Ireland’s €6bn food service sector poised for growth in 2015, says Pallas Foods

A new survey by Pallas Foods reports 55% of food service businesses said customers were not buying more during their dining experience, yet 44% said they were (the trend moving from two to three course meals)

A new survey conducted by Pallas Foods reports positive findings from within the food service sector

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80% of business owners in Ireland’s €6bn food service industry are confident of growing their businesses in 2015 with a further 45% planning to create new employment this year. This is according to a new survey conducted by Pallas Foods.

The renewed optimism from business owners in the sector is due to a number of factors, which they believe are creating positive momentum in the sector, namely: the economic recovery where customers are spending more of their disposable income; increased forward bookings for the tourist season; and new food offerings to meet changing customer demands.  Interestingly, the launch of the Wild Atlantic Way was also cited as one of the primary reason for renewed growth optimism.

In relation to consumer spending, business owners surveyed find that their customers are eating out more, but in the main are not purchasing more when dining out. While 44% highlighted that their customers were purchasing more when out (the trend moving from two to three course meals), 55% said that their customers were not buying more during their dining experience.

Like all other business sectors, the increasing cost of running a business in Ireland and competition are the two biggest challenges facing Irish food service businesses today. 30% of those surveyed highlighted increasing overheads as an issue, while 29% highlighted new competition and entrants to the market as an issue.

Commenting on the survey findings, Peter Foley, executive vice president of Pallas Foods, said: “Pallas Foods looks to 2015 with the same optimism and confidence of our customers. That confidence is based on the recovery that is happening but is also related to the rate of innovation and change that is happening in the sector, all of which is geared to meet the growing needs and sophistication of Irish consumers.”

AT A GLANCE: Ireland’s food service sector

• 80% of business owners in Ireland’s €6bn food service industry are confident of growing their businesses in 2015
• 45% of food service businesses are planning to create new employment this year
• 44% said their customers were purchasing more when out (the trend moving from two to three course meals), yet 55% said that their customers were not buying more during their dining experience.
• 30% of those surveyed highlighted increasing overheads as an issue, while 29% highlighted new competition and entrants to the market as an issue

Supporting Irish producers

• Over 70% of those surveyed commit to using Irish ingredients on their menus
• 29% of those surveyed use between 40%-60% Irish produce on their menu
• 41% of those surveyed use between 60%-80% Irish produce on their menu
• 8% of those surveyed only use Irish produce on their menu

Changing consumer tastes

The continued growth of gluten free menu options was highlighted by those surveyed.

• 53% of those surveyed highlighted that their customers were requesting gluten free menu options.
• 13% highlighted Ingredient traceability
• 9% highlighted calorie information
• 8% highlighted international flavours

220 business owners responded to the Pallas Foods survey

Read More: dining food service