Horeca

The term Horeca, or rather Ho.Re.Ca., stands for Hotels, restaurants and cafes (in many interpretations replaced by Catering) and, as we have already anticipated, includes the hotel industry and all those activities that gravitate around it foodbeverage e hospitality. The Horeca channel must not be confused with the large-scale distribution, therefore with large-scale distribution, which instead deals with the trade of food and drink and not with their administration.

horeca full form

What is HoReCa?

HoReCa is a short for hotel / restaurant / catering and encompasses the whole food service industry. The term HoReCa includes everything that happens at places like restaurants, cafés, clubs, pubs, hotels etc. (called outlets or points of sale from the business perspective) and is a common denominator for this sector-related jobs like chefs, waiters or restaurant managers. You can also come across the term HoReCa when dealing with producers and vendors like Coca-Cola or Heineken who sell their products to various HoReCa outlets. 

HoReCa producers and vendors

Since the HoReCa market is so big, there are loads of producers and vendors competing for market share. They are usually classified as being part of 3 basic categories:

  • Beer
  • Spirits
  • Non-alcoholic drinks

Each category also has a lots of subcategories. Take spirits, for example. There is rum, vodka, whiskey, gin and many other types of drinks, all with their own competing brands and products. Think Amundsen vs. Finlandia, Captain Morgan vs. Bacardi or Jameson vs. Tullamore Dew. 

To sum up, the HoReCa drinks market is made up of the most famous brands in the world. Even though HoReCa doesn’t actually make up the most sales for these companies, it’s in their best interest to grab as much market share as possible. Because what it lacks in sales, it makes up with brand building and supporting customer loyalty by associating a product or brand with pleasant emotions and time spent with friends or family.

HoReCa outlets or points of sale

HoReCa outlet is a place to go out for drinks or food. Sometimes called a point of sale or an establishment (again, for total clarity, it is a place where food & drinks are being served to customers who went out for a lunch, a cocktails-fuelled party or to meet their friends. 

A HoReCa outlet can be anything from local family-owned cafés, office canteens or hotel eateries to sprawling, multi-storey restaurants or global fast-food franchises. These places are the backbone of the HoReCa industry and vendors or producers compete to get their products on their menus. Imagine Coca-Cola and Pepsi competing for a slot on a famous New York club menu or Jameson trying to push out Tullamore Dew from a popular London whiskey bar and you will get the picture.

Some HoReCa outlets offer delivery services, which was especially important during the harshest Covid-19 waves. Some even don’t offer any service on-premise and rely solely on deliveries. These are called ghost kitchens.

FAQs

What does HORECA stand for?

HORECA is an acronym that stands for Hotel, Restaurant, and Catering. It refers to the collective industry that includes businesses involved in providing food, beverages, and accommodation services.

What is the HORECA sector?

The HORECA sector comprises businesses involved in the hospitality and foodservice industry, such as hotels, restaurants, cafes, catering services, and related businesses.

What are the key components of the HORECA industry?

The key components include hotels, restaurants, cafes, bars, catering services, event management, and other establishments that offer food, beverages, and accommodation services.

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