1 Report Organisation

Section 1: Introduction 4 Category Segmentation 56

Section 2: Executive Summary 12 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 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 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 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 ; may feature prepared to order items; 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 . The reason for visiting a foodservice outlet, e.g. , , , coffee, 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 €8.55 billion on out of economic growth and tourism. success within foodservice. home food & (non-alcoholic) Industry executives commented how Overall, Dublin is seen as a market beverage. Of this, €6.32 billion is the past several years has seen growth unto itself, with continued strong spent in the Republic of Ireland and unlike any other time in recent past, growth as employers and tourists €2.23 billion is spent in Northern and 2019 growth has been “good”, but flock to the city. Secondary urban Ireland (with the value in Sterling not as robust as in previous years. markets also appear generally converted back to Euros). This Industry observers note that there are healthy—but perhaps not as robust— represents an annual growth rate of some cautionary tones starting to and these areas are still seeing 4.5% on 2018. appear headed into 2020. Many of positive growth in foodservice. Rural Ireland’s foodservice industry is these relate to Brexit - the uncertainty areas remain more challenged, and heavily oriented toward the around sourcing and the impact on restaurants and pubs in outlying commercial sectors; 91% of all tourism, and some of the impact is areas are not sharing in the same consumer spending is found in already being felt on the numbers as strong growth as other parts of the venues such as quick service visitors both from the UK and other country. restaurants, hotels, coffee shops and parts of the world are starting to taper Northern Ireland’s growth cafes, full service restaurants and off (and spend fewer nights in remains slower than the pubs. The non-commercial (or country). The restoration of the Republic of Ireland, but in 2019 institutional sector) represents the special 9% Hospitality VAT back to the North saw positive other 9% and consists of business 13.5% in ROI has also created an consumer spending increases. sectors such as business feeders, additional challenge to an industry Evaluated in its local currency education and healthcare, among that is striving to remain competitive. (Sterling), Northern Ireland’s others. foodservice industry has grown 3.6%, with strong urban performance (particularly in Belfast which continues to see benefits from investment and tourism growth). 16 Overall Assessment of the Irish Foodservice Industry 2019

Thirty-five percent (35%) of category leaders, accounting for 43% down since last year’s study; while consumer spend in the of the Institutional market. This is also overall IOI forecasts still show growth, Commercial channel is found in the area seeing the highest growth, as the industry should expect some Limited Service Restaurants tech firms continue to hire more maturity and deceleration through (LSRs), with 12% attributed to employees and invest in their 2022. Republic of Ireland is forecasted Full Service Restaurants (FSRs). foodservice offer. Healthcare is also a to grow 4.5% in spending per year, Pubs account for 17% of Commercial large player in the field, with hospitals while Northern Ireland is expected to foodservice spend (excluding alcohol). and other health facilities accounting grow 3.4% (as measured in Sterling). The fastest growing segment in the for 32% of institutional consumer Overall Island of Ireland growth is Commercial space is Coffee Shops (up spend. Education rounds out forecasted to be 4.2% per year as 5.9% in ROI and 5.3% in stg£ in institutional foodservice, with 20% measured in Euros through 2022. Northern Ireland) and Hotels (up 6.2% market share. Other sectors, such as in ROI and 5.4% in stg£ in NI). While defence and prisons also contribute to overall growth is still relatively strong, institutional foodservice sales, though these figures show a deceleration vs. are not high growth drivers within the growth rates from previous years. channel.

Within Institutional foodservice, Uncertainties are higher today growth remains lower than than in the recent past; industry Commercial foodservice, but is observers expect slower growth still generally positive. Business and going forward. Expectations for the Industry (business feeders) are the next three years have been revised

17 Macro Consumer Findings

1 2 3 Lifestyle-based needs drive a Consumers articulate a Consumers are accustomed to growing consumer reliance on different decision-making using technology to discover functional foodservice process and value equation for foodservice options and place occasions pleasure-related occasions orders online and inside the restaurant. In consumer bulletin boards and Consumers tend to be less price ethnographies alike, consumers sensitive in pleasure-related Consumers are amenable to the idea demonstrated how the logistics of occasions outside the routine of of more technology in the front of the everyday life can determine and everyday life. In contexts like “date house and back of house as long as it undermine meal planning, resulting night”, carefree spending becomes a doesn’t detract from the experience. in an increased need for reliable, part of how consumers differentiate convenient meal solutions away from these experiences to take a break At the same time, whether at the the home. from ‘real life’. Consumers cite a office canteen, fine dining or a tendency to stick to the same sandwich bars, consumers note that These ‘context-driven’ functional operators for indulgent occasions as positive human interaction provides foodservice occasions appear they tend to be more reliable and value as part of dining out. resilient to changes in consumer pose less of a risk when it comes to confidence, as consumers display ‘return on investment’. fixed behaviours and rely on foodservice for the fulfilment of basic daily needs.

18 Macro Consumer Findings

4 5 Customer service is a Little effort to prepare for differentiator uncertain times ahead Service was cited again and again as While Brexit was top of mind for all a differentiating factor. Instances consumers we spoke to, few were where consumers were most loyal, actively making preparations on how were service-driven operators, where it would affect their daily lives, citing hospitality included reciprocity and a three-year build up with little respect. Achieving a human action. The sentiment among some connection with the customer can consumers we spoke to is that a lead to greater loyalty than any item recession may be coming, but that it can generate. was unlikely to be as extreme as the last and they felt unlikely to impact their lifestyle.

Others accepted that saving up for a downturn would be the responsible thing to do, but the realities and expenses of daily life make it difficult to act with this type of intentionality.

19 Unmet Consumer Needs

1 2 about why they visit the establishments to which they are loyal, the most Healthy options for all ages Customisation common response was “because of the Respondents across all life stages Consumers cite a desire for increased service”. indicated an increase awareness and customisation in their foodservice desire to eat healthier . For some, options. The ability to prepare a meal this amounts to following a restrictive the way they want it represents a level of 5 diet that excludes certain ingredients or control that consumers associate with Reliable and competitive delivery calorie thresholds. For others, health at-home , and remains a services relates to good tasting, correctly whitespace for foodservice offerings. st rd portioned kids meals that are easily While 1 and 3 party home delivery consumed. services have grown rapidly in 3 popularity and reach, delivery remains a challenge for many who cite issues There are also those that think of health Access to authentic global flavours related to address, pricing and wait in terms of moderation. These Primarily in foodservice moments of times. consumers want their food to be fresh, indulgence, consumers reported a and while they will indulge in the desire to explore global flavours, Despite these challenges, consumers occasional fried food or routine treat including newer, more ethnically rd (e.g. specialty coffee), the norm is to authentic as well as flavours tend to use 3 party websites as a tool find better-for-you options for day-to- that have been largely normalised to the for brand discovery, exploring options day occasions. Irish consumer palette. in the area before ordering 1st party for take-away. This highlights the importance for operators to develop a While there are concepts in the presence on 3rd party platforms. marketplace that satisfy this need, the 4 availability of ‘good tasting’ and ‘good Perceived goodwill from for you’ options at an everyday operators affordable price remains a consumer Consumers expressed a desire to visit pain point. operators that they feel good about. This good feeling can be the result of elevated hospitality, transparent practices, or mutual respect. Indeed, most of those we spoke to when asked

20 Industry Imperatives

The Irish foodservice industry has been 2 4 growing at robust levels for several Contingency planning is key Keep an eye out for major years, but warning signs are on the disruptors horizon and industry participants Despite the fact that at time of writing, Brexit is still an unresolved issue, many Delivery remains one of the fastest- should be examining options and rd alternative strategic plans in the event companies have created contingency growing service areas, and 3 party of a possible slowdown. The following plans for alternative sourcing and cost service providers are often seen as are imperatives for companies involved control. More broadly, having an disruptive to the current situation. At in the foodservice industry: understanding of cost drivers and the same time, the consumer is the strategic alternatives should be a ultimate driver and this disruption will priority for all companies involved in continue to grow in importance. 1 the industry. Companies must address disruptors and ensure that their strategies adapt to the Keep the consumer front and industry as it evolves. center 3 The consumer is the ultimate driver for the foodservice industry; as conditions Identify solutions for the labour 5 crisis evolve in Ireland there may be some Don’t become complacent shifts in how consumers utilise Every segment in foodservice is facing foodservice. Broadly, occasions can be labour issues – shortages in qualified Years of growth have made growth seem separated into “entertainment” and help, up to and including culinary and inevitable, but becoming complacent “convenience” driven usage, and while management personnel. New and not investing in innovation/ convenience will always drive large technologies exist and value-added differentiation comes at a price. parts of foodservice, it is the products in the back-of-house that help “entertainment” portion that is more operators create “speed scratch” menu discretionary and may be more at risk. items are becoming more critical.

21 The Winning Foodservice Formula

• As the industry looks to maintain relevance, focus on 10 Factors that define the Winning Restaurant meeting consumer needstates and continue to grow, it will be important to keep the ‘Winning • 1. Local focus, with emphasis on • 6. Transparent, with strong Restaurant Formula’ in mind. provenance and providing food messages around ingredients, • Through its global work, with a story. values and sustainability. Technomic has identified 10 • 2. Commitment to culture, • 7. Simple, with a focus on what factors that – when excelled at – making the concept a preferred creates differentiation. create a resonating and lasting place to work for employees. • 8. Better/healthy fit, with an point of difference that drives • 3. Tech-enabled, using offer of items that offer consumers growth. technology to enhance the guest a perception of wellness. • All members of the value chain experience. • 9. Broader beverage focus, should understand how they can • 4. Community support, providing unique and craveable help create lasting value for working to integrate and be part of alcohol and/or non-alcohol consumers by focusing on the the community in which it that are carefully crafted and 10 areas that lead to success. operates. curated. • 5. Craft, focused on menu items • 10. Clean food, with limited that are perceived to have more additives and ingredients that care in their production. consumers perceive as “bad”

22 23 SECTION 3: SIZE AND SEGMENTATION OF THE IRISH FOODSERVICE INDUSTRY Total IOI Foodservice Industry: Consumer and Operator Spend

• The value of the Irish • Operator purchases represent • On an overall basis, operator foodservice industry for 2019 is the value of distributors’ sales to purchases represent 34% of the estimated to be €8.55 billion in operators, including value of all consumer terms of consumer expenditure distributors’ margins. These expenditures in the IOI and €2.9 billion in terms of purchase values are derived at foodservice industry. operator purchases. This the channel level by using food includes both the value of the cost ratios, which vary by Republic of Ireland and the foodservice channel. converted value (from Sterling 2019 Foodservice Industry Total IOI to Euro) of the Northern Ireland (€ Billion) foodservice market. • Note that when this report defines ‘consumer spending’, €8.6 this refers to actual consumer spending by diners within all foodservice channels. • In non-commercial channels such as education or healthcare, €2.9 a retail sales equivalent value is assessed so that these channels can be directly compared to commercial restaurant sales. Consumer Operator Spend Purchases

25 Commercial and Institutional Channels: Total island of Ireland

• Consumers spent €8.55 • Institutional channels include In 2019, Commercial channels billion on foodservice business and industry accounted for 91% of the value of total within ROI and NI in 2019. locations, healthcare consumer spending and 87% of the • Operators spent €2.9 facilities, educational total value operator purchases, while billion on food and institutions and other Institutional channels account for the beverage to generate those institutional foodservice remaining 9% of total consumer revenue figures. establishments including spending and 13% of total operator • The spending and purchases government organisations, purchases. These ratios have not within foodservice can be prisons and armed forces. changed since the last update in 2018. divided broadly into two channels: Commercial and Institutional. 9% Commercial 13% • Commercial channels include Institutional quick service restaurants, full service restaurants, Total 2019 Total 2019 pubs, coffee shops/cafes, Consumer Operator hotels and other commercial Spend Purchases foodservice establishments €8.55B €2.9B such as cinemas, theme parks, tourist attractions, sport venues 91% 87% and clubs, spas, events catering, recreational activities and cruises.

26 Commercial Channels 2019

• As noted on the previous page, 4% 6% commercial channels within IOI Traditional QSR represent the vast majority of the 13% value spend within the Irish 39% Pubs foodservice channel. In 2019 this Total 2019 Hotels figure was €7.79 billion in Spend consumer spending. €7.79B Full Service • Examining the Commercial 20% Coffee Shops/cafes channel in great detail, it can be Other Commercial seen that traditional Quick Service Restaurants (QSRs), pubs 18% and hotels are the three largest segments and collectively account 2018-19 for over 75% of the total 2019 Irish Foodservice Market Commercial channel. CAGR • Overall Commercial foodservice Limited Service (QSR, fast casual, food to go) 4.9% on the island of Ireland has Full Service Restaurants 4.6% grown 4.6% from 2018 into 2019, Pubs 2.0% a marked slowdown from figures seen in the more recent past. Coffee Shops and Cafes 5.7% Hotels & Accommodation 6.0% Other Commercial 6.2% Total Commercial 4.6%

27 Route to Market 2019

• The most prevalent route to • The Cash & Carry segment distributors operating in the market in Irish foodservice represents approximately 9% of North and vice-versa. continues to be wholesale the total value of purchases Acquisitions also continue to delivery, which accounts for delivered and grew change the face of the industry. 68% of operator purchases in approximately 4.8% YoY. • Brexit concerns are prevalent in 2019. • The contract “wheels only” distribution, given the possible • It also remains a fast growing channel grew by just under 1% disruption between Ireland and sector, with a YoY increase of over the review period. the UK and potential for 5.6% as full line distributors add • Wholesale distribution remains increased transportation time capabilities and grow their a very competitive segment of and costs of goods. overall share of spend at the the market, with ROI-based operator level.

9%

1% 2019 Irish Foodservice Route To Market 2018-19 CAGR 10% Total IOI Delivered wholesale Delivered Wholesale 5.6% F&B Contracts/Wheels Only Contracts/Wheels Only 0.7% 12% Purchases Direct Direct 1.8% €2.90B Cash N Carry Cash N Carry 4.8% 68% Retail Retail 3.5% Total 4.5%

28 Food and Beverage Split Revenue

Share of Total Revenue 2019 • In evaluating the sources of Total IOI Foodservice Market revenue for the Irish foodservice industry (total IOI), 77% of Limited Service 74% 26% turnover is derived from food, with the remaining 23% coming Full Service 86% 14% from beverage (non-alcohol Pubs 85% 15% only). Note that these numbers shift only slightly over time and Coffee Shops & Cafes 41% 59% are in line with 2018 figures. Hotels & Accommodation 81% 19% • The share of beverage revenue is higher in the Commercial Other Commercial 82% 18% channel, where Coffee Cafes and Total Commercial 77% 23% Limited Service (which includes takeaway and Food-To-Go) Business & Industry 75% 25% drive that percentage higher. Health 89% 11%

Education 78% 22%

Other Institutional 93% 7%

Total Institutional 81% 19%

Total 77% 23%

Food Beverages

29 Irish Foodservice Market Snapshot 2019 Total island of Ireland (IOI)

2019 Irish Foodservice Market 2019 Consumer 2019 Operator 2018-19 Total Outlet Spending (€M) Purchases (€M) CAGR (in €) Count 2019 Limited Service (QSR, fast casual, food to go) € 2,995 € 1,002 4.9% 9,035 Full Service Restaurants € 1,039 € 343 4.6% 3,750 Pubs € 1,415 € 410 2.0% 8,115 Coffee Shops and Cafes € 482 € 140 5.7% 2,445 Hotels & Accommodation € 1,531 € 520 6.0% 1,080 Other Commercial € 330 € 115 6.2% 1,050 Total Commercial € 7,792 € 2,531 4.6% 25,475 Business and Industry € 327 € 159 4.4% 2,095 Healthcare € 241 € 125 2.3% 1,140 Education € 152 € 67 3.0% 4,940 Other Institutional € 42 € 21 3.0% 200 Total Institutional € 763 € 372 3.4% 8,375 Total IOI € 8,554 € 2,903 4.5% 33,850 Republic of Ireland € 6,325 € 2,140 4.9% 27,205 Northern Ireland € 2,230 € 763 3.5% 6,645

30 Irish Foodservice Market Snapshot 2019 Republic of Ireland

2019 ROI Foodservice Market 2019 Consumer 2019 Operator 2018-19 Total Outlet Spending (€M) Purchases (€M) CAGR (in €) Count

Limited Service (QSR, fast casual, food to go) € 2,266 € 759 5.3% 7,075

Full Service Restaurants € 727 € 240 4.7% 2,975

Pubs € 1,039 € 301 2.4% 7,000

Coffee Shops and Cafes € 362 € 105 5.9% 2,100

Hotels & Accommodation € 1,157 € 394 6.2% 825

Other Commercial € 258 € 90 6.5% 750

Total Commercial € 5,809 € 1,889 5.0% 20,725

Business and Industry € 237 € 115 5.3% 1,560

Healthcare € 151 € 78 2.6% 655

Education € 95 € 42 3.2% 4,140

Other Institutional € 33 € 17 3.2% 125

Total Institutional € 515 € 251 4.0% 6,480

Total Republic of Ireland € 6,325 € 2,140 4.9% 27,205

31 Irish Foodservice Market Snapshot 2019 Northern Ireland

2019 NI Foodservice Market 2019 2019 2019 2018-19 2018-19 Total Consumer Consumer Operator CAGR CAGR Outlet Spending Spending Purchases (In Sterling) (in €) Count (£M) (€M) (€M) Limited Service (QSR, fast casual, food to go) £645 € 729 € 243 3.6% 3.5% 1,960 Full Service Restaurants £276 € 312 € 103 4.3% 4.2% 775 Pubs £333 € 376 € 109 1.2% 1.1% 1,115 Coffee Shops and Cafes £106 € 120 € 35 5.3% 5.2% 345 Hotels & Accommodation £330 € 373 € 127 5.4% 5.3% 255 Other Commercial £63 € 72 € 25 5.3% 5.2% 300 Total Commercial £1,754 € 1,983 € 642 3.7% 3.6% 4,750 Business and Industry £80 € 91 € 44 2.1% 2.0% 535 Healthcare £80 € 91 € 47 2.0% 1.9% 485 Education £50 € 57 € 25 2.8% 2.7% 800 Other Institutional £8 € 9 € 5 2.5% 2.4% 75 Total Institutional £219 € 247 € 121 2.2% 2.1% 1,895

Total Northern Ireland £1,973 € 2,230 € 763 3.6% 3.5% 6,645

32 3 Year Growth Outlook 2020-2022

• The foodservice sector particularly in key markets • Within Northern Ireland, the remains generally healthy, but such as Dublin, Galway and industry is expected to grow there was a clear deceleration Cork (among others), slower at approximately 3.4% per from 2018. In the first tourism growth can cause year over the next three years. quarter, growth remained some slowdown in (Note that the forecast is generally solid, but later into foodservice growth. shown in Sterling and does 2019 growth has faltered. • Another impact on growth not account for currency Overall expectations for the has been the restoration of conversion issues). next three years remain the special 9% Hospitality positive, but there are a great VAT back to 13.5% in ROI 2020-2023 Forecasted deal more concerns today that came into effect in Growth in Foodservice than there have been for January; this has created an Turnover (Consumer Spend) several years. additional challenge to an • Continued uncertainly around industry that is striving to the impact of Brexit remains remain competitive. IOI 4.2% high; to date, there has been • Within ROI, growth of most impact around tourism approximately 4.5% per year figures from the United is to be expected. The Kingdom and increased Commercial segments will ROI 4.5% concerns around product continue to drive the overall sourcing. industry, but there will likely • Tourism figures have been be some deceleration across slowing; given the central all segments of the business. NI 3.4% importance of tourism,

33 Growth Outlook 2020-2022 Total island of Ireland

2019 IOI 2019 Consumer 2022 Projected Total Change in Share of Growth Foodservice Market Spending (€M) Forecasted CAGR* Value (€M) Consumer 2020-2022 Spending (€M) Limited Service € 2,995 € 3,442 4.7% € 447 40% Full Service € 1,039 € 1,174 4.2% € 135 12% Pubs € 1,415 € 1,486 1.6% € 71 6% Coffee Shops and Cafes € 482 € 567 5.5% € 84 7% Hotels and Accommodation € 1,531 € 1,791 5.4% € 261 23% Other Commercial € 330 € 390 5.7% € 60 5% Total Commercial € 7,792 € 8,849 4.3% € 1,057 94% Business and Industry € 327 € 369 4.1% € 42 4% Health € 241 € 257 2.2% € 16 1% Education € 152 € 162 2.1% € 10 1% Other Institutional € 42 € 46 2.4% € 3 0% Total Institutional € 763 € 834 3.0% € 71 6% Total IOI € 8,554 € 9,682 4.2% € 1,128 100%

34 35 SECTION 4: CHANNEL ANALYSIS 37 Commercial Channels Limited Service Restaurants

• The limited service restaurant (QSRs) account for 77% of total Service and as well as the segment incorporates a consumer spending, with food- differences in revenue and number of sub-segments, on-the-go making up 16% and purchases between the including traditional quick fast casual accounting for 7%. Republic of Ireland and service restaurants (QSR), Northern Ireland. • The following pages show more fast casual restaurants, and detail on trends within each of food on the go (which the sub-segments of Limited encompasses convenience- driven items for takeaway in forecourt/ convenience operators and other grab-n-go 16% products found in retail operations).

• The total Limited Service 7% segment is valued at €3 Traditional QSR billion in consumer spending Limited Service Restaurants in 2019 throughout the IOI, Share of Consumer Spend Fast Casual with a value of €1 billion in €3B Food-on-the-go operator purchases. Traditional quick service restaurants

77%

39 2019 Review of Quick Service Restaurants (QSR)

Northern Ireland

 €607M in Segment Definition turnover  €200M in food • Traditional quick service restaurants (QSRs) are limited Republic of and beverage service in nature and are primarily characterised by Ireland purchases

offering counter service and/or drive thrus.  1,425 outlets  €1.712B in • These figures include both chain operators and turnover

independent operators (including chippers and other  €565M in food and small fast-food operations). beverage purchases

Key Trends  4,825 outlets

• Many large chains are moving more aggressively into non-traditional channels, including motorways and other retail channels. 2020-2022 Forecasted Growth in Quick • Straws and packaging continue to be areas that QSRs Service Restaurants (Consumer Spend) looking to reduce/eliminate. Single-use plastic is a focus area for reduction. 5.0% • Cashless technology is growing in importance. 4.5% • More emphasis on “fresh” EG meats (burgers), produce, 3.2% etc to position better against other segments.

IOI ROI NI

40 2019 Review of Fast Casual

Segment Definition Northern Ireland

 €48M in turnover • Fast Casual restaurants are also limited service, but are generally more upscale, investing more in the design  €17M in food and and ambiance of the operation. beverage purchases • Food quality is generally perceived to be higher, and the Republic of Ireland  110 outlets price points tend to be €8 or higher per person. Similar to traditional QSRs, Fast Casual restaurants are often  €144M in turnover systemised with limited, focused menus.  €51M in food and beverage purchases Key Trends  350 outlets • These operations tend to focus on fresh, healthier items with premium ingredients and as a result are able to command higher price points. • Continued evolution and focus on salads and other fresh-prepared foods is a growth driver. 2020-2022 Forecasted Growth in • Many fast-casuals cater to the customisation trend and Fast Casual Restaurants (Consumer Spend) offer a “build-your-own” approach to their menu. • Outlets tend to have a more limited menu with a focus on specific type of ; often with an ethnic focus (e.g. 5.2% 5.3% 5.0% Mexican). • Delivery and take-away is an important and growing part of turnover for many fast-casual operators. IOI ROI NI

41 2019 Review of Food-To-Go

Segment Definition Northern Ireland

 €75M in turnover • This segment includes convenience stores, supermarkets, and petrol stations with forecourt  €26M in food & beverage convenience stores. purchases Republic of

Ireland  425 outlets Key Trends  €409M in turnover • Traditionally, the food offer in this channel have been pre-packaged; the focus over the past several years is to  €143M in food and beverage bring a renewed focus on freshly prepared items. purchases • Forecourt convenience continues to position itself as a  1,900 outlets destination for both breakfast and lunch occasions. • Motorways a big focus area for key players. • Supermarket prepared foods is still a small part of this segment, but continues to grow at above average rates. 2020-2023 Forecasted Growth in • Coffee and other beverages are a huge driver for “grab- Food To Go (Consumer Spend) n-go” and represent a large share of overall visits. • High levels of competition reported in most markets 5.5% 5.7% with saturation in city centres and many players looking 4.7% for new avenues for growth.

IOI ROI NI

42 2019 Review of Full Service Restaurants (FSR)

Segment Definition Northern Ireland

 €312M in turnover • Full service restaurants generally focus on serving lunch or dinner. Sub-channels include both casual dining and white  €103M in food table cloth restaurants. and beverage purchases • Menus offer a complete range of items often using fresh Republic of Ireland  775 outlets ingredients—appetisers, soups, main courses and . Meals are often accompanied by a wine or beverage list.  €727M in turnover

 €240M in food Key Trends and beverage purchases

• Restoration of the special 9% Hospitality VAT back to 13.5%  2,975 outlets in ROI has challenged overall growth and also the cash flow of many restaurants. • Slowdown in tourism is also having an impact on restaurants in certain ROI cities. • Claims of reaching saturation point within Dublin; number 2020-2022 Forecasted Growth in of eateries has “exploded”, making incremental growth more challenging. Full Service Restaurants (Consumer Spend) • Rising costs, particularly rent, is impacting profitability. Along with VAT rate increase, operators have found it hard 4.2% 4.3% 3.8% to pass along price increases to cover increased costs. • Staffing/labour and shortage of chefs remain an ongoing issue. • Engaging with home delivery is increasingly a necessity but cost/margin structure are concerns for operators. IOI ROI NI

43 2019 Review of Pubs

Northern Ireland Segment Definition  €376M in turnover • Licensed pubs includes drinking establishments that are outlets built specifically for (and largely dependent on)  €109M in food the sale of alcohol for on premise consumption. and beverage Republic of purchases • Pubs are characterised by a bar service and are often Ireland  1,115 outlets seen as social meeting places, rather than a place of pure  €1.04B in consumption. turnover

 €301M in food and beverage Key Trends purchases

 7,000 outlets • Most pubs are still drinks-led, but are increasingly adding food (which tends to be the growth area for pubs that have a food offer). • Urban pubs (especially Dublin-based) appear well- 2020-2022 Forecasted Growth in Pubs positioned for growth; other areas of Ireland are seeing (Consumer Spend) lower growth. • driving laws are having a big impact, particularly on rural pubs. 1.6% 1.8% • Non-alcohol options growing in importance; the 1.2% appearance of Ireland’s first alcohol-free pub in Dublin suggests consumer demand for “mocktails” and no- alcohol drinks is gaining acceptance. IOI ROI NI

44 2019 Review of Hotels & Accommodation

Segment Definition Northern Ireland

• Food and beverage programmes in the hotel and  €373M in accommodation channel are heavily focused on the hotel turnover part of the channel, which accounts for 95% of the  €127M in food and market. beverage Republic of purchases • Other accommodation forms, such as guest houses, are Ireland

included, but only where they are large enough (10  255 outlets  €1.16B in turnover rooms or more) and these are few in number. This excludes B&Bs as well.  €394M in food and beverage purchases Key Trends  825 outlets • Hotels are heavily tied to tourism; 2019 F&B revenue growth has been slower in 2019 than in previous years. • Breakfast is the key daypart focus as this touches the highest number of guests; most operators report steady guest participation, but little growth here. 2020-2022 Forecasted Growth in Hotels & • business appears relatively strong with personal events and business events both still showing Accommodation F&B (Consumer Spend) growth (particularly in big urban markets). • Greater weakness in overall F&B business outside major 5.4% 5.5% cities (where food plays a more central role in 5.0% importance to the overall hotel business).

IOI ROI NI

45 2019 Review of Coffee Shops/Cafes

Segment Definition Northern Ireland

• Coffee shops and Cafes are quick service restaurants  €120M in without table service that emphasise coffee and other turnover

hot beverages. Typically there is a limited selection of  €35M in food and beverage cold and hot foods such as pastries, sandwiches and Republic of purchases breakfast items on offer. Ireland

 345 outlets • Their distinguishing feature is that they allow customers  €362M in to relax, work and socialise on their premises for long turnover periods of time, without the pressure to leave promptly  €105M in food and after eating. beverage purchases Key Trends  2,100 outlets

• Coffee remains an extremely popular and growth- oriented beverage. • Higher prices as ROI operators pass along VAT increases. 2020-2022 Forecasted Growth in • Some operators experimenting with delivery services Coffee Shops/Cafes (Consumer Spend) such as . • Sustainability initiatives are front and center as single- 5.5% 5.7% use disposables – especially coffee cups – fall out of 5.0% favour.

IOI ROI NI

46 2019 Review of Other Commercial Foodservice Operations

Northern Segment Definition Ireland

• This channel is diverse and comprises cinemas, theme  €72M in turnover

parks, tourist attractions, sport venues and clubs, spas,  €25M in food and beverage event catering, recreational activities and cruises. Republic of purchases • The largest sub channel is represented by sporting Ireland  300 outlets events; the other key sub-segment is the travel channel  €258M in which includes on board and terminus catering for turnover

flights, trains, ferries and buses.  €90M in food and beverage purchases

Key Trends  750 outlets

• Many of these venues are highly dependent on tourism – both internal from Irish consumers and from external tourists. There are some concerns about future growth 2020-2022 Forecasted Growth in as visitor numbers may start to flag. Other Commercial (Consumer Spend) • Urban centres putting more emphasis on festivals, which has helped support overall growth figures. 5.7% 6.0% 4.6%

IOI ROI NI

47 Institutional Channels 2019 Review of Business and Industry

Segment Definition Northern Ireland

• Business and Industry (B&I) is defined as catering to the  €91M in turnover workforce and includes food offered within offices, factories and  €44M in food and remote sites. beverage purchases • Menus are generally offered in three formats: fixed menus Republic of (mostly in factories), self-service menus offering choice (mainly Ireland  535 outlets in office catering units and canteens/), and grab-and-  €237M in go or vending operations offering predominantly beverages, turnover adjacent to their place of work.  €115M in food and beverage Key Trends purchases

 1,560 outlets • Relatively strong growth as employment remains strong in ROI; slightly less robust in NI. • Tech firms leading the way in trend-setting, creating high quality dining options to build loyalty and keep employees on site. 2020-2022 Forecasted Growth in • Non-tech firms are less dynamic, but seeing some moderate Business and Industry (Consumer Spend) growth. 4.9% • Food is often viewed as a differentiator in recruitment and 4.1% retention. • Sustainability and health/wellness continue to be areas of 2.0% emphasis for employee feeding programs. • More interest in plant-based proteins in this sector. • New offices often don’t have ; as a result there has been a growth in central usage. IOI ROI NI

49 2019 Review of Healthcare Foodservice

Northern Ireland

 €91M in turnover Segment Definition  €47M in food and • Hospitals are institutions that serve and feed patients beverage purchases undergoing medical care, their guests, and the staff. Republic of • This segment includes hospitals, rehab clinics, and Ireland  485 outlets retirement homes. It is further sub-classified into  €151M in turnover

private or public hospitals which, depending on the  €78M in food and rating will offer different culinary experiences. beverage • Additionally, they offer customised menu alternatives purchases for specific diets.  655 outlets

Key Trends

• Little growth in patient feeding; more investment and growth in retail and à la carte operations catering to visitors and employees. 2020-2022 Forecasted Growth in • HSE growth is flat; private healthcare organisations Healthcare (Consumer Spend) investing more in foodservice. • Some attempt to establish branded concepts to compete against high street and keep visitors and guests on site. 2.2% 2.4% 1.8%

IOI ROI NI

50 2019 Review of Education Foodservice

Segment Definition Northern Ireland

 €57M in turnover • Primary schools, secondary schools and universities make up the three key operator segments. They are in  €25M in food and the business of providing food and beverage services to beverage purchases students and faculty in their place of learning. Menus Republic of are generally offered in two main formats: fixed menus, Ireland  800 outlets or /self-service, although ala carte operations  €95M in turnover

are also included.  €42M in food and • The channel covers state, religious and privately funded beverage and owned institutions purchases  4,140 outlets Key Trends

• Growth generally described as “slow” or “flat;” sector is highly driven by demographics. • Plant-based protein movement seeing strong growth in 2020-2022 Forecasted Growth in this segment; sustainability initiatives also gaining Education (Consumer Spend) prominence. • Labour issues remain a challenge; more focus away from culinary creations and toward pre-made or “speed 2.1% 2.2% scratch” applications. 1.9%

IOI ROI NI

51 2019 Review of Other Institutional Foodservice Operations

Northern Ireland

 €9M in turnover

 €5M in food and beverage Republic of Segment Definition purchases Ireland This channel includes Government organisations and in  75 outlets  €33M in particular prisons and armed forces (military , in- turnover field canteens and soup kitchens).  €17M in food and beverage purchases

 125 outlets Key Trends

• Both prisons and the armed forces have large manpower at their disposal and view catering as an efficient use of 2020-2022 Forecasted Growth in Other “built-in” labour pools. Institutional Foodservice (Consumer Spend) • Highly focused on cost containment.

2.4% 2.5% 2.0%

IOI ROI NI

52 53 SECTION 5: PRODUCT INSIGHTS Overarching Foodservice Product Trends

1. Margin pressure remains a to those consumers looking to for wider to sourcing products from the UK. This challenge for operators of all choices when eating out. may include both focusing more on types Irish goods as well as evaluating Food costs tend to make up about 1/3 3. Beverages remain a driver for continental Europe or even North of the cost of a menu item, and while growth America as a source for certain products. the costs continue to see increases – Beverages – especially hot beverages – particularly items sourced from outside remain a solid strategy for growth, and Ireland – other costs such as labour operators continue to invest in high 5. Chilled foods remain on trend and rent are rising faster than the quality coffee and programmes. The continued demand toward fresh by operators’ ability to raise prices. “Virgin” cocktails are also becoming consumers has meant that chilled Coupled with the ROI VAT increase at more popular across segments that items continue to exceed overall the beginning of 2018, operator have been drinks-forward, including industry growth, and chilled items now profitability continues to be under pubs, hotels and full-service represent 59% of total purchases made. pressure. restaurants. Frozen space remains limited back-of- house and operators have switched 2. Vegan/vegetarian options over to chilled wherever possible. growing in importance Grocery/ambient products are growing 4. Alternatives to sourcing from slower than average. Operators of all types continue to see UK being sought the need for offering vegan options. While many acknowledge that strict Uncertainty remains regarding Brexit veganism still only accounts for a small in 2019, but operators and distributors % of consumers, it is important to cater both acknowledge that they’ve been actively working to identify alternatives

55 Product Category Segmentation

• Proteins account for the greatest the broader issues described been impacted by a general move share of operator food purchases elsewhere in this report. There away from single use disposable (39%). Bakery, fruit and has been some food cost inflation items. vegetables, and beverages as Brexit impacts the supply • The figures shown here include represent the next leading shares. chain, and many industry both ROI purchases as well as These figures remain largely participants worry about future food and beverage purchases unchanged from the past several price shocks depending on the made in Northern Ireland and years. outcome of Brexit. converted to Euro. • Purchases have been growing • Note that “all other” includes under 5% and are impacted by non-foods as well; growth has 2017/18 Growth in Operator 4% Purchases 8% 5.2% 5.0% 4.5% 4.6% 4.5% 4.2% 16% Share of 39% Operator 2.5% Purchases 2019

15% Proteins Bakery Fruit/Veg Beverage Dairy All Other Total 18% Proteins Bakery Fruit/Veg Beverage Dairy All Other 56 Foodservice Product Category 2019 Operator Share of Total (%) Purchases (€ Product by millions) Value Fruit & Vegetables € 444 15% Poultry € 339 12% Beef € 313 11% Fruit, vegetables, poultry, beef and bread/bakery (non-sweet) account for Bread/Bakery € 305 11% nearly half of operator purchases. These Bacon € 244 8% figures haven’t changed significantly since last year’s study. Dairy € 236 8% Sweet Bakery € 158 5% The figures shown here include both ROI Pork € 116 4% purchases as well as food and beverage Seafood € 90 3% purchases made in Northern Ireland and converted to Euro. Grocery € 47 2% Confectionery € 34 1% Desserts € 36 1% Lamb € 24 1% Beverage € 454 16% All Other € 64 2% Total € 2,903 100%

57 Temperature Mix

• Fresh continues to be a focus for 20% operators throughout the foodservice sector, and as a result there continues to be a Share of gradual shift in the share of Operator chilled food and beverage 59% Purchases purchases by operators. 2019 21% • Over the past year, the share of chilled has grown by 1 Frozen percentage point (which equates to an annual growth of 5.7%), Ambient while frozen has remained relatively constant and ambient Chilled has declined by a percentage 20% point. • Note that these figures are based on the Euro currency and Share of include Northern Ireland 57% Operator purchases which have been Purchases converted from Sterling to Euro. 2018 23%

58 59 SECTION 6: DEEP DIVE ON THE IRISH FOODSERVICE CONSUMER KEY CONSUMER FINDINGS

61 Name Age Gender County Urbanicity Household Occupation Composition Respondent Other adult family Bukky 20 Female Dublin Urban Student members Other adult family Junior Summary Niamh 23 Female Kildare Suburb members professional Junior Sophie 27 Female Dublin Urban Just myself professional

John 30 Male Dublin Urban Just myself Skilled worker

• 14 Respondents sampled from Intermediate Catherine 30 Female Dublin Urban Just myself Dublin and its surrounding professional Friends/non-related Junior counties. Catriona 30 Female Dublin Urban roommates professional • Respondents were screened for Minor Children under Junior Sorcha 31 Female Meath Rural area a balance of demographics, 18 professional location and occupation. Junior Vinny 31 Male Kildare Town Spouse/Partner only • Please note that the following professional consumer findings should be Senior Suzanne 33 Female Meath Suburb House treated as indicative, given the professional Senior small sample size involved. Mark 34 Male Dublin Urban Spouse/Partner only professional • Respondents in bold were Spouse/Partner with Junior selected for in-person Ronan 38 Male Kildare Rural area Minor Children under professional dine-alongs with 18 living at home

Technomic and Bord Bia. Spouse/Partner Minor Peter 38 Male Dublin Suburb Skilled worker Children under 18

Spouse/Partner with Intermediate Damien 48 Male Meath Town Minor Children under professional 18 living at home Spouse/Partner with Minor Emer 56 Female Kildare Suburb Children under 18 living at Skilled worker home

62 Respondent Frequency of Foodservice Usage by Channel

Full Service Restaurant 3 3 6 2 1

Coffee Shop 6 4 3 1 1

Supermarket 1 3 5 3 1 2

Petrol Station 5 5 2 1 2 Daily C-Store 2 9 3 1 2-6 days per week Quick Service Restaurant 1 7 3 3 1 Once a week Once ever 2-3 weeks Leisure/recreation 1 2 1 6 2 2 1 One a month Hotel and Accomodation 2 4 1 3 4 1 Once every 2-3 months Less than every 3 months Pubs 5 4 1 4 1 Never Transportation 1 2 1 2 6 2

Business & Industry 1 1 2 2 1 4 4

Healthcare 1 1 1 4 8

Education 1 2 1 11

63 Despite concerns over the national outlook, consumer foodservice usage shows no signs of slowing Consumers acknowledge doubts stressful job…I’ve also purchased Chief among these needs are about the health of Ireland’s my own place so I do find that I’m reliability, ease and convenience economic outlook, driven by on my own, I’m not on house share within the foodservice experience. instabilities brought on by Brexit. anymore…I’m not very confident Consumers indicate that they [about the economy]…I would “My overall reasons for purchasing know they ought to be making prefer to save than spend money.” food and beverages rather than arrangements for a downturn, –Catherine, 30 dining at home would mainly be for however few indicate any real the convenience factor. As time goes change in behaviour. Functional foodservice occasions on, there are more responsibilities. serve to alleviate the stress brought I find myself using convenience Some note the enduring nature of on by the demands of consumers’ foods more often…there are a lot of the Brexit issue, refusing to let everyday lives. things going on in terms of study, politics dictate their daily lives, professional life, and so on that required that. while others have lifestyles that As the economic outlook and simply do not allow for decreased consumer lifestyles become Things are very tumultuous at the usage of foodservice. simultaneously de-stabilised, rather moment, Brexit is a couple of than bracing for a downturn in months away…the economy is very “Definitely I purchase a lot more consumer spending, it is important stormy now at the moment and no food and beverages myself. My life for foodservice operators to be one really knows what’s around the has completely changed within the proactive in serving the needs that corner.” last year. Number one, I’ve got a consumers will increasingly look to –Mark, 34 much busier job and I have to work fulfill away from the home. through an awful lot, it’s a very demanding job, a very Reliability is key as consumers look to integrate foodservice occasions into their routine In line with decision-making based “For me, quick-service restaurants there are quality standards that feed on the contextual needs of are always easiest and the best, into the consumer definition of consumers’ lives, convenience is a only because they are convenient to convenience that have the ability to foodservice driver worth exploring get to coming home from work on a drive repeat visitation and form in-depth. late afternoon…I prefer quick habitual behavior. service restaurants simply because Consumers will often talk about I can see the menu, exactly what I “Convenience is a big thing, plus the convenience in the same breath as want, I know what I want. It’s value. With a well known notions of consistency. This quick and usually I’m in and out in brand…you know what you’re entanglement between convenience less than five minutes with the food getting, it’s a standard quality of and consistency speaks to two I want…it is convenient, and it is food that you always like and you equally important facets of easier than having to go home and always enjoy. So that would be the consumer expectations when it a dinner. That’s the thing main factors of dining out…we’re comes to convenience: ease and about it – convenience.” very routine in the way we quality. –Ronan, 38 structure our weeks and months.” –Damien, 48 In the first sense, reliability has to Consumers do not always behave do with ease – the foodservice rationally and tend to take the Note that this standard does not option that is on the way home and easiest (versus the best) path to necessarily imply higher-quality takes little time out of the day. achieving a desired outcome. Key to offerings or optimal ambiance, but harnessing this principle is rather it delivers a regimented, understanding how consumers replicable experience based on define the outcome they hope to previous visits. fulfill. In addition to ease of use, 65 The dual functions of health and social responsibility put enhanced focus on vegetarian and plant-based alternatives

Vegetarian and plant-based At the same time, the growing trend a restaurant can cater to that. But foods are top-of-mind for many of vegetarian and vegan offerings most of them don’t, and I don’t think consumers, especially as these prompts some to question they understand…it’s not even alternatives begin to emerge within operators’ intentions behind this genuine, it’s just for the fact of certain markets. Operators should shift. Moving forwards, solidifying making more money, or for expect these options to grow as brand messaging and publicity. It’s not like they truly get consumers drive demand, for both communication around clear, to the source of how to make it sustainability and health reasons. demonstrable values will be critical, better for people, to cater to those especially as a younger consumer needs of certain customers that they “When I go out I’m always looking base grows support for a variety of have.” for vegetarian options, but it’s very social responsibility initiatives. –Bukky , 20 limited here. I think nowadays a lot of people are interested in “I feel like many companies lately vegetarian options…if there was a are trying to follow along with the great vegetarian dish or two I vegan, plant-based, vegetarian would eat out more, definitely. options now but they’re not doing it More varied salads and vegetables, too well. It’s something that I had I think that’s where a lot of people difficulty with when I was vegan are heading these days, anyone before and someone that has an that’s health-conscious. issue with dairy and certain meats –Emer , 56 that I can’t eat, it is nice to see when

66 Consumers are highly invested in the brand-driven experience of concepts they frequent Consumers are looking to impression, they want you to come “It’s kind of open-plan, it’s loud, it’s make a connection with back, they want you to leave talking social, the food is class. I like the restaurant brands, pointing to about it, they want you to spread way it comes in segments, also the importance of messaging that the word…I just find that when you’re getting a slice of another goes beyond the menu. you’re dealing with the smaller culture cause it’s Japanese food and restaurants, they’re just more they come to your table and they As priorities and trends within personable.” can explain things…they make it foodservice continue to shift, it is –Sophie , 27 very accessible and very fun to eat, imperative for operators to align you know? They can kind of guide themselves with a strong brand you along and turn eating the In addition to brand positioning, exotic kind of stuff on the menu into message that stands out among experiential and interactive proliferating competitors, yet a bit of an experience in itself so it’s elements drive consumers to kind of playful in that sense and remains genuine and connected to participate further in their their customers. everybody is talking about the foodservice experience. Global food…so it all just becomes kind of food and beverage items are one way recreational activity, something “Personally for me when it comes to to provide differentiation, while that’s just kind of fun when you get foodservice I much prefer the employees also play an important there to engage in.” role in engaging consumers and smaller, more independent –John , 30 restaurants as opposed to the sparking conversations. bigger chains…they know they’re competing against the bigger chains, they want to make an

67 Consumer trade-offs between quality and convenience may give way to demands for an optimised experience of both

Currently, some consumers see expect consumer standards to themselves making a encompass more than a single “I’m at a drive-thru, it’s the only compromise within solution. thing that’s open at midnight or foodservice in which they later where I live. I actually wish prioritise either quality or “I’ll either have to compromise on there was more options because I convenience. going out of my way over getting don’t necessarily love it, it’s purely something tasty and good quality, chosen because it’s the only option I In the case of this specific so that’s something that I’m feel. I definitely wish there was foodservice journey they were compromising on.” more drive-thru options and 24- prompted to take, consumers cite –Catherine , 30 hour options outside of Dublin.” that proximity to a convenient –Niamh, 23 foodservice solution took them away from a concept that held more “I have decided to go to a appeal in terms of higher-quality or outlet because I had ended up health-focused options. basically doing some shopping and it’s the closest thing to me here…so that’s disappointing considering I As options continue to proliferate originally had the plan to go with a and restaurant brands seek to more healthy option, but it did the differentiate themselves from trick.” competitors, operators should –Mark , 34 While foodservice can play into consumers’ routine, it can also act as an excuse to behave differently

In the case of some consumers, “Especially over the last two years, for a casual but peaceful moment to contextualising a foodservice I try to eat more veggie-packed herself. occasion as a novel experience meals and vegan meals. If I’m out, motivates them to act outside generally the price of a vegetarian “My main motivation was just to of everyday dietary habits. meal is going to be the same as one chill out for a few minutes and get a with meat and if I’m heading out to little bit of headspace. Wasn’t after Within a larger context, however, dinner, I want to make sure that I a big meal, just something quite positioning foodservice as a special get value for money, and that I’m small, generally a cup of tea would occasion can put an increased full and satisfied and very often I been just fine, wasn’t really going emphasis on the importance of wouldn’t feel that way choosing the there for the purposes of filling creating value. This suggests that vegetarian option.” myself up.” operators will have to consider how –Catriona, 30 to position key innovations and - Sorcha, 31 trends so exceptions can be made by In addition to getting outside of consumers who feel empowered, their culinary routines, foodservice rather than restricted, by their visits also provide consumers with a choices. venue to act differently, or remove themselves from the stress of daily life. Sorcha, for example, visits the restaurant of a local boutique hotel

69 Consumer expectations are framed around positive past experiences

When it comes to specific “I was just looking for a certain menu items that consumers quality, I suppose, and it wasn’t have ordered in the past, there. I would not feed food that expectations tend to be set was that greasy to a child, not even around their best experiences. myself, let alone a child.” Consumers remember times when –Sorcha , 31 restaurant brands executed their orders to a high standard, and use these best-in-class examples as a Outside of food quality, menu and point of reference. portion size variety are other factors consumers reference in their foodservice experience, Moving forwards, consistency especially within segments where will be key in driving brand packaged foods see more focus. loyalty, as positive experiences only serve to amplify occasions that do not meet the same standard. “They didn’t have the portion size that I wanted, I think just because of the day of the week they “I got what I ordered, it’s just the obviously hadn’t got stuff in quality of what I ordered wasn’t to stock…really disappointed that they the standard that I’m used to didn’t have it because I was really getting.” looking forward to having it.” –Bukky, 20 –Suzanne , 33

70 71 Consumer Feedback on Critical Issues Critical Issues Facing Foodservice

As identified in 2018, there are a The following pages discuss The four trends probed were: number of long-term trends that consumer reactions to these key 1. The role of technology in the were identified as Critical Strategic issues, as well as including operator foodservice occasion Issues and that should be addressed examples that highlight the trends, 2. Health and wellness impact by all participants within the and some key take-outs per trend. on the foodservice occasion foodservice industry. 3. Growing importance of sustainability During the Dine-Alongs, consumers 4. Demand for, and definition of were probed on four of those critical value. issues that were most relevant to the consumer and their journey in deciding what, where and how to dine out-of-home.

73 TECHNOLOGY

74 Technology Sound Bites

Consumers look to technology “You have things like apps that you Moving forward, consumers to streamline the process of can use to order food, so for expect their dependency on ordering and receiving food. example you’ve got Deliveroo, technology to grow, especially as Mobile and online amenities have you’ve got Just Eat, you have their increasingly busy schedules undergone constant evolution over websites to look at food menus, necessitate innovative solutions. the past few years, encouraging that’s very important…that seems perception of off-premise to be the way the world is going…a “If there were technology advances capabilities as more of an lot of restaurants are using apps so for me, I would go to a place expectation rather than a perk. the technology side of it definitely immediately. For example…the self- has improved and has improved service outlets completely changed “With the introduction of new peoples’ time management.” my opinion about going to a place I smart phones making it as simple –Suzanne, 33 didn’t like. If that was brought as possible for the consumer to In addition to increasing foodservice forward and even advanced order the food through online and accessibility, technology has also technologically, in my opinion, it social media…to order food as easy created new paths for would completely change my as possible. That’s where I see the foodservice brand discovery consumer habits. So basically, self- primary incentive …if you’re able to through digital word of mouth and service kiosks would be a huge cut down the steps for a consumer social proof of past visits. thing, even more knowledge-based to go “I’m hungry” to it arriving at apps that know your habits more, the door or them getting it in front “I don’t recall being caught by an that could deliver to work or of them is the way to go.” ad…but more so feedback from outside work, or had your order –Damien, 48 someone that had visited the ready to go…that is completely restaurant before me” something that I’m interested in.” – Vinny 31 –Catherine, 30

75 Technology: Operator Spotlight

• Tech is becoming a more important part of restaurant experience, and big chains are willing to spend more to enhance their digital offerings and to better incorporate technology. • McDonald’s recently acquired Dynamic Yield and Apprente - • Apprente is a voice-based app intended to make the drive thru ordering system more seamless and easier. • Dynamic Yield is an artificial intelligence (AI) platform that will enable the chain to better target consumers depending on factors such as weather, restaurant traffic trends, time of the day, and other factors.

76 • 3rd party delivery continues to virtual restaurant brands that only Technology: grow and expand on the island of reside on the Deliveroo platform. Ireland. • Meanwhile, Just Eat reported a Operator • Earlier in 2019, Deliveroo 25% increase in orders in the 3rd announced that it was adding over quarter of 2019. It has also Spotlight 1,000 restaurants to its platform. announced plans to merge with • It has also launched Virtual Brands Takeaway.com, a Dutch rival, as it in Ireland – this allows current looks to continue to consolidate restaurant kitchens to re-purpose and grow its European operators. its space during off hours to create

77 Technology Take-Outs

Key Trends Implications • In general, consumers indicate that technology is • An increased reliance on delivery may change not well-integrated into their foodservice experience, only the digital experience of an operation but also aligning with a growing focus on off-premise. the physical layout of the store, as brands continue to • A desire to save time and optimise convenience are explore specialised formats such as drive-thru only key drivers of tech amenity usage. locations and ghost kitchens (professional kitchens set up for the preparation of delivery-only meals). • In addition to delivery services, additional capabilities like self-service kiosks and predictive • The prevalence of popular apps such as Just Eat, functions spark consumers’ interest. Deliveroo, and will likely pave the way for additional services to further enhance the everyday • Significant pain points remain that have to be foodservice occasion outside of delivery. addressed prior to widespread adoption of delivery services. • Potential services to explore include updated ordering options (via text message, via wearable tech, etc.), pay-ahead functions and touch-screen ordering.

78 HEALTH/DIET

79 Health/Diet Sound Bites

Consumers reference online restaurant…I’ll look to make sure when we’re going out to eat, that searches as a primary avenue there’s a vegetarian option or a few there’s gluten-free and lactose- to inform them of operators and vegetarian options.” intolerant options on the menu.” menu offerings that accommodate –Niamh, 23 –Emer, 56 different dietary criteria. Clear “I do find it helpful to have labeling on menus benefits both nutritional information and calorie While consumers with strictly larger parties likely to have a wider counts on menus, and I will suss out range of restrictions and individuals vegetarian and vegan preferences a menu off a place I’m going to eat remain in the minority, consumers looking to meet their own standards at before dining there, that’s really of health-conscious eating. expect either the ability to find just a way to sort out the healthiest offerings free from certain option.” ingredients or at a minimum, the “I always like it as well if they have –Catriona, 30 transparency to understand what their health laid out [online], I like “I like to look for healthier options ingredients are in items when dining to know the amount of sodium lately so I’m interested if there are out. because high blood pressure runs in vegetarian or vegan options, or a my family.” good range of salads and –Bukky, 20 quiches…and then in my family we “I have a few friends that are have two gluten-free people…and vegetarians and so usually when also I have two lactose-intolerant I’m looking for a new people…so we have to consider that

80 Health/Diet: Operator Spotlight

Health-oriented restaurant chain plans rapid Irish expansion.

• LEON, a UK-based chain well known for its health-oriented menu, is opening two units in Dublin in 2019 and has plans for up to 20 over the next five years. • LEON sees a gap in healthy menu items in Ireland that are not necessarily salad-based.

81 Health/Diet Take-Outs

Key Trends Implications

• Accessibility continues to play a key role in the • Transparent, convenient resources that inform and consumer experience, this time in the context of educate increasingly digital-savvy consumers are nutritional information. Many of today’s consumers crucial. expect the ability to make informed decisions even before visiting a foodservice outlet. • Operators can start small by calling out high-level claims like gluten-free, and work up to more in-depth • Detailed menu information appeals to consumers menu information such as calorie counts and other who have special dietary needs as well as those specific nutritional facts. looking to prioritise healthier options.

82 SUSTAINABILITY

83 Sustainability Sound Bites

When asked to define sustainability “In terms of sustainability then, as huge priority for me but if I was to in their own words, some regards to how I define it, it’s that see that the place is making an consumers call out the general it’s ethically sourced…that it is effort I’d take that into account. I goal of environmental produced so in such a way that it like to see places where they’re not conservation. While this can continue into the future, and it using straws or using the paper broadened and generalised scope of doesn’t destroy habitats, things like straws instead.” sustainability seems to amplify the that…people feel they have a moral –Niamh, 23 appeal of moral and ethical or ethical obligation and are willing “For me, sustainability is solutions, at the same time it takes to pay more to ensure that their restaurants having processes that away from definitive actions that food adheres to these standards.” reduce waste, like food waste, their consumers can take. –Mark, 34 use of water, electricity, and then choosing ingredients and produce “Whatever way you can make food At the same time, others have that is Irish-grown and plastic-free just good and appealing and specific initiatives in mind as far as possible, that has low food ethically made…something that when thinking of sustainability, miles…another aspect of that would doesn’t cause too much namely waste reduction. be providing food that is package- environmental damage, but still is “Only in the last year has free, so no plastic packaging…we absolutely delicious.” sustainability been something I’ve need to reduce, not just recycle.” –John, 30 taken into account when choosing –Catriona, 30 restaurants. It still wouldn’t be a

84 Artificial Intelligence to aid in system to use cameras and smart Sustainability: food waste scales to recognize and keep • Food waste continues to grow as track of food items being an issue for both operators and disposed of, helping commercial Operator consumers. kitchens reduce the waste. • Food waste is seen as avoidable • Currently in test in Ikea in Spotlight and an issue that is “solvable.” Ireland and the UK. • Winnow Vision has developed a

85 • Trinity College and its caterer • In May 2019, Sodexo announced Sodexo has introduced new plant- the deployment of its data-driven based menu items, following a food waste prevention programme, Sustainability: successful 2 day pop event. WasteWatch with the objective to deploy the programme to all • An existing member of Bord Bia’s relevant Sodexo sites by 2025. Operator Origin Green programme, Sodexo is also the first global Spotlight company to connect its financing to action to prevent food waste.

86 Sustainability Take-Outs

Key Trends Implications • Generally, a divide exists in consumer definitions of • As sustainability becomes a growing expectation, sustainability. Some understand sustainability in operators should expect consumers to cultivate a terms of its ties to moral and ethical solutions, while deeper understanding of what this means to them. others look to specific initiatives and actions. • Demand for clear and measurable indicators and • Given the nebulous definitions of sustainability, initiatives will likely grow. consumers find it difficult to prioritize. • Focusing initial efforts on packaging developments • There is desire to act sustainably, but pain points will benefit operators as consumers see this as a top- remain in practicing responsible environmental of-mind issue, especially due to its physical consumer behavior. placement and presence within the outlet. • Creating default options and tangible incentives will help consumers create the habits they wish to form.

87 VALUE

88 Value Sound Bites

Consumer definitions of value “I do like my price, taste and that is better in terms of overall are often multi-faceted and service, it’s very important and it’s value because you’re getting more undergoing evolution, going built in all together in [value].” than just the food in that case which beyond price to include components –Catherine, 30 warrants the extra price.” such as ambiance, food quality and –Mark, 34 customer service. Due to the subjectivity of value, operators have For example, delivering highly on an opportunity to influence their service and atmosphere can Consumer point to freshly prepared, customers’ perceptions. encourage perceptions of good made to order foods as a point of value, even when menu price points value versus prepackaged “I would be very conscious of are generally higher. As such, the alternatives. getting value for money. I don’t like experiential elements of foodservice “I’d prefer to go and get one made, the feeling of spending lots of can create value by justifying the money on something that isn’t great rarely if ever would I buy a [pre sense, and price point, of a special packaged meal], unless you’re at a quality or great taste, great service. occasion. So if I went to a restaurant, I’d conference…if I’m going out, I’d expect good service, good food, “If you’re going out for a meal and prefer to go out and have good atmosphere, and relaxing making an occasion of things, to me something nice. I’m not going to feel [ambiance].” anyway price is less important better about the experience because because of the fact that you’re I saved a euro.” –Emer, 56 paying for those extra things like - Vinny, 31 atmosphere and so on. And to me, even though you’re paying more,

89 • Bujo, a Dublin-based fast casual clubs, business meals and families operator, highlights value in multiple looking for value in their dining-out Value: ways. experience. • While the operator is not a low- • It also positions itself well against priced quick-service restaurant, the other critical issues, including Operator meal is priced fairly for the sustainability. experiential elements that are Spotlight present. • Offering fresh beef patties along with draft beer and a Coca-Cola Freestyle machine, it has become a neighborhood favourite for sports

90 Value Take-Outs

Key Trends Implications

• Value is an expansive concept that typically involves • Operators will need to assess how to realistically the components of quality, price, atmosphere and address shifting value equations that often differ on a service. person to person basis. • Given existing shortages in qualified culinary • Price sensitivity is largely effected by whether an personnel, investing in methods to actively engage occasion is functional or hedonic. Spending can be and educate staff are critical, especially as customer part of the indulgence when it comes to hedonic service involves not only an attentive staff but also occasions. those capable of providing menu expertise.

91 Dine-Alongs Voice of the Consumer Profiles

93 Lifestyle Sorcha Friends would describe her as a Even on “date night” she tends to good multi-tasker, but maybe not be a creature of habit, visiting the the most social since the kids. She same place about once a month to tries to have things planned out far avoid disappointment. She would in advance and doesn’t suffer like to be a bit more adventurous, indecision. “Know where I’m but this type of pleasure-related going, knowing what I’m going to occasion is used to alleviate stress, eat”. She’s decisive – “we’re not cause more, and she likes to meeting at this location, doing know what she can expect. this, at this time”. “I try to be as prepared as For Sorcha, she is most likely to possible, you know, with small try a new restaurant if she is kids, you can’t really make dining out with friends, where decisions as impulsively as you trying the new spot is part of the used to. You need to know what experience. In these situations, she you’re eating from day to day and would still research the restaurant where you’re going from day to and the menu ahead of time. day” Why Apache Pizza? Age: 31 Foodservice Usage “I didn’t even know that they did Hometown: Slane, Co. Meath Before the kids came along she breakfast until the other day a was office based and would go out friend of mine had a post up on Household: Living with partner and two young for a sandwich almost daily. Facebook – and she took a snap of children ages 3 and under Working at home, this no longer it and I’m like if I’m out for Employer: Remote worker in retail happens, though convenience still breakfast that would be remains a large driver for her somewhere I would go” Character: choice of foodservice outlet. Parking, stairs, and “kid friendly” • Multi-tasker are all strong considerations when • Decisive deciding on a convenient location. This leads to repeat visits to places Restaurant: Apache Pizza, Slane she knows won’t result in unnecessary stress. 94 Topics Sorcha Price Irish Suppliers The influence of price is context “Unless there was a producer dependent. For date night, price is name on the menu that I not a factor, but for the everyday recognize it doesn’t really meal, she keeps price in mind resonate with me. I have a couple when selecting a restaurant and of friends who are familiar with her choice off the menu. suppliers, but it’s not a deciding factor.” Value The quality of the food, the Brexit presentation, the portion size and “I probably should be more the service all register as aspects of conscious and saving money, but the overall value equation. to be honest I haven't just yet. It’s been going on so long now, and Unmet needs personally I’m not making any preparations for it.” • Variety –She has to travel up Age: 31 to 15 kilometers for Thai food Hometown: Slane, Co. Meath • Different sizes for kid’s meals • Healthier options Household: Living with partner and two young children both ages 3 and under

Employer: Remote worker in retail

Character:

• Multi-tasker

• Decisive

Restaurant: Apache Pizza, Slane

95 Lifestyle Bukky As a student, Bukky doesn’t have a is still the gold standard. Her faith lot of disposable income, but she is in word of mouth extends to the curious and doesn’t like to stick to orders she places at restaurants. the same thing “cause it just gets boring”. Trying a restaurant for the first time, Bukky is likely to ask staff She is influenced by the culture about their favorite dish and order and foods that she sees in movies whatever it may be. and television, and is eager to try them out. Travel is important to Why Han Sung? her and sampling food (both chains and independents) local to Bukky admits that she is going that market is a big part of the through a bit of a Korean phase at experience for her. She is often the the moment – watching all the TV one to introduce those around her and movies she can find. Seeing to new foods and flavours. the culture and food on screen she had to try it and sought out a place Age: 20 in Dublin that offers that Foodservice Usage She likes it for its reasonable Hometown: Dublin While Bukky likes dining out, she prices, good potions and made to Household: Living at home with parents and still prefers eating at home order food. Her only complaint is sisters because of the personalization you that it’s cash only. can have in your own kitchen. Employer: Radiography student at UCD In trying new places, she has Character: learned that restaurant Instagram • Confident ads and reviews can be very deceiving, and that word of mouth • Outgoing

Restaurant: Han Sung, Dublin

96 Topics Bukky Value Bukky takes pride in finding Irish Suppliers establishments where she can get “Not usually, I think the fact that the best product for the best price: we’re here in Ireland where “I want to enjoy myself but I still agriculture is a big thing, the want to do it at a reasonable meat would be coming from here price” hopefully and be all tested and safe.” During the summer she had a job across the street from a fast outlet and would opt for the Delivery is an option for her, but student deal 2-3 times a week. she doesn’t use it because of the In addition to price, service also price difference between menu plays a large role in her value prices and it takes longer than equation: “I don’t like to see one takeaway. Coupled with the fact person treated one way and that very often, delivery operators someone else, another. I wouldn’t can’t find her house. Age: 20 want to support that business.” Hometown: Dublin

Household: Living at home with parents and Unmet needs sisters Displaying ingredients in menu Employer: Radiography student at UCD items for those who are health conscious or have an allergy, as Character: well as offering items with the • Confident option to have those ingredients removed. • Outgoing

Restaurant: Han Sung, Dublin

97 Lifestyle Damien Damien’s life is fairly regular and He views foodservice visits as he identifies as a creature of habit: either a treat or functional. These work, school, errands. This routine treat occasions are the first thing results in foodservice occasions to go when money is tight or he is that include fast food operators 9 saving up for a large purchase. times out of 10 as he tends to be on “When times are hard, when we the run. were getting the extension done, the treats were the first to go. If Damien leads a balanced life, we’re going away on holiday, that which includes indulgences here would be the first thing to go.” and there, including lattes from the partially subsidised coffee shop Why Hot Sandwich? at work, and the occasional fried Originally, Damien had intended food on the weekend. to bring Technomic and Bord Bia to O’Briens. We discovered on Foodservice Usage arrival that this location had closed and Hot Sandwich had Age: 48 Damien’s foodservice visits entail trips to the nearby service station opened in its place. Hometown: Ashbourne, Co. Meath for their branded concessions as Household: Living with partner and 9 year old well as lunch at fast food outlets as Damien had originally picked son a treat a couple of times a week O’Briens for a particular bagel Employer: Business Analyst, Technology He regularly cooks dinner at the item he had been craving, but after house, though on a Friday he is looking at the menu board and the Character: likely to order Thai take-away for ingredients on display at the • Balanced him and his wife and pizza for his counter, he was able to find a good son. alternative to fulfill this craving. • Positive

Restaurant: Hot Sandwich Co., Ashbourne

98 Topics I’d just assume it does. And if it Damien Health looks nice, it doesn’t bother me where it comes from.” Moderation is Damien’s policy. He’s never had a particularly poor diet and recognizes the Sustainability importance of diet to overall “Paper straw, plastic straw, be an health and wellbeing. Once a week adult – drink out of the cup”. is fine for a ‘treat’ and a couple of pints on the weekend is OK. He Technology did try a paleo diet at one point, did it for about a month or two Prefers to order on a kiosk at and dropped off. quick-service, though at fast casual, where human contact is part of the value, he would prefer Value to be served by people. It all comes “A good time. If my wife and I down to the intended experience. came out thinking we had a good time.” Brexit This “good time” comes down to Age: 48 I don’t believe there’s going to be service for Damien. His go-to spot shortages, I don’t believe we’re Hometown: Ashbourne, Co. Meath for date night is one where the going to be queuing up. I’m not a operator develops rapport and Household: Living with partner and 9 year old doom and gloom kind of person. son reciprocity with guests, which It’s been going on three years makes all the difference. Employer: Business Analyst, Technology now. Character: Irish Suppliers • Balanced “I like to know that it’s coming • Positive from somewhere in Ireland, but

Restaurant: Hot Sandwich Co., Ashbourne

99 Lifestyle Most days it’s the same chicken Sophie Sophie lives a ten minute drive sandwich. On pay day people at away from the office. the office will go out for a longer lunch at the pub around the corner – however, they no longer offer a She tends to be so busy during the ‘bill splitting’ service so they've day that she doesn’t get to eat started going elsewhere. until she is starving and her conservative food choices reflect that urgency. Seldom would she go to the pub outside of a Sunday carvery, when she would go for a Sunday dinner She doesn’t look at reviews, “cause after a late Saturday night out what everyone else likes I’ll probably be like no” Why Gotham? To make up her mind about She knows the waitstaff, and her something, she has to try it out for friends go here. The food here herself. She’s a self proclaimed always looks good, and she wishes Age: 27 fussy eater who orders things as she was a bit more adventurous. Hometown: Dublin plain as possible, and has always been this way. Household: Living with partner

Employer: Central Housing Foodservice Usage Character: Sophie doesn’t eat breakfast and 9 • Independent thinker times out of ten goes across the road to a deli for lunch or eats • Convenience driven something from the night before. • Fussy eater

• Creature of habit

Restaurant: Gotham, Dublin 100 Topics Sophie Technology Delivery Likes to order from people Vs. Uses JustEat app for Chinese kiosk, because of the queue of takeaway. people who don’t know how to use them and in Dublin she finds most Healthy Eating of the kiosks are broken in one way or another. “Never” considers health content of what she’s eating. As for her diet, “It’s non-existent!” Would not be too bothered by “The main reasons I eat the likes automation in the kitchen in place of crisps and chocolate its because staff. it’s convenient. I’m all about convenience and ease.” Uses Facebook and Instagram, but not to discover new restaurants. Brexit “When Brexit does kick in, it Unmet needs would start to affect me everyday More basic/plain options for and then I would look into it. If it Age: 27 prepared grocery takeaway. isn’t affecting me everyday than I wouldn’t…I get paid on a Friday – Hometown: Dublin Irish Suppliers I have no money to squirrel away.” Household: Living with partner Quality of protein doesn’t come to Employer: Central Housing mind very often when dining out, and where the protein is coming Character: from is less relevant. • Independent thinker

• Convenience driven

• Fussy eater

• Creature of habit

Restaurant: Gotham, Dublin 101 Lifestyle husband and visiting her mother Emer There has been a lot of change to who likes to go to a coffee shop Emer’s weekly routine. She has left chain outlet. her teaching job to work part time, her youngest child will turn 18 Like others we spoke with, Emer next month, her husband is about uses previous orders as her default to retire, and they just bought a choice. At the local fast food outlet, camper van. She has just re- Emer always gets the same thing – started the 5-2 diet, which requires a chicken sandwich meal with a fasting (no more than 500 coke. When she is dining calories) for two days out of the elsewhere, she will look at the week. menu as part of the dining decision process, though she often All these factors combine to reverts back to a simple Caesar disrupt normal foodservice salad, something her daughter patterns – decreasing delivery likes to tease her about. usage on the weekends and increasing foodservice usage Why The Court Yard? during the week. Emer chose The Court Yard for its Age: 56 familiarity. Sometimes she comes Foodservice Usage for a quick lunch or a drink in the Hometown: Leixlip, Co. Kildare Emer’s consideration set is evenings, and likes the Household: Living with partner and 18 year old limited. She visits The Court Yard atmosphere. “We’ve always come daughter and the pub across the street, as here you know, and the food’s well as a pub and a fast food outlet been good. “ Customer service, Employer: Supermarket doing food demos in Lucan – both within walking atmosphere and food earn Emer’s Character: distance of her home. These types loyalty. of visits are increasing since now • Health conscious that she is older, she doesn’t feel • Frugal like and cleaning. Other foodservice occasions include Restaurant: The Court Yard Hotel, Kildare times when she is visiting her children, dining out with her

102 Topics Emer Health The importance of sourcing varies Health drives many of Emer’s by importance of the dining event dining decisions. In the 5-2 diet, 2 and size of check. In less formal days a week you eat 500 calories. settings, having Irish produced For other days you can eat what proteins and other ingredients you want. On fasting days she would be a value add, however it would just get a coffee, and on may not be something she goes out others she just tries to eat well. of her way to pay more for. Some stand out examples include flavourful vegetable sides and a Brexit bun-less option. Lately she has “I think there’s going to be been eating more fats, including another crash like there was. The butter and meat. cost of everything is crazy here in Ireland. I’m not really worried Irish Suppliers about Brexit.” “If I was going to a nice Age: 56 restaurant it would be important Delivery to know where the meat is coming Hometown: Leixlip, Co. Kildare Used to get Chinese, but doesn’t from but a chained coffee shop it anymore because of reports about Household: Living with partner and 18 year old wouldn’t be.” daughter food safety and hygiene.

Employer: Supermarket doing food demos

Character:

• Health conscious

• Frugal

Restaurant: The Court Yard Hotel, Kildare

103 Lifestyle Foodservice Usage Vinny Vinny lives a commuter lifestyle, When Vinny gets stuck at the train traveling 2 hours door to door. station there are few options Vinny seizes control over his day beside unhealthy fast food, which when he can, by eating breakfast he tries to avoid (sometimes and preparing a . But unsuccessfully). his plans are often thwarted by his hectic commute and he misses his A wider variety of options or a train home more days than not, delivery provider servicing the leaving him stranded at the train train depot would be a nice station. improvement from his perspective. Times are changing for Vinny, who has just got engaged and bought a Why Bunsen? house, and is eating out a bit less often as a result to reduce his “When you find somewhere good spending. it can be hard to break away from…do I really want to roll the dice here?” Vinny is a foodie, though he Age: 31 doesn’t describe himself that way. He watches cooking shows in his Vinny is a creature of habit, Hometown: Naas, Co. Kildare free time and searches YouTube to though his habits form more learn new recipes. around establishments than Household: Living with partner specific menu items. He chose Employer: Previously military, now civil servant Bunsen for simplicity and its ability to do a few things very well. Character:

• Disciplined

• Value driven

• Likes to make things simple

Restaurant: Bunsen, Dublin

104 Topics Vinny, is all for supporting sustainability, however there has to Technology Vinny be a tangible incentive to creating a Is all for ordering at kiosks. “I shift in his everyday behavior. wouldn’t have such a unique order Healthy Eating that I would need to speak to someone.” Tries to keep an eye on what he eats, stay away from “jarred stuff”. Delivery Tries to eat well both at home and Goes on Just Eat to find the place at out of home, but sometimes and then rings up the restaurant. loses the battle when deciding Avoids delivery until the between fast food and waiting until technology has improved. His he gets home. house is new and delivery services seem to have issues with locating Value the address on Google maps! “€14 or €15 is a bit on the upper Irish Suppliers side for this, but I’d be willing to bend on it because I know it’ll be “I probably don’t, I never really really good. If I’m just in a normal Age: 31 consider it that much…if it looks restaurant I’ll see there’s an early Hometown: Naas, Co. Kildare like a duck and quacks like a duck.. bird or whatever “The better the Household: Living with partner I wouldn’t really think about deal, the more likely I am to go for where it comes from.” it.” Employer: Previously military, now civil servant Sustainability Character: He uses a reusable coffee mug and • Disciplined “…I only realized when I went to a different place that they gave me • Value driven money off when you use your • Likes to make things simple [reusable]…if there’s 50 cent off, I’ll go back and get it, I’d be more Restaurant: Bunsen, Dublin willing to go back [for it].” 105 APPENDIX: ECONOMIC INDICATORS AND STATISTICS Macroeconomic Factors

Term Definition

Gross Domestic Product (GDP) The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. GDP is commonly used as an indicator of the economic health of a country, as well as to gauge a country's standard of living.

Employment—All Industries Represents the share of the labour force that is employed. The employment rate is one of the economic indicators that economists examine to help understand the state of the economy.

Consumer Price Index (CPI)—All An index of the variation in prices paid by typical consumers for retail goods and other items. Items Consumer Price Index (CPI)—Food An index of the variation in prices paid by typical consumers for food and non-alcoholic beverages. and Non-alcoholic Beverages

Consumer Price Index (CPI)— An index of the variation in prices paid by typical consumers for foodservice items purchased at Restaurants and Hotels restaurants and hotels. Tourism Data on the number of visitors to ROI and NI based on region, as well as the share and growth of visitors from each region.

107 Gross Domestic Product

GDP at Constant Factor Costs Chain linked annually ref to 2017 Euro (€MM) 80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

108

Source: Central Statistics Office ROI Unemployment Rate

Seasonally adjusted monthly unemployment All persons aged 15-74 years)

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0

109

Source: Central Statistics Office Consumer Price Index All Items - ROI

Percent Change v. Prior Year Consumer Price Index (Base Dec 2001=100) 130

128

126

124

122

120

118

116

114

112

2011M01 2011M10

2011M07 2017M01 2017M10

2015M01 2015M10

2013M01 2013M10

2012M01 2012M10

2011M04 2014M01 2014M10 2016M01 2016M10 2019M01

2017M07

2018M01 2018M10

2015M07

2010M01 2010M10

2013M07

2012M07

2017M04 2014M07

2016M07 2019M07

2015M04

2018M07

2010M07

2013M04

2012M04

2014M04

2016M04 2019M04

2018M04 2010M04

110 Base: 100 = December 2001 Source: Central Statistics Office Consumer Price Index Food and Non-Alcohol Beverage - ROI

Percent Change v. Prior Year Consumer Price Index (Base Dec 2001=100) 110

108

106

104

102

100

98

96

94

92

90

88

2011M01 2011M10

2011M07 2017M01 2017M10

2015M01 2015M10

2013M01 2013M10

2012M01 2012M10

2014M01 2014M10 2011M04 2016M01 2016M10 2019M01

2017M07

2018M01 2018M10

2015M07

2010M01 2010M10

2013M07

2012M07

2014M07 2017M04

2016M07 2019M07

2015M04

2018M07

2010M07

2013M04

2012M04

2014M04

2016M04 2019M04

2018M04 2010M04

111 Base: 100 = December 2001 Source: Central Statistics Office Consumer Price Index Restaurants and Hotels - ROI

Percent Change v. Prior Year Consumer Price Index (Base Dec 2001=100) 155

150

145

140

135

130

125

120

115

2011M01 2011M10

2011M07 2017M01 2017M10

2015M01 2015M10

2013M01 2013M10

2012M01 2012M10

2011M04 2014M01 2014M10 2016M01 2016M10 2019M01

2017M07

2018M01 2018M10

2015M07

2010M01 2010M10

2013M07

2012M07

2014M07 2017M04

2016M07 2019M07

2015M04

2018M07

2010M07

2013M04

2012M04

2014M04

2019M04 2016M04

2018M04 2010M04

112 Base: 100 = December 2001 Source: Central Statistics Office Tourism Data 2018

Country/ ROI IOI 2018 Vs. 2017 Share Vs. 2017 Share NI 2018 Vs. 2017 Share Region 2018

United Kingdom 4,748 +1% 42% 3,480 +1% 36% 1,425 +2% 64%

European Union 3,668 +7% 33% 3,512 +8% 37% 333 -8% 15%

USA 1,804 +14% 16% 1,739 +15% 18% 237 +21% 11%

Canada 244 +8% 2% 224 +10% 2% 66 +8% 3%

All Other 723 +5% 6% 654 +8% 7% 158 0% 7%

Total 11,188 +5% 9,609 +6% 2,218 +2%

Source: Tourism Ireland 113