The term HORECA is an acronym for Hotels, Restaurants, Bakery and Catering.

The HORECA industry sources varieties of food ingredients from suppliers. Hence, the companies in the category require a party to stock, distribute and supply to their users.

The distributors with proven capabilities in warehousing, logistics, decent financial background, etc qualify to become the distributors for the leading food brands in the HORECA industry. 

Most of the HORECA distributors in India are distributors for one or more major food brands. They operate under the terms and conditions of their principals, who own the brands. Therefore, the HORECA distributors are required to align with market practices to support the business of their principals. 

One such thing is extending credit payment facilities to the market, which is unsecured. Many times, the distributors undergo the risk of losing such unsecured credit sales value and end up pocketing losses. Sometimes the impact of such a loss is quite severe as they work on smaller operating margins.

In distribution trade, the business volumes and profitability are limited to their principal’s business plans and achievements. Therefore, the distributors cannot draw up plans for their business and profitability.