Greater Travel During Leisure Hours More Travel example essay topic

The Irish Foodservice Market has grown by over 50% since 1997. The market value is now estimated to be IRl b 1.1 billion at caterer's purchase prices. A number of factors have contributed to this growth in recent years, related to demographic and lifestyle changes and greater economic prosperity. Key factors include the buoyant Irish economy coupled with increased consumer spending. The profound changes in household structures with increased numbers of one and two person households and more women working outside of the home have also contributed to this growth. Ireland has the youngest population in Europe with 40% under the age of 25.

The tourist industry has experienced a 150% increase in visitor numbers since 1988. Increased domestic travel caused in part by greater commuting times and distances but also by greater leisure and business related travel has fuelled development of the fast growing "food to go" segment of the market. Foodservice is a very different market to retail, being extremely diverse and covering the entire spectrum of society, at work, at leisure and increasingly, in transit. Supplying the foodservice market is more complex and service is of prime importance. Different types of operator require products with different specifications, quality standards, price points, packaging, ultimately requiring a much larger number of products for a given volume of business than in retail.

Some recent key trends to note include a tendency on the part of the consumer to trade up, largely as a result of greater levels of disposable income. Staff shortages, as with other industry sectors, are threatening to act as a brake on the development of the market and causing rapid de-skilling and greater usage of frozen convenience foods. Improved hygiene standards have also become pressing necessities. The culture of the industry is changing with de-skilling and convenience foods playing a more important role. Further processed products are witnessing very strong growth. Group operators from abroad have also entered the market, introducing new practices including a greater emphasis on supply chain disciplines.

A number of high profile chains have now established a presence in Ireland and it is likely that chain and brand based operations will play a much more important role in a few years. This challenging, fragmented but high growth market sector presents opportunities and rewards for companies that pursue a long-term strategy. THE IMPORTANCE OF FOODSERVICE In the past, and even today, many food processing companies have neglected to address the foodservice market. However, the events of recent years are forcing a rapid re-appraisal of this policy.

Whilst many retail food markets stagnate, or enjoy only modest growth, the Irish foodservice market has performed in spectacular fashion. By common consent, the market has grown at annual average rates of at least 17% per annum for the last 3 years - and possibly more. Whilst this level of growth cannot be sustained, a whole cluster of economic, demographic and lifestyle factors point to the same conclusion - foodservice is a strategically important market. THE FACTORS FUELLING FOODSERVICE GROWTH A variety of factors have contributed to the foodservice phenomenon in recent years.

1. A buoyant Irish economy Over the past 7 years, the average annual rate of increase in Irish GDP has been 9%. 2. A growing population The size of the population is increasing. In April 2000 it was estimated at 3.79 million by the CSO - the highest figure since the census of 1881, when a population of 3.87 million was recorded.

42,300 immigrants arrived in Ireland in the year to April 2000. Net migration (the difference between inflows and outflows) is raising the population by about 20,000 a year. 3. Increased consumer spending Between 1995 and 1999 the volume of personal consumer spending in Ireland on goods and services increased by 49.8% according to the CSO. The rate of growth, if anything, has accelerated since then. 4.

More households The number of households is increasing, as household sizes get smaller and people start setting up households at an earlier age. The CSO says that the number of one and two person households increased by 27.4% between 1988 and 1997. The experience of other developed markets shows that one and two person households tend to eat out more. 5. A young population Ireland has the youngest population in Europe, with 40% under the age of 25. The median age of the Irish population is currently around 30 years, whereas it is closer to 40 in most other European countries.

Experience shows that young adults tend to eat out more than almost all other sectors of the population. 6. More working women The number of women, particularly married women, within the workforce has increased significantly in the last decade. It now stands at 48% of all adult women, which is slightly above the EU average, but still low in comparison with the UK. 88% of women in employment are now working 20 hours a week or more. Cash rich, time poor women have a tendency to eat out more.

7. A dynamic tourist industry In 2000, 6.5 million visitors came to Ireland - the 9th successive year of visitor growth. Since 1988 visitor numbers have increased by 150%. 8. Increased domestic travel There is greater commuting, especially in the Greater Dublin area, brought about by rising property prices. There is greater business travel, as the booming economy increases the movement of goods, and of business people.

Lastly, there is greater travel during leisure hours (although an increasing proportion of this is abroad.) More travel brings more eating out. Long term, many of the greatest growth opportunities will be travel related.