A lot of Vietnamese enterprises now dream of becoming the suppliers of high grade foods to hotels, restaurants and cafes (Horeca). However, it’s not easy to set foot on the lucrative market.
The success stories
Minh Long 1, a chinaware manufacturer, has been very successful in providing products to Horeca market. Ming Long 1′s products have been present at a lot of five star hotels nationwide.
Ly Ngoc Minh, director of Minh Long 1 said the company has to spend much time and made heavy investment to create the products suitable to high end hotels, restaurants and resorts. The products used at the luxurious hotels need to be luxurious and fashionable. Especially, Minh Long 1′s products are diversified with a wide range of 100 items.
Minh said that Minh Long 1 attempts to penetrate more deeply into the market, especially the hotels and restaurants in sea tourism cities of Quy Nhon, Da Nang and Nha Trang.
“We hope to dominate the Horeca market segment in Nha Trang in three months,” Minh said.
Dried seafood products (Sea Chip) of Saigon Food have also been present at many hotels and restaurants. According to Saigon Food’s deputy director Le Thi Thanh Lam, the company targets the Horeca market because the market also requires the products with similar features like export products. Meanwhile, the suppliers to Horeca market can see big advantages that they do not face risks in payment, and they only have to pay low for transport fee.
However, Lam said Horeca is a choosy market which requires high quality, absolute food hygiene, good appearance, big supplies and standards tastes that fit different groups of consumers. It’s more difficult to process food for Horeca market than for household clients, who just favour the convenience. Especially, the products need to be made in a finical way.
Kim Hang Company, a kitchenware manufacturer, which well understands the high requirements of Horeca market, has set up a production line specifically making Horeca products.
“Durability and convenience are the big competitive edges that allow manufacturers to sell goods to Horeca. However, it’s necessary to provide associated services, from idea development, design to production, equipment provision and installation,” said Huynh Thi Hue, director of Kim Hang.
The market lucrative, but not reserved for everybody
It’s not easy to become the product suppliers to the enterprises belonging to Horeca system. Manufacturers need to prove that they can satisfy different technical requirements to be able to catch the eyes of clients. Horeca enterprises only choose high quality, beautiful and original products.
Than Thi Hoa Nhien, Assistant to Buy director of Caravelle Hotel said that the hotel has paid more attention to developing Vietnamese cuisine and it has been looking for domestic partners.
Caravelle has cooperated with SG Food, Tai Ky and Hai Loc, the food suppliers, in organising buffets. What the hotel seeks from Vietnamese suppliers is the capability of providing products in big quantities and original products. The products provided to Caravelle should not appear in the market in masses.
The Vietnam Air Caterers, which supplies meals to 32 airlines from different countries and make 18,000 servings per day, is really a big client on the Horeca market that all food suppliers wish to cooperate with.
Quach Thien Tuong, a senior executive of the company said his company has a very high demand for vegetables, meat and fish made domestically. However, very few Vietnamese enterprises can satisfy the requirements.
“Since our clients are choosy ones, we need 5-star products. Therefore, we need the enterprises which can satisfy high requirements in terms of production, packaging, carrying and preservation,” he said.