Importance of Logistics in the HoReCa industry.
We have been closely working with the HoReCA Industry for the past 5 years, helping them deliver from their central kitchen to outlets. HORECA clients can be anyone from this industry like hotels, cafes, lounges, restaurants, those who deliver food and beverages to railways stations, airports, ships etc. We have seen how logistics change the dynamics of the HoReCa sector for better.
They say there are 10 basic pillars of HORECA sales which can help food businesses when they tie up with a logistics partner like Just Deliveries.
These are product, price, placement, PR, promotion, proactiveness, patience, packaging, positive attitude, product knowledge
We might not be able to help you with all of these areas at one go but slowly and eventually these are achieved one by one.
How our logistics solution helped a HORECA company?
The success rate of a newly launched product or ingredient in the food supply chain is 0.2%. This is because very few newly launched products can penetrate into the local restaurants, cafes, and grocery stores. In fact, the penetration level of most food companies is 30-40%. A delivery logistics solution like Just Deliveries can enhance this with greater outreach with timely hygienic deliveries.
Getting Better Semi-cooked Inventory
Having a good delivery logistics partner directly influences the sales of products for those in HORECA business. Products like sauces, gravies, Semicooked food items are the key for central kitchens. Often these are perishable and temperature sensitive in nature. So, they need a faster and better delivery facility using AC delivery vans with a temperature control range of -25 to 25 degree Celsius.
Builds Brand Identity & Image
Deliveries like these, reduces spoilage and wastage in the ingredients used by the central kitchens, resulting in lesser loss in revenue and better brand awareness.
This is a common standardization process for restaurants, cafes, and central kitchens who seek to maintain a uniform quality in all their outlets and a timely delivery service is a backbone of that. This helps in consolidating the brand image and identity of HORECA ventures.
Efficient Pricing & Staff Training
It might not seem apparent at the onset but our 5 years of experience in the HORECA segment has shown us the benefits of a good delivery partner in efficient product pricing and training.
With an instant same day delivery feature, our clients like the Nutcracker cafe could easily standardize the quality of food, making them aware what kind of pricing is profitable. So, it indirectly helped in better pricing of their cafe menu as the problematic expenditure and losses were eliminated.
Similarly, this standardization meant they now knew when to expect the delivery of the Semicooked items required for running the cafe, and also about the pricing, maintenance and quality of the products. So, they could get their staff trained accordingly, reducing the gap in business.
Proactiveness & Better Sales
It’s better to be active in this regard and deliver the goods instantly often on the same day. So, with a good delivery logistics partner your proactiveness increases and so does your sales as more and more ventures start to rely on you.
One of our clients, Annie Bafna, the Founder of Mumbai based vegetarian cafe “The NutCracker”, underlines this when she explains how her dream of mastering the “Farm-to-fork” concept excelled with our service. With the correct knowledge of the market and products that were needed for her business we were able to deliver better inventories to her cafe.
This meant better resources to make better end products which ultimately helped in their sales.
Indirect Promotion & PR
This also meant minimizing the delivery risks including costs of managing delivery vans, paying the driver and the manager to get the fresh produce from the market.
By outsourcing the delivery logistics to us, they were able to save both time and money which they could invest in bettering their service. And as soon as the word of mouth went out about their delicious and fresh “Farm-to-fork” food they were able to get more customers. So, indirectly, we served as a good PR and promotion for this cafe in the HORECA.
Better Vendors & Suppliers
Investing in HORECA not only means a supply chain reliability but also ensures 75% greater sales than retail. Hence, big suppliers often rely on the HORECA model and for that they tie up with restaurants, cafes, canteens, cloud kitchens etc with a trustworthy long-term logistics partner. More often than not unreliable temporary logistics partners like the delivery apps cut a dent on revenues.
What one needs here is a clear cut company oriented logistics solution from someone who understands your product and market, to be there in time for your business. That’s exactly what we did with The NutCracker.
Better Product & Positive Attitude
Chef Anand from the NutCracker team further elucidates this when he explained how acquiring better semi cooked food items like sauces, gravies etc from the market in time greatly enhanced their cooking and helped in getting a positive attitude in the kitchen. As a result of this, the food instantly became better and so did the service.
So, you see how a good delivery logistics partner like us can help those in the HORECA industry!