< Previousetc. closed in innumerable locations until further notice. The sector has, and will, continue to miss expected boosts from holidays such as Mother’s Day, Easter and bank holidays which would usually see consumers flock to restaurants and pubs, only adding to their woes. Simultaneously schools and non-essential offices have closed in a multitude of countries and public institutions have pushed staff to work from home, causing concern for caterers. Though hospitals are still a source of demand. Highlighting the severity of COVID- 19’s impact on the foodservice sector in just one area of the world, and the work yet to be done to protect the future of the industry, a survey released in April by the US’s National Restaurant Association, noted that the country’s restaurant industry had already lost two-thirds of its workforce, with over eight million employees laid off or furloughed, due to coronavirus closures. The survey indicated that over sixty per cent of restaurant owners say existing federal relief programs will not allow them to keep employees on payroll during the coronavirus period. Moreover, the survey unveiled that restaurants were set to lose $50 billion in April, after losing $30 billion in March, to witness a loss of over $240 billion nationwide by the end of 2020 as a result of COVID-19 - this is with the expectation of a gradual reopening in June. At the time of writing a $240 billion Restaurant and Foodservice Industry Recovery Fund has been requested by the Association from Congress. The virus has quickly had a devastating effect on foodservice firms, which already operate on thin margins, with for instance The Restaurant Group announcing in March that the majority of its Chiquito restaurants in the UK – sixty-one of eighty - would permanently close after COVID-19 caused it to appoint administrators. The restaurants had already been dealing with falling profits with consumers turning gradually away from chains. While many have decided to shut up shop completely, adaptive businesses, especially independents, have taken the opportunity to switch their services to offer delivery and curb-side pick-up - including those who would never have chosen this path in the past - as a short term solution to keep some sales and cash coming in. Partnering with third party delivery apps is popular here, to achieve this change rapidly, as opposed to businesses creating delivery infrastructure for themselves. However as people look to reduce contact with others as far as possible, including delivery drivers, and the contact others have with their food, delivery customers are also likely to decline. While larger companies may be able to close and absorb the financial ramifications, independents will suffer more so. Then there are the plethora of businesses looking to protect staff, who have closed after intending to stay open, realising maintaining distance in the kitchen is impossible in their case, or that delivery sales are unable to keep them open. For example, in the UK McDonald’s closed its drive-thru services and deliveries. Conversely on the other end of the fast food spectrum, chains like KFC are set to reopen selected restaurants, after initially closing, to offer a limited menu via delivery since implementing new procedures to enable social distancing. Other forward-thinking firms have completely shifted their offering, with food-to-go firm Leon turning UK 40 Food & Drink International www.fdiforum.net FOODSERVICE 39-41.qxp_Layout 1 04/05/2020 12:05 Page 2Food & Drink International 41 www.fdiforum.net FOODSERVICE restaurants into shops stocking essential groceries and ready meals with takeaway and delivery also available as well as grocery box deliveries. Even if foodservice businesses make the decision to close, there remains numerous costs to pay, such as security, insurance and rent if you are not lucky enough to be based in a country with a rent holiday in place. Even then, what comes next is down to landlords who are offering widely varying levels of flexibility as foodservice operators decide where to send cashflow, with some landlords preparing to call in bailiffs and placing large interest payments on rent deferrals. Not only hurting foodservice firms themselves, the wipe-out of the sector has struck its supply chain, seeing millions in produce sales vanish. For many, a quick switch to the retail sector has been key, with suppliers looking to repurpose their business and adapt operations. Though there would need to be a significant increase in retail sales to offset the total lost volume of sales from this sector. Foodservice suppliers are also now owed money from those who are closed and will have no means to pay indefinitely. Subsequently of course suppliers to foodservice companies are unable to pay their own suppliers, and so on, leaving suppliers with debts to pay and stock they may be unable to redistribute or repurpose. For example, some meat processors supplying frozen bulk packs are without the equipment to modify products and packaging to create what is required with the necessary nutrition labelling for retail trade. Foodservice packaging has been affected too, with a survey from the Foodservice Packaging Association indicating that eighty per cent of its members are selling less, seventy-eight per cent are having difficulties with payment, eighty-nine per cent have seen orders cancelled and just 34% are anticipating that they will survive intact following the pandemic. At the release of the survey (15 April), seventy per cent had furloughed or intended to furlough part of their teams. Concurrently there are a plethora of other sectors hit, from equipment suppliers to the laundry industry. Once the world does start to reopen, and foodservice operators with it, it is likely to be a slow road back to normal, as trust is re-established and the economic impact of COVID-19 sees a low level of demand. Upon exiting hibernation, restaurants will additionally encounter a pricy restock of all ingredients and it is likely that any expansion plans pre-COVID-19 will be put on hold as resources get redirected to promoting existing operations and bringing in staff. There is also the concern that social distancing and how the public have been forced to cook for themselves will change interaction with restaurants. Alternatively, using an optimistic mind, one might observe that after being cooped up inside, people, once comfortable, will be raring to be anywhere but home, to enjoy the ambience that only eating out can provide. Unfortunately, none of us have a crystal ball, leaving us stuck in a ‘time will tell’ state of being for now. It’s more than likely we will be well into 2021 before a sense of true normality returns. Certainly, the foodservice sector is witnessing seismic change with operations closing, filing for bankruptcy, and some set to never open their doors again. © Shutterstock /W allenrock 39-41.qxp_Layout 1 04/05/2020 12:05 Page 3range of activities. 2018’s edition brought together almost 4,000 exhibitors and played host to 140,000 visitors from 157 countries. For more information, visit www.alimentaria.com/en. 2 – 3 October Plant Based World Expo Jacob K. Javits Convention Centre, New York Plant Based World Conference & Expo is the only professional 100% plant-based focused event for foodservice, retail, and healthcare professionals, distributors, investors, manufacturers, and the savvy consumer community. Network with professionals who have successfully embarked on both personal and professional plant-based journeys, many of whom have created some of the world’s most revolutionary plant-based products and foods. Share experiences, learn from peers, and immerse yourself in a truly collaborative plant-based environment. Test all the new products that will be the talk of 2020 from companies committed to harnessing the power of plant-based. To find out more, visit www.plantbasedworldexpo.com. 4 September UK Soft Drinks Conference 2020 London Zenith Global’s annual UK Soft Drinks Conference brings together senior industry managers, innovators, retailers, suppliers, opinion formers and advisers to provide the fullest possible one-day overview of the latest developments, issues and opportunities. The theme for 2020 is ‘Personal Choice’, with a focus on premium, adult, craft innovation, while also tackling challenges from society choice to new technology. In association with British Soft Drinks Association. For more information, visit www.zenithglobal.com/events/uksd2020. 14 – 17 September Alimentaria Fira Barcelona Gran Via, Spain This edition of Alimentaria presents a new concept which multiplies its offer to boost the business of each sector and facilitates transversal synergies. In addition to a commercial platform, Alimentaria shows its close relationship with the tourism sector and the food industry, putting value on gastronomy, innovation and trends through a wide 42 Food & Drink International www.fdiforum.net 20 – 22 October Global Water Drinks Congress 2020 The Gleneagles Hotel, Auchterarder, Scotland Tour Highland Spring’s bottling operations, followed by two days of conference sessions, networking opportunities with key industry figures and a gala awards dinner. Delegates will hear from leading international and regional businesses on the latest market Events Food & Drink © Shutterstock /Y ein Jeon © Shutterstock /Ceri Breeze 7 – 9 September Food & Drink Expo Birmingham NEC One of the UK’s largest and most well- respected food and drink focused trade exhibitions, Food & Drink Expo is an event for the grocery, food service, wholesale, manufacturing and speciality retail markets. Along with Farm Shop & Deli Show and National Convenience Show, the show has been moved from its original date to September. To find out more, visit www.foodanddrinkexpo.co.uk. 42-43.qxp_Layout 1 04/05/2020 12:07 Page 1and strategic developments, as well as from innovators and entrepreneurs contributing to the industry. For more information, visit www.zenithglobal.com/events/gwdc2020. 29 – 30 October Dairy Asia Pacific Summit 2020 Singapore The seventh Dairy Asia Pacific Summit 2020 will gather distinguished experts as well as industry leaders to provide thorough analysis of the latest regulatory dynamics and industry integration. The two-day event will provide an effective platform for attendees to share their valued experiences and opinions on the many challenges and opportunities within the Asia-Pacific industry. To find out more, visit www.duxes- foodbeverage.com/dairy-ap. 10 - 12 November BrauBeviale 2020 Exhibition Centre Nuremberg About 40,000 trade visitors, including around 18,000 from outside Germany, will travel to the most important international capital goods exhibition for the beverage industry this year. With 1,086 exhibitors, the exhibition will provide an opportunity to learn all about the beverage manufacture process chain: high-quality raw materials, innovative technologies and components, efficient and sustainable packaging, and creative marketing ideas. Once again this year, the exhibition had the key theme of ‘Future viability of the beverage sector’. For more information, visit www.braubeviale.de/en. 22 – 24 September Vertical Farming World Congress 2020 London Heathrow The inaugural Vertical Farming World Congress will enable visitors to hear from leading global players and to visit London’s leading operations. Bringing together vertical farming operators, investors, suppliers and experts, our aim is to debate and help advance the sector’s future. To find out more, visit www.zenithglobal.com/events/vfwc2020. Food & Drink International 43 www.fdiforum.net 1 – 3 September Vitafoods Europe Palexpo, Geneva, Switzerland Over the past 22 years, Vitafoods Europe has established itself as the meeting place for the nutraceutical industry with over 24,000 industry experts attending the show every year from more than 110 countries. Located in Geneva, the annual show offers the perfect platform to network, learn and forge long-term collaborations within the health and nutrition industry, source innovative quality ingredients and products, discover product development solutions and meet technical experts and thought leaders. To find out more, visit www.vitafoods.eu.com/en/welcome. © Shutterstock / S-F 42-43.qxp_Layout 1 04/05/2020 12:07 Page 2FEATURES Temperature Control Spotlight Sustainable Packaging Warehousing & Distribution Flow Measurement & Control Processing Snack Foods Import & Export Next month in June 2020 - Deadline 13th May INTERNATIONAL Food &Drink Food &Drink Visit us at www.fdiforum.net where you’ll find the latest news as it breaks – and why not subscribe to our newsletters so you can have the latest news emailed to your inbox, in between printed issues? 44.qxp_Layout 1 04/05/2020 12:08 Page 1Classified Often imitated… …never equalled You can feature your company in our hugely popular Online Directory with a description, contact details and a hyperlink If you would like further information please contact Sam Trott on +44 [0] 1472 310310 or email s.trott@blmgroup.co.uk or visit www.fdiforum.net/directory From field to fork, Food & Drink International is the voice of the industry. Food & Drink International 45 www.fdiforum.net Depositors Tel: 01282 440040 enquiries@riggsautopack.co.uk www.riggsautopack.co.uk Manufacturers of depositors & filling machines for the food production industry Labels Tel: 01482 506560 sales@datamarkuk.com www.datamarkuk.com • Self adhesive Labels • Lasersheets • Fanfolded Labels • Thermal Transfer Ribbons • Barcode Labels w w w . fd if o ru m .n et To advertise your services on the Classified pages contact us on 01472 310302 Hoses Providing all hose and couplings wash-down and non-glass sight glass requirements to the Food & Dairy Industries Tel: +44 1933 673699 Fax: +44 1933 675819 E-mail: enquir y@f lexrite.co.uk Web: www.f lexrite.co.uk FlexRite 19 The Trinity Centre Park Farm Industrial Estate Wellingborough Northants, NN8 6ZB • Superb Location - Close to the ports of Grimsby & Immingham - Great motorway links - Close to the town centre • Secure off street parking • High speed internet availability • Easy in/out terms • A range of affordable office sizes Armstrong House, Armstrong Street, Grimsby DN31 2QE Tel: (01472) 310301 Email: s.fisher@blmgroup.co.uk Ground floor offices to let - prime location in Grimsby To Let Online Directory 45.qxp_Layout 1 04/05/2020 12:08 Page 146 Food & Drink International www.fdiforum.net FoodandDrinkInternational@fdiforum company/fdiforum Once more Food & Drink International provides your ultimate guide to the industry – making sure you’re informed on what’s going on and looking closer at what’s happening. Don’t forget to keep up to date via www.fdiforum.net! Online this month… www.fdiforum.net is the best place to for up-to-date food and drink industry news. Here’s a sneak peak at one of our latest stories. Sales of meat-free foods in the UK have increased 40% to an estimated £816 million from 2014 to 2019, research from Mintel shows. Britain’s meat-free market continues to flourish with the research revealing that the number of Brits who have eaten meat-free foods has increases from 50% in 2017 to 56% in 2019. Sales have increased an impressive amount over a five-year period and will continue to grow in the years to come. Indeed, sales are expected to be in excess of £1.1 billion by 2024. According to the research, the proportion of meat eaters who have reduced or limited the amount of meat they consume has risen from 28% in 2017 to 39% in 2019. Women are more likely than men to have limited/reduced the amount of meat in their diets (42% compared to 36%); this rises to 45% among all under-45s. But while the meat-free market is thriving, 38% of non-users would prefer to substitute meat with other ingredients such as cheese or pulses, rather than buy meat substitutes. Diary Food & Drink September 1-3, Vitafoods Europe, Switzerland 4, UK Soft Drinks Conference 2020, London 6-8, Speciality & Fine Food Fair, London 7-9, Food & Drink Expo, Birmingham 14-17, Alimentaria, Spain 15-17, Labelexpo Americas, Chicago 22-24, Vertical Farming World Congress 2020, London 23-24, Packaging Innovations, London 24-25, lunch!, London 29-1st Oct, PPMA Show, Birmingham October 2-3 October, Plant Based World Expo, USA 7-8, The Word Biogas Expo, Birmingham 18-22. Sial, Paris 20-22, Global Water Drinks Congress 2020, Scotland 29-30, Dairy Asia Pacific Summit 2020, Singapore November 4-5, Lab Innovations, Birmingham 10 – 11, World Food Innovate Summit 2020, Italy 10-12, BrauBeviale 2020, Germany 23-26, All4Pack, Paris Pick up a copy of Food & Drink International at this event Stay in touch with Food & Drink International For more up to the minute information from the food and drink industry, visit Food & Drink International online at www.fdiforum.net. Keep up to date with Food & Drink International, and let us know what you think, by following us on Twitter at @fdiforum, at www.facebook.com/FoodandDrink International or by searching for fdiforum on LinkedIn. 46.qxp_Layout 1 04/05/2020 12:10 Page 1 INTER N Food Food &&& Food Food & N ATI O N &&Drin Drin Drin &&Drin AL nk nk nkk Coo Kee l i lf l ts in C C Cii On the shel uncF ctional ingredient Cleaning an maintenan nd nceFor businesses that are serious about reducing their carbon footprint www.blmgroup.co.uk VOLUME 4 ISSUE 1 W W W. R E N E W A B L E S A N D E N V I R O N M E N T. 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