Survey shows growing optimism in foodservice sector and hospitality sector

A survey conducted ahead of CATEX 2013, by flagship event of the Irish Foodservice Suppliers Association (IFSA) has found growing optimism in the foodservice and hospitality sector, with almost 4 out of 10 businesses likely to increase employment levels in 2013.

A total of 39% of respondents said that they are more upbeat about the foodservice sector for 2013, than last year, with a correspondingly high rate of companies (37%) saying that they expect to increase employment in their business at some point in 2013. In addition, 46% of respondents stated that they expected to increase investment in their business throughout the coming year.

“These are really positive signs for our industry, which has undergone an incredibly challenging few years” said Julie Morrissey, IFSA Chairperson.

“We are also delighted to see that a very large percentage of respondents have increased their purchase of local rather than imported produce in the last twelve months. In fact a total of 54% of businesses we surveyed in the industry state that they have increased the amount of Irish produce purchased in the last twelve months” said Julie Morrissey, IFSA Chairperson. “The focus with Chef’s Choice @ CATEX, is on the need for Chef’s in Ireland to choose local produce rather than imported produce. To promote the best of these suppliers, we have a dedicated area for small artisan producers to allow them impress key industry decision makers.”

9,000 visitors from the Irish food and foodservice sector start to converge on RDS over next three days for the greatest foodservice event of the year.

“CATEX has been running since 1965, however this year there is a growing sense of confidence in our sector” said Julie Morrissey, Chairperson IFSA. “The survey results point to a quiet confidence beginning to emerge in our sector. There is no doubt that the decision by the Government to reduce VAT to 9% has helped the hospitality sector. In fact, 47% of respondents point out that the reduction in VAT has helped to sustain or create jobs in their businesses.”

“CATEX will feature over 200 exhibitors spanning 12,000 square metres of the RDS. There is a growing sense of optimism in the foodservice sector and CATEX 2013 will be a celebration of all that is good about our sector” said Julie Morrissey, IFSA Chairperson.

KEY FINDINGS FROM IFSA FOODSERVICE SECTOR SURVEY

Overall sentiment is very positive among foodservice sector for 2013.

A total of 39% of respondents said that they are more upbeat about the foodservice sector for 2013, than last year, with a correspondingly high rate of companies (37%) saying that they expect to increase employment in their business at some point in 2013. In addition, 46% of respondents stated that they expected to increase investment in their business throughout the coming year.

Priority for Irish Produce

70% of respondents stated that they actually prioritize the purchase of Irish / local produce. This is a positive sign for the industry, when it is seen in the context of the large number of businesses (54%) that have increased the amount of Irish / local produce they have purchased for their businesses in the last twelve months.

9% VAT – helping to create jobs in the sector

The largest thumbs up from the sector came in relation to the support for the 9% VAT rate introduced by the Government to help stimulate the hospitality sector. A total of 86% of the respondents expressed their support for this measure. 46% of respondents identify the decision to reduce VAT to 9% as the deciding factor in helping to sustain as well as create jobs in their business.

Use of social media to promote business

The survey found that 77% of respondents now use social media to help promote their business and communicate with their customers?

Report Card for the Government & state agencies from the Foodservice Sector

In light of the focus on the work of the Government and state agencies recently, the survey asked ‘How would you grade the work of the Government & state agencies, in their work to promote the FoodService Sector?’

The results were

• Excellent 0
• Good 23
• Fair 46
• Pass 15
• Fail 16