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What is Horeca? – A Potential Market with Many Opportunities

January 17, 2024

HORECA

A Potential Market with Many Opportunities

Entering the diverse and potential world of the HORECA industry, we will together explore the attractive opportunities that this market offers. What is HORECA? – an acronym combining Hotel, Restaurant, and Cafe/Catering, is not only a business sector but also a prominent topic that attracts the attention of businesses and investors.

In this article, we will delve into the potential HORECA market and the opportunities it brings to businesses, embarking on a challenging yet promising journey. Let’s discover what is horeca and leverage the unique aspects of this industry with Saigon Horeca!

Đọc bài viết với ngôn ngữ Tiếng Việt

What is Horeca? Explore Everything About Horeca

What is Horeca? – a familiar business term, characterizes businesses that specialize in supplying products in the food and beverage sector to establishments such as restaurants, hotels, and various dining service units. The origin of this term can be traced back to the Netherlands and has spread to Portugal, Spain, Belgium, becoming a common language in specialized companies worldwide.

According to Saigon Horeca’s research, the Horeca market in Vietnam has been growing rapidly in recent times. Considered the primary distribution channel for products used in the restaurant and hotel industry, Horeca includes various fields such as furniture, cooking ingredients, technology equipment, wine, and many other products.

Horeca is not just a simple concept; it encompasses various combinations such as Hotel, Hospital, Homestead, Office Building, Restaurant, Catering, Cafe, with the two most common combinations being Hotel + Restaurant + Catering and Hotel + Restaurant + Cafe. In the ever-evolving landscape, Horeca is not only a business sector but also a diverse world full of opportunities waiting to be explored.

Let’s delve deeper into the rich culinary experience and ideal spaces for meeting and enjoying quality services at restaurants and hotels. Hotel – Restaurant – Catering and Hotel – Restaurant – Cafe promise to be exceptional destinations for those who appreciate and seek a sophisticated experience.

Hotel – Restaurant – Catering

Hotel – Restaurant – Catering is a combination in the Horeca field, specializing in providing products and services to meet the business needs of restaurants and hotels. In this combination, Catering plays a crucial role, providing on-demand event services at locations like restaurants and hotels. This service includes decoration, menu consultation, table setup, food service, and even sound and light setup. Catering not only promotes the image and services of restaurants and hotels but also brings substantial profits and contributes to establishing and building their brand through comprehensive services.

Hotel – Restaurant – Cafe

Similar to Hotel – Restaurant – Catering, Hotel – Restaurant – Cafe is a Horeca combination but with the addition of a Cafe component. In this combination, the Cafe provides customers not only with a space to enjoy quality coffee and drinks at restaurants and hotels but also an ideal place for socializing, meeting friends, or conducting professional work. It is a suitable space for business discussions, enjoying fine wines, and experiencing perfect services from restaurants and hotels. This combination creates a diverse experience, offering satisfaction not only in terms of cuisine but also in terms of space and quality service.

Potential Development of Horeca in Vietnam

The Current Horeca Market in Vietnam

The boom in the tourism industry in Vietnam in recent years is not only reflected in a significant increase in the number of hotels, resorts, and accommodations but also in the strong development of Horeca distribution channels. The Horeca market is becoming extremely vibrant, especially in major cities such as Ho Chi Minh City, Hanoi, Nha Trang, Can Tho, Da Nang, where the demand for Horeca chain services is increasing.

Horeca in Vietnam is not just a place for product and service provision; it can be considered a bridge between businesses and the unique cultural experience of the country. International tourists visiting Vietnam often seek not only quality dining and accommodation but also an opportunity to admire and immerse themselves in the distinctive lifestyle of the Vietnamese people.

With a rich culinary heritage and diverse culture, businesses in the Horeca sector can leverage this opportunity to provide an excellent experience for international tourists. Through the Horeca channel, unique products and flavors can be effectively communicated to customers.

According to Tatista, the beverage market revenue in Vietnam in 2023 is projected to reach USD 27.121 billion, with the non-alcoholic and hot beverage segments contributing the highest proportions (37.7% and 36.7% respectively), and also being the two segments with the highest growth rates.

The potential of the Horeca market comes from various factors, including:

The rise of the middle and upper class.
The development of tourism.
Changes in the eating habits of the population.

Horeca industry is a market full of potential with many development opportunities. However, businesses operating in this sector need careful preparation to overcome challenges and seize opportunities.

While leading businesses in the restaurant and hotel sectors are striving to explore and exploit the vast potential of the Horeca market, optimizing sales revenue requires the effective application of Standard Operating Procedures (SOP) for each restaurant and hotel.

Challenges and Strategies for Success in Horeca Business

Some challenges that Horeca businesses must face include:

Intense competition among businesses.
Strict regulations from the government.
Market fluctuations.

To succeed in Horeca business, consider the following issues:

Enhancing market position – first and foremost, we need to identify the products that Vietnamese businesses provide that still cannot compete with international products. Horeca industry plays a crucial role in supporting Vietnamese products in the restaurant and hotel sectors to build their reputation in the market.

Customers who frequently stay in restaurants and hotels are often entrepreneurs, foreigners, or high-income groups with a modern lifestyle. They often have high demands for service quality, and to meet these demands, restaurants and hotels need to enhance service quality.

Facing the inadequacy of domestic businesses in providing these high requirements, the Horeca channel becomes an important opportunity. Hotels and restaurants can import international products through Horeca industry to ensure quality and meet the high demands of international customers.

With product diversification, careful market research, and enhanced service quality, this model not only helps domestic businesses succeed but also provides an opportunity for the world to better understand the unique culture and cuisine of Vietnam when experiencing places like resorts and hotels.

Horeca Sales Channel: Understanding the Product Distribution Model for the Restaurant – Hotel Industry

Horeca, short for Hotel – Restaurant – Cafe/Catering, is known as an essential distribution channel in the F&B (Food and Beverage) and FMCG (Fast-Moving Consumer Goods) industries. At Horeca industry, users can find everything necessary for the restaurant and hotel industry, from technology equipment to furniture, cooking ingredients, and beverages.

The Horeca distribution channel is divided into two main types in the F&B and FMCG industries:

On – Premise/On – Trade: Customers visit the business premises and use the products on-site.
Off – Premise/Off – Trade: Products are not used on-site.

Horeca industry falls under the scope of the On – Premise channel, where customers experience and use products directly at the point of sale.

To develop a robust Horeca channel, the sales organization process needs to be clearly understood.

Selecting products suitable for each sales segment is crucial. Business owners need to establish sales policies, train their teams, and implement sales plans.

With this information, Saigon Horeca hopes that you have a clearer understanding of the Horeca concept and how this sales channel plays an important role in the culinary and hospitality arts industry.

Saigon Horeca – Leading Commercial Kitchen Equipment and Bar Counter Supplier in Vietnam

Saigon Horeca is a company specializing in providing commercial kitchen equipment and bar counters, leaving a strong mark with the vision of becoming a reliable partner in the Horeca industry in Vietnam. We take pride in offering diverse services, from design consultation, installation, to operational business advice. With an experienced and professional team, Saigon Horeca commits to providing the optimal solution, meeting every need and desire of our customers.

We not only offer a diverse and rich range of products but also emphasize quality. All Saigon Horeca products are carefully selected from reputable manufacturers, ensuring they meet the highest standards and requirements from customers.

If you are looking for a reliable partner to accompany the development of your Horeca business, trust Saigon Horeca – the place to elevate the quality of your kitchen and bar space!

>>> Discover additional unique and high-quality commercial kitchen projects that Saigon Horeca has successfully completed.

+84 901 304 365

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from 8h00 to 18h00

TP Hồ Chí Minh, Vietnam

Số 40 Đường số 6, KDC Melosa Khang Điền, Phú Hữu, HCM.

contact@saigonhoreca.com

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