HORECA (Hotel Restaurant Catering Café): A Growing Marketing Channel in the Foodservice Industry

In business marketing terms, HORECA represents a sector or segment within the foodservice industry that includes institutions responsible for preparing and serving food and beverages — such as hotels, restaurants, catering services, and cafés.

The term HORECA comes from the Dutch language and can be broken down as:

HO = Hotel, RE = Restaurant, CA = Catering or Café.

Though this channel first saw rapid growth in Europe and was mainly used within European and Asian business contexts, it has now become familiar even in U.S. industry lingo as global trade becomes more interconnected.

Similar sectors exist in other countries. For example, in the UK, a similar industry is referred to as the Catering and Hospitality Industry, though it’s not an exact match.

In the U.S., the equivalent term is usually Restaurant Industry, with other expressions like Foodservice Outlet or Hotel and Catering Industry also used.

In Australia, it’s often called the Restaurant and Catering Industry or the Restaurant Sector.

To understand HORECA better, remember one key characteristic:

The product (food or beverage) is consumed directly at the point of sale.

Examples include:

Enjoying a luxurious meal served with utmost hospitality at a restaurant inside a resort.

Sipping coffee at a café located inside an airport, while watching airplanes land and take off.

Dining at a five-star hotel's restaurant.

All these are clear examples of foodservice channels that fall under the HORECA umbrella.

HORECA customers include:

• All types of star-rated hotels
• Fine dining restaurants
• Quick-service restaurants (QSRs)
• Cafés, lounges, airports, railways, ships
• Food and beverage project leads
• Hotel CEOs and Managing Directors
• Pre-opening team members
• Chefs, procurement managers, store in-charges
• F&B managers, front office staff, housekeeping, engineering teams
• Large QSR chains and anyone involved in food or beverage supply chains.

HORECA is one of the fastest-growing segments in the hospitality industry due to several reasons:

• Greater accessibility and popularity of such establishments
• Tailored marketing campaigns to promote business growth
• While new to many companies, understanding of HORECA’s benefits is increasing

HORECA marketing is specifically designed to promote and advertise businesses that cater to the hospitality industry. It differs from general restaurant advertising by employing various tools to achieve business objectives.

In today’s highly competitive restaurant market, this approach includes all necessary tools to help businesses stay ahead.

Just as General Marketing includes the 4 Ps — Product, Price, Place, Promotion,

HORECA Marketing includes an extended version called the 10 P’s:

• Product
• Price
• Placement
• PR (Public Relations)
• Publicity
• Pro-activeness
• Patience
• Packaging
• Positive Intention
• Product Knowledge

Relationship Between the Food & Beverage Industry and the HORECA Sector

While HORECA primarily refers to the integration of hotels, restaurants, and catering or cafés, the food and beverage industries are closely interconnected within it.

In developing countries, rising incomes and adoption of modern lifestyles have fueled the growth of the HORECA food and beverage market, and this trend is expected to continue.

The emergence of fast-food chains, clubs, restaurants, caterers, and hotels has positively influenced market growth. As a result, HORECA has evolved into multiple sub-segments with strong ties between food and beverages.

In fact, the HORECA beverage market commands a significant share in the U.S. beverage sector, demonstrating this relationship.

FMCG companies and online retailers are now targeting entry into the HORECA beverage market using diverse and innovative strategies. They are increasingly shifting away from traditional retail channels to boost revenues.

Major B2B wholesalers like Walmart and Metro Cash & Carry are integrating into the global supply chain of fast-moving consumer goods (FMCGs), partly due to the rise of the HORECA beverage industry.

Consumers have diversified their preferences for food and beverage products, which has driven higher demand for quality raw materials.

Even online retail players like FMCG companies are now entering the HORECA segment. In recent years, the hospitality industry, also known as the HORECA industry, has become one of the fastest-growing global markets.

Major B2B wholesalers like Metro Cash & Carry and Walmart are increasingly becoming part of the FMCG supply chain due to their role in serving the hotel industry.

However, only a few companies have a strong go-to-market (GTM) strategy tailored for HORECA. According to Metro’s leadership, many companies lack an effective market strategy for this sector — which may explain why the success rate of FMCG product launches is just 0.2%. The absence of a universal distribution strategy is a major reason.

As an alternative model and independent segment, HORECA is gaining more attention than traditional retail. Alongside traditional Kirana stores, modern trade, and general trade, FMCG companies are now placing stronger emphasis on the HORECA channel.

Over the past decade, a large number of organized food processors have emerged with a strong focus on HORECA. Frozen food manufacturers and marketers are gaining dominance in this industry because much of their business comes from this channel.

The growth of the food and service industry has increased demand for high-quality raw materials in organized foodservice sectors. This, in turn, promotes better practices and technology transfer.

Along with growth, the sector is also reshaping the lifestyle of modern consumers. It is essential to identify the drivers shaping this new commercial ecosystem.

Automation is now widespread in HORECA, which helps the sector develop rapidly and innovatively.

CHD Expert is a global leader in data collection, management, and analysis for the away-from-home global foodservice market.

CHD Expert supports members of the foodservice channel with a global outlook and deep industry understanding.

They have developed a product called the HORECA Barometer, which helps:

• Measure confidence levels among HORECA operators
• Identify financial well-being of operators
• Analyze evolving market trends and opportunities

If you’re interested in learning more about HORECA or the foodservice industry in general, reach out to CHD Expert for insights.

From this article, it’s clear that HORECA refers to businesses involved in foodservice, such as hotels, restaurants, and catering/cafés. The term now also includes other retail foodservice sectors like amusement parks, resorts, hotels, and the travel industry.

With the rise of food trucks, pop-up restaurants, and home kitchen dining models, HORECA is evolving into a new era of foodservice and dining culture.