Experience in horeca. The concept of HoReCa in trade

Any person working in the restaurant or hotel business knows perfectly well what HoReCa is. However, most people working, for example, in retail and not related to the hospitality and Catering do not understand the meaning of this term. What is HoReCa? Basically, the concept of HoReCa is used by specialists working in hotels, restaurants, cafes, bars, as well as suppliers of products and equipment for these establishments. However, HoReCa is not only a catering and hotel industry, it is a whole industry that includes a business, without which hotels, restaurants and cafes simply cannot work stably.

The very concept of HoReCa stands for Ho phone, Re staurant, Ca fe. However, there is a widespread opinion that today the last two letters of the term are more in line with such a direction as catering (Catering). Still, a cafe as a distribution channel is not much different from a restaurant, but catering is an independent line of business with its own characteristics of the purchase and sale of products and goods.

HoReCa - what is it?

This is now HoReCa - this is an industry with a multi-billion dollar turnover. But her story began more than modestly. Alcoholic companies were the first to become interested in a promising distribution channel, which began to supply expensive premium drinks to restaurants and hotels. As practice has shown, this was the right move - high-quality exclusive alcohol sold much better in restaurants and bars of luxury hotels than in ordinary retail stores.

Later a short time the success of alcohol suppliers interested food manufacturers and companies that supplied furniture, textiles and special equipment to hotels, restaurants and cafes.

At first, a small segment of the economy began to develop rapidly, and today HoReCa companies are represented by companies that supply literally all categories of products or goods for the restaurant and restaurant industries for the service sector. hotel business. At the same time, most of the goods sold in this segment belong to.

HoReCa segment

Unlike retail or, the HoReCa segment is characterized by relatively low sales volumes. By themselves, HoReCa distribution channels are not designed for large wholesale deliveries. Most suppliers partner with hotels, cafes and restaurants to expand their market presence and brand awareness. This approach allows you to give the product additional value in the eyes of the consumer. Beautiful interiors, staff skill, great experience chefs, waiters and maitre d's make any product exclusive.

Another feature of the HoReCa segment is the so-called on-trade approach. It differs from ordinary retail in the way the product is provided - the product purchased by the consumer is delivered open, without packaging and is used in the same place where it was purchased.

A simple example: a restaurant customer ordered a steak and a bottle of red wine. His order will be fulfilled, but before that he will go through a transformation stage: the meat will be cut and grilled, and the bottle will be opened. This is what distinguishes the HoReCa segment from retail - the absence of packaging, transformation before sale and giving additional value to the product due to the entourage of the establishment.

HoReCa Companies

The HoReCa segment is so vast that it is not possible to count the number of restaurants, cafes, bars, eateries and other hospitality businesses. In the same way, it is impossible to name exactly the number of companies serving this segment. The names of many HoReCa suppliers are familiar even to people who are far from business - these are brands such as Baltic Coast, Bonduelle, Russian Tea Company, Aqualife. These companies supply food and beverages. Equipment, utensils, furniture, overalls, as well as ventilation and air conditioning systems are supplied by hundreds of suppliers throughout Russia and from abroad. Perhaps their names will say little to a person who is far from the HoReCa sphere, but each of these companies is a full-fledged market participant. Despite the fact that many of the named suppliers are actively engaged in wholesale sales and are mainly engaged in the B2B segment, HoReCa sales channels are very important for them, as they work for the brand image and its recognition.

HoReCa Sales

When it comes to sales in the HoReCa segment, specialists working in retail or dealing with large wholesale note a high level of difficulty in promoting products to the market. When owners of restaurants or hotels act as a counterparty, they have to build special relationships with them, since not every product is suitable for sale in their establishment. Most restaurants and cafes prefer to work with suppliers who provide quality yet affordable products with the highest conversion yield. The more stages of processing the product goes through before the client buys it, the greater its final cost. Therefore, it is much more profitable for restaurants and cafes to sell dishes made from simple ingredients (sushi, rolls, pizza, any food prepared in the kitchen) than Snickers, packaged ice cream or bottled beer.

If the product offered by the supplier corresponds to the concept of the buyer operating in the HoReCa segment, then there is hope that the cooperation will be long and mutually beneficial. Keyword here "long". one of them distinguishing features enterprises in the HoReCa sector is striving to preserve the recognizable characteristics of the products offered to visitors to the institution. Steak or pizza, coffee or freshly squeezed juice should have a pronounced taste and aroma that should not change. Preferably never. If visitors to the establishment feel changes, especially for the worse, this will immediately affect revenue.

It is for this reason that restaurateurs and hoteliers choose food suppliers so carefully - they are primarily interested in the stable quality of the goods. If the supplier changes, the taste of ready-made dishes offered to visitors changes, which is unacceptable in many cases.

Therefore, sales managers working in the HoReCa departments of large supplier companies need to be very persuasive in order to melt the ice of doubt from a potential buyer. After all, no matter how famous the brand is, the buyer still evaluates only the quality of its product. If it is stable, then this sales channel will work for as long as possible. Cooperation can be terminated only as a result of the fact that a restaurant, cafe or hotel closes or a competitor appears on the market offering exactly the same product, but at a lower price.

People who are not connected with the service market industry often do not know what Horeka is. Even having learned the definition of this term, they feel a misunderstanding of the HoReCa processes - what it is and why single it out as a separate business segment. However, Horeca industries are rapidly developing and have great prospects for development in the coming decades.

HoReCa is a capacious concept that includes many organizations that are somehow involved in the provision of services or the sale of goods in the hospitality industry.

Restaurant

The translation of the abbreviation HoReCa (Horeka) from English means: Ho - Hotel, Re - Restaurant, Ca - Catering - hotel, restaurant, catering.

Reference. Sometimes the ending Ca is also deciphered as Cafe (cafe), however, catering is most preferable for deciphering, since the concept of "cafe" is included in the concept of "restaurant".

There are also Russian analogues of this term. The most suitable - GRB - hotel and restaurant business. In the literature there is an abbreviation KaBaRe (cafes, bars, restaurants), or this area is simply called "public catering".

AT English language the abbreviation has synonyms that allow you to fully reveal the concept of Horeka and describe what it is:

Characteristics of the HoReCa segment

The Horeca segment is considered from two sides: in trade and in sales. What is the HoReCa segment in sales: it is a type of distribution channel for certain products. HoReCa in trade is a market segment that offers accommodation, catering and entertainment services.

Additional Information. AT large organizations work with HoReCa companies is singled out as a separate area, which is supervised by specially trained managers.

The Horek segment has several key differences from other types of sales:

Vendors in the Horek segment buy only what they need.
When consuming, the customer does not see the brand and packaging. Therefore, the original packaging design of the product that is supplied to the Horeka segment does not mean anything, but only increases the cost of the product and makes it unattractive for the seller of the segment. Only some products are sold to the client branded: coffee and tea, alcoholic beverages, soft drinks, cigarettes.
In the Horek segment, not only the quality of the goods is important, but also the price and yield after processing. Therefore, in order to sell a product to a company in the Horek segment, it must be of high quality, at a low price and have low labor costs for processing.
Changing the supplier, introducing a new product into the assortment is rare. Therefore, such a serious decision is sometimes made even at the level of director or founder.
In the Horeca segment, goods are supplied in small volumes, which gives status, artificially making them scarce.
The goods in the segment are sold already prepared and consumed immediately on the spot.

Condition of consumption of goods

The end consumer of Horeca products pays not only for the product itself, but also for the service received, the environment that accompanies the sale and consumption of the product.

Horeka companies included in the segment

Everyone is included in Horek existing businesses hospitality industry, including organizations serving them.

Horek companies that interact with the client in trade provide the following services:

Accommodation services. This category includes hotels, inns, hostels, apartments for rent.
Catering services. This includes restaurants, cafes, bars, food delivery, catering organizations.
Entertainment services: discos, casinos.

Companies that supply goods and services to other Horeka companies carry out the following activities:

HoReCa products in trade

Horeka products are products sold at Horeka points of sale, as well as supplied to Horeka companies for trade.

Goods for sale at Horek's points of sale:

Products for resale: alcohol, soft drinks, cigarettes, snacks. Usually, through Horek's points of sale, it is possible to actively sell exclusive or premium goods (for example, expensive alcohol).
Products with a high degree processing. They allow you to cook them quickly and with the greatest yield right before selling them: quick-frozen fruits and vegetables, semi-finished products, peeled, chopped products.

Goods to support Horeka activities include:

Equipment that is supplied to public catering places for the storage and processing of products. It can also be interior items for hotels, hotels (for example, sofas, beds, armchairs), ventilation and air conditioning systems.
Expendable materials. This concept refers to all related products supplied by the Horeka company, for example, for table setting - textiles, vases, candles, napkins, dishes; for the hotel business - towels, hygiene products, bed linen, overalls.
Advertising and marketing materials - help promote the brand. These can be branded napkin holders, awning advertising for outdoor tables, or custom-made menu folders.

For products supplied to the points of sale of the segment, the following features:

High quality product. A company buying a product must be confident in its good quality and that this quality is invariable. Otherwise, it may affect the sale of the product to the end consumer.

Food

Low cost of the product. The lower the cost of goods, the more attractive the product will be for the organization.
Stable deliveries and constancy of assortment. The goods must be in stock at the supplier, shipment must occur without delay.
High level processing of delivered goods. The less time spent on processing the product, the more attractive it is for the buyer.
Ease of communication with a supplier or sales representative, prompt resolution of all emerging problems.

Sales in the HoReCa segment, sales channels

The main feature of sales is the production of pleasure from the consumption of products, this is what distinguishes the Horek segment from ordinary retail.

There are also other features of the Horeka segment as a distribution channel:

High level of difficulty in promoting products to the market. Not every product is suitable for a particular establishment.
The company's focus on long-term cooperation.
Careful selection of supplier and product.
High competition in all departments of the segment.
Changes in fashion trends.

Usually, the points of sale of products, or points of sale, are tied to places with high traffic of people and are focused on places of their rest. For example, it will be very effective to open a restaurant near a hotel or inn. In some cities, entire streets are formed with a variety of catering companies, thereby increasing interest in this place and increasing sales.

The competition in the Horeca segment is growing rapidly. This forces companies not only to reduce the price of goods, but also to improve the quality of the goods and services provided. Only by ensuring that product suppliers and points of sale work together can maximum customer satisfaction be achieved and Horek's business grow.

The term HoReCa (in Russian - Horeka) comes from the first letters of the words Ho phone, Re staurant, Ca fe/Catering. The analogues of this term in Russian are KaBaRe (cafes, bars, restaurants) or GRB - hotel and restaurant business. This concept is little known among ordinary people, but is actively used by participants in the restaurant and hotel business.

Horeka - what is it?

Horeca is a segment of the service industry, which includes companies that provide goods and services that customers consume directly at the point of sale. It:

hotels;
hotels;
guest houses;
night clubs;
Cafe;
bistro;
restaurants, etc.

The HoReCa segment is gaining more and more weight as the number of catering establishments rapidly increases: HoReCa is today a multi-billion dollar industry. At the same time, the number of companies that specialize in the supply of goods intended for sale through Horeka points of sale, as well as for supporting the activities of HoReCa companies, is also growing.

Products

HoReCa goods in trade are:

semi-finished products intended for preparation at points of sale;
products for restaurants;
alcohol;
cigarettes;
specialized equipment for hotel and restaurant business;
goods from the no-food group, which are consumables used in servicing customers of enterprises in the HoReCa segment.

Important: CEOs of companies operating in the HoReCa segment are interested in purchasing the highest quality goods, but at the same time they do not want to overpay for the brand. Therefore, when promoting a product, it is important to be able to confidently justify its price.

Points of sale

Horeka's definition of points of sale includes all points of sale that provide catering and hospitality services. At the Horeka point of sale, the product ordered by the customer will be unpacked and converted before being sold. The additional value of the HoReCa product on sale is given by the entourage of the establishment. Most of the visitors to Horek outlets are young people.

On-trade channel - what is it?

The on-trade channel is another name for the HoReCa channel, in which the consumption of goods and services takes place directly at the point of purchase. The promotion of goods in on-trade channels has the peculiarities that for sale through outlets HoReCa purchases only a certain category of goods (depending on the specifics of the institution), the quality of which is subject to increased requirements.

Despite the small volume of sales through the on-trade channel, many companies are trying to promote their products through Horeka points of sale. This is due to the fact that at such points the choice is not too large, so consumers go for trial purchases, which allows them to influence their preferences.

It is through the HoReCa channel that manufacturers of elite products are trying to enter the market. alcoholic products, since expensive alcohol is sold better through hotels and restaurants than through Retail Stores. Manufacturers of goods such as luxury furniture or exclusive tableware consider it a great success to make a delivery to one of the Horek outlets, as this gives them the opportunity to make their brand more recognizable.

The hotel and restaurant business is one of the five most risky business areas. In this article, we will look at the distribution channel in the field of sales and customer service - HoReCa. Let's start with definitions.

Origin of the term HoReCa

This term comes from abbreviated definitions of words: Hotel(Ho) - hotel, Restaurant(Re) - restaurant, Cafe(Ca) - Café or Catering or Casino (cafe, catering, casino). A distinctive feature of this area is the sale of goods that are consumed (ready for use) directly at the point of sale. This is the most important difference between Horeka and retail. What is retail, read.

The term Horeka has several other names, for example: on-trade(unpackaged, opened, ready to eat) or food service or hospitality. AT Soviet time all this was called - the catering sector, and in the domestic space today, there are such names as: KaBaRe (cafe, bar, restaurant) and GRB (hotel and restaurant business).

In retail, the distribution channel is called the other way around. off-trade(sales in packaging to the end user). Such products can be seen in any supermarket. They are bought in packaging on their own and for final use. However, if the packaged juice is sold to a restaurant, poured into glasses and sold at a premium to a visitor, then the juice will become a product sold in the HoReCa distribution channel. In a supermarket, the same juice that the end consumer purchases for himself will already be considered a product sold in retail.

The specifics of the Horeka sales area

The HoReCa distribution channel can be safely called sales, one business sells goods for another business, only often in a smaller volume. BiTube is more associated with wholesale, and HoReCa, as you already understood, is completely different.

Example: an average supermarket buys once a month from 1000 bottles of wine, and an average restaurant or cafe buys from 20 to 100 bottles a month, but the difference is not only in this.
Another example. The supplier sells the meat to the restaurant, then they make a steak out of it and serve it beautifully to the visitor. They offer red wine, sauces for meat, live music plays, the waiter listens attentively to the wishes of the client and fulfills them with a smile. As you already understood, the client pays not only for the steak! Agree, it is not without reason that Horeka occupies its own niche in business and is singled out as a separate distribution channel.

Note that there is always an intermediate link between the seller and the end consumer: a hotel, a cafe, night club etc. This is the whole point of HoReCa - to wrap the product in a shell of service and hospitality.

The customer is always sold a ready-to-eat product, without packaging, often without a brand (or already under the institution's brand) and at a special price. The more intermediate stages a product goes through before being sold to the end customer, the more it costs him. Therefore, restaurateurs try to order already processed products, for example: potatoes that are cut into strips, meat packaged for steaks, etc. This helps to reduce time and labor costs, which significantly reduces the cost of the finished product and the competitiveness of the institution.

HoReCa products

Many people think that only food and drinks belong to the Horeka, but this is not true. This group of products also includes:

Crockery, equipment and accessories for cafes.
Cleaning products for hotels and catering.
Accessories for catering (outdoor events). Thermal containers, garbage cans, showcases, buffet bases, lighting, etc.
And of course food (semi-finished products, snacks), drinks (alcoholic and non-alcoholic), cigarettes.

As you can see, a product catalog can contain thousands of items that represent individual trade brands, of which there are also many.

For some goods, such as high-end alcohol, HoReCa points of sale are much more preferable than retail outlets (supermarkets and shops), as hotels, hotels and restaurants are more successful in selling their expensive products.

The sale of snack products (bars, croutons, chips, nuts) has also firmly occupied its niche in Horeka, as this product does not require further processing and is ready for use immediately, with an extra charge, which makes it very attractive. That is why at the bar of almost any restaurant you can see a bar with chocolate bars Mars, Snickers, Twix, Bounty, M&M's and other snack products from world brands.

HoReCa Sales Clients

Clients, as well as points of sale of the Horek channel:

Hotels, hotels, guest houses, recreation centers, cinemas.
Discos, night clubs, casinos.
Restaurants, cafes, bars, pubs, bistros.
Organizers of shows, outdoor and seasonal events.

Each HoReCa client has its own specifics, its own requirements, its own nuances. But they are all interested in the same thing:

Product quality and consistency. If a restaurant enters into an exclusive contract for the supply of wine, then it must be sure that in a year this wine will have the same product properties as the year before.
Product cost. Horek customers do not want to overpay for packaging, shrinkage, roasting, ice, etc., therefore, the lower the entry cost for them, the more attractive this product will be.
Supply stability. There should be no interruptions in supply, otherwise there may be problems with the business. Imagine leaving a cafe without bread or meat. If the client sees that many items from the menu are not available, he will remain dissatisfied and, most likely, will change the place of lunch forever.
Ease of communication with the product supplier. All issues should be resolved quickly and easily. If a cafe decides to change the menu or needs to make changes in the assortment or volume of purchases, the client (cafe, restaurant) should not wait weeks for a solution to the problem. This is the reason for the change of the Horeka seller.

Prospects for HoReCa sales

If you live in a city, you have probably noticed the trend towards an increase in the number of different recreational establishments. Night clubs, restaurants, cafes are becoming more and more. With the development of the hospitality industry, the sales market for HoReCa products is also increasing. . The needs of end users are growing every day, which creates favorable environment to increase the range of products in this segment.

But there are also problems:

The most important is competition. The one who offers the best price will receive a supply contract, and maybe even an exclusive cooperation agreement. Since it is impossible to constantly reduce the price of your product, in pursuit of a client, the (ferrets) sales managers of Horeka products are even ready to provide free equipment, just to get a cooperation contract.
There is also the problem of product quality. Find really quality goods The Horek segment is a whole problem, since the price for a quality product is sometimes not acceptable for customers, so sellers of medium quality goods at the best price remain in the game. It is quality that plays a huge role in the field of Horeka.
Fluctuations in the exchange rate strongly affect the cost of the HoReCa product, which cannot but affect the prices in the restaurant menu or the cost of a hotel room. This negatively affects not only the satisfaction of end consumers, but also the profitability of the enterprise (cafe, hotel, restaurant, etc.)
Rapid changes in fashion trends in the hotel and restaurant industry. Everything is changing: the cuisine, the design of hotel rooms, the style of relaxation. All this affects the demand in the HoReCa industry. You need to feel these changes and keep your commercial offer constantly.,

What should be a HoReCa sales representative?

As in any field of sales, Horeka requires the main thing from the candidate - the ability to sell! If more, then Sales Representative it should be:

Disciplined.
Results oriented.
Sociable.
Team player.
Be well spoken and presentable.

The duties of a HoReCa employee include:

Search for new customers in the designated area.
Increasing sales and retaining existing customers.
Negotiating with administrators, directors, owners of the hotel and restaurant business.
Maintaining client base in CRM.
Control of payments for orders and receivables.

Conclusion

As you have already understood, the scope of HoReCa sales is extensive and interesting. If you are looking for a job in the office sitting at the computer - this job is definitely not for you! You will need to go around the outlets, offer your products, work with objections, make presentations, communicate a lot.

If you have experience in HoReCa, write about it in the comments. We value expert opinion!

Features of working with food for HoReCa

In this book, the chapters on promotion methods and methods of selling products and equipment to the hotel and restaurant sector are spaced apart. These methods have common aspects, so specialists may find the repetition of ideas for promotion with a difference only in examples. And yet it different ways approach to the consumer audience. In the situation with the sale of products, HoReCa is considered as a channel, a way to the end consumer. The supplier in this case bears double responsibility - to the customer and to the customer of the customer, and this determines the methods of work, and the style of promotion, and the attitude of all interested parties to product quality.

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