order or select items and pay before Limited Service Restaurant eating. The meal reason for visiting a foodservice outlet, e.g. breakfast, lunch, dinner, coffee, snack etc. This Occasion can also be referred to as a “daypart”. The company or business running the foodservice outlet or chain Operator of outlets. Operator purchases represent the value of distributors’ sales to operators, including distributors’ Operator Purchases margins. Also referred to as QSR, this channel is a subset of limited service restaurants, often with value price Quick Service Restaurants orientation. How to get the product to the end consumer. Involves distribution Route to Market and logistics. The number of consumers visiting a foodservice outlet. Also known as footfall, it is a key operator Traffic metric. Transaction spend per occasion The average spend per person per foodservice visit. White table cloth restaurants, a sub segment of the full service White Table Cloth restaurant channel representing the more traditional and premium restaurant outlets. 11 SECTION 2: EXECUTIVE SUMMARY 13 14 15 Overall Assessment of the Irish Foodservice Industry 2019 In 2019, Irish consumers will Foodservice is closely tied to There remains three tiers of spend