Irish Foodservice Inflation vs Consumer Prices

Ireland’s Fast-Food Sector Facing Price Pressures

The latest research from Meaningful Vision shows continuing price growth in Ireland’s fast-food sector during the last quarter, with more than 60% of top chains raising their prices over the past three months.

Widespread Increases Across Segments
All the top coffee chains raised their prices, alongside more than half of fast-food chicken outlets and 57% of burger outlets. Pizza delivery operators showed more restraint, with 42.9% implementing changes.

These adjustments affected 15% of the total assortment. However, examining segment by segment, burgers, pizza, and sweet bakery were the most impacted categories — nearly one-third of items in these areas became more expensive. By contrast, salads, hot drinks, and ice cream saw fewer price hikes (2-6%).

Broader Inflation Context
According to the Central Statistics Office (CSO), Ireland’s food prices rose by 5.1% in August, marking the steepest increase since December 2023 when growth hit 5.6%. The rise was primarily driven by inflated wholesale costs for a wide range of products, including butter and beef.

Consumer prices overall climbed 1.1% across the last three months, with growth of 0.5% in both August and June, and 0.1% in July. The Meaningful Vision Fast Food Price Index mirrored this trend, showing a 1.2% rise over the same period.

 Category Dynamics
Strongest growth: Pizza, sandwiches, and burgers recorded increases of 1.7–1.8%, while cookies and cakes led with a 2.8% rise.

Weaker growth: Bakery and salads showed the lowest growth, less than 1%, reflecting consumer sensitivity to essential categories.

Within the pizza segment, the largest share of increases came from pizzas, meals/combos, sides, and salads. Pizza itself was hardest hit, with 27% of items rising in price, followed by salads and extras with 22.2% each. Sides posted the sharpest price hikes, averaging +2.2%, ahead of meals/combos and pizzas, both +1.8%.

In the burger and chicken category, core products like burgers, sandwiches, wraps, and combo meals, saw the biggest price increases, impacting 20-30% of all assortments. Sandwiches were particularly affected, with price hikes as high as 3.6%. While combo meals and burgers saw more modest price rises of 1.3% and 1.7%. Prices for value items such as snacks, bakery goods, and hot drinks remained flat in an effort by operators to maintain affordability for consumers. This approach ensured that main meals absorbed the bulk of the price increases while popular add-ons maintain a promise of value.

In coffee shops, the trend was reversed. Prices for high-margin treats like sweet bakery items  were up 28%, and cookies and cakes grew 4.1% on average. This strategy largely allowed the shops to protect the prices of core traffic drivers like hot drinks (up only 0.5%) and breakfast items (up 0%), keeping essential items affordable while passing price increases to discretionary, higher-margin add-ons.

Store Evolution and Segment Performance
In addition to rising prices, the first half of 2025 bore witness to the emergence of another trend in the Irish foodservice market: a significant shift in store formats and coverage. Overall, the number of fast-food outlets contracted by 3%, and consumer traffic also declined by 2%.

The hardest-hit segments were quick-service bakeries and sandwich shops, which saw a 7% decline, largely due to the closures of well-known names like Thunders Home Bakery and O’Briens. Ethnic fast-food restaurants also experienced a sharp drop, falling 12% year-on-year, underscoring the economic pressures on smaller, niche operators.

By contrast, major brand players in the burger, chicken, and coffee categories held relatively steady. This suggests that a strong brand presence allowed some operators to maintain their footprint, despite softer demand. While pizza outlets dipped slightly, leaders like Domino’s remained resilient and pursued selective expansion.

Some brands even bucked the overall trend. Domino’s, Supermac’s, and Esquires Coffee all posted growth, highlighting how strong brand positioning and clear value strategies can help operators succeed in a difficult climate.

The shifts in store numbers correlate directly with consumer traffic and market share. As the bakery and sandwich segment contracted, its market share decreased. Conversely, the coffee segment grew its market share, with chicken and pizza also seeing slight increases. This redistribution of traffic reflects evolving consumer preferences and the resilience of certain segments.

The Irish fast food sector is adjusting pricing in a nuanced way, balancing inflationary pressures upon profitability,  with the need to protect consumer perception of value. Essentials such as hot drinks and breakfast items remain relatively shielded, while discretionary treats and main meals are carrying the bulk of the price growth.

“The acceleration in food prices is being driven by higher agricultural output prices, which are a reflection of higher energy and fertiliser prices. On top of the impact on food and beverages in retail, we see the same trend in fast food,” notes Maria Vanifatova, CEO of Meaningful Vision.

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