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