Price Surge in Foodservice
Bord Bia's annual Foodservice Market Insights report shows that the Irish "out of home" sector increased by 5% in value, and overall industry turnover reached a record €10.4 billion across both the Republic of Ireland and Northern Ireland. While this is the highest level seen within the industry to date, much of this increase has come about due to inflation and higher menu prices driven by significant cost pressures in the sector.
Pictured at the launch are (L–R): Maureen Gahan, foodservice manager, Bord Bia; Esha Barua, head chef, National Gallery of Ireland; and Pat O’Sullivan, CEO, Master Chefs.
Maureen Gahan, Foodservice Specialist at Bord Bia, said:
"Although 2025 has seen the Irish foodservice and hospitality sector reach a record value of €10.4 billion, this expansion hasn’t been without difficulties. Many operators still struggle with profitability due to rising costs. However, sectors like education catering and events are experiencing sustained growth. Future growth will depend not only on pricing, but also on collaboration, innovation, and a renewed emphasis on making foodservice both affordable and enjoyable for consumers."
Bord Bia’s research shows that although the sector has been resilient, post-pandemic growth is slowing, and consumer footfall remains mostly unchanged. Operational profitability remains under significant strain, as input costs continue to rise and margin pressures persist.
Prices on menus are now 26% higher than in 2020. Consumers want to go out and eat, but many perceive that dining out has become unaffordable. This is a significant challenge as the industry is unlikely to see any real growth until menu price inflation is in line with or lower than the general inflation rate.
Hotels and pubs continue to show slower recovery than other commercial channels, highlighting the ongoing need for cost management, menu innovation, and targeted value propositions to re-engage consumers who increasingly view dining out as less affordable. Additionally, there is an urban-rural divide, with businesses outside of major towns facing greater challenges and resulting in higher closure rates.
Despite these challenges, the report highlights key areas of strong performance and emerging opportunity:
- Institutional Foodservice saw a notable 15.5% growth, driven largely by the expansion of the Hot School Meals programme in the Republic of Ireland and the Return to Office mandate.
- Leisure and Events Hospitality continues to strengthen, demonstrating the enduring consumer appetite for shared experiences. Spending at sporting, cultural and music events remains robust, reflecting a trend of "when they go out, they go all out".
- Limited-Service Restaurants (LSR), including fast-food restaurants and food-to-go outlets, have also outpaced the market by capturing everyday meal occasions and value-conscious consumers.
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