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Title: Failte Ireland Report to Measure True Cost of Eating Out
Author: Failte Ireland
Date: 08/28/2008
Article Contents:
Fáilte Ireland has initiated research into the costs associated with food preparation in the hotel and restaurant sector in Ireland. The national tourism development authority has advertised this week on www.etenders.ie for interested parties to apply to undertake this research.
The study will include analysis of the following:
Raw materials costs: food items and ingredients;
Labour costs: hiring and retaining the necessary skilled staff;
Regulatory burden: the costs associated with regulatory compliance, including health and safety, food safety, premises safety, employment protection and employee rights, and financial and tax compliance;
Utility costs: mainly gas, electricity, water and waste disposal;
Fixed and overhead costs: covering items like rents, rates, marketing, insurance and administration.
The research will also examine cost controls within the sector and, if possible, may benchmark Ireland’s performance against other countries to set a broader international context for the analysis.
Brian Maher, Head of Research and Policy with Fáilte Ireland, today emphasized that:
“Eating out is an integral part of the tourism experience. However, for a number of years, visitor surveys have revealed a level of dissatisfaction relating to a perceived value for money in this regard. Although this issue has surfaced occasionally as a matter of concern on the part of tourists, little scientific evidence actually exists around food production costs, nor has there been any rigorous analysis of the issue.
“The purpose of this study is to examine the costs of providing a meal in a restaurant – whether in a hotel or in a stand alone establishment. The study will develop insights into food production and preparation costs in both the hotel and restaurant sectors that will facilitate a proper and open debate on this subject.”
It is expected that the final report will be completed and available by December 2008.
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