Развитие международного рынка общественного питания и профессионального оборудования для индустрии HoReCa / Development of international markets of catering and professional equipment for the HoReCa industry
Аннотация
Public catering is an independent branch of the economy, consisting of enterprises of various forms of ownership and organizational and managerial structure, organizing catering services for population. This is one of the basic sectors of the economy, which has been developing for a very long time and is changing along with society and new technologies. The catering market was constantly changing, but not only in terms of customer preferences, but also in terms of new formats of establishments. The fast-food format that still holds the leading position has been replaced by fast casual. The catering crisis, which began in 2020 due to the spread of the coronavirus, launched a huge process to change the typical idea of what a successful restaurant business model should look like. Active digitalization, the widespread introduction of delivery services, and the increasing development of kitchen factories that provide food for dozens of eating places. These are processes that have started recently but have received a tremendous boost and leap forward because of the coronavirus. It becomes interesting to see how the catering market has evolved over the past few years, and which business model is now the most stable and profitable. Next to the food and beverage market there is always a less visible market of manufacturers of professional equipment for HoReCa. Less visible due to the lack of great interest from analysts and researcher compared to other industries and even more so compared to the topic of catering. However, without this industry catering market cannot exist, since all food must be prepared with professional equipment. Since the catering market depends on the manufacturers' industry, it becomes interesting whether there is an inverse correlation: whether the equipment market repeats the dynamics of the catering market. This can be traced back to the shock event of the 2020 crisis. Despite the fact that during this spread of the COVID-19, many catering establishments closed, many new ones came in their place and needed equipment to launch. It also becomes interesting to look at the equipment manufacturer's business model in this market, as this has not been fully revealed before.
To achieve these goals several tasks should be solved:
– To describe the current challenges and trend in the development of international markets of catering and professional kitchen equipment for the HoReCa industry (CPKEM);
– To find out the specifics of international professional equipment manufacturing market;
– To evaluate the impact of social and economic factors to the international catering market;
– To analyze the development of key participants of international CPKEM;
– To develop the recommendations for the development of Finist company from Yekaterinburg based on the results of the research;
– To investigate the CSR cases of the companies of international catering market.
The object of the study are socio-economic relations in the international market of catering and professional equipment for the development of HoReCA industry. Subject are challenges and opportunities of Russian companies’ development on the international CPKEM on the example of Finist (Yekaterinburg).
Based on the objectives, the following results were obtained.
First, it was found that the format of limited-service restaurants was the least affected by the crisis in 2020. Second, the impact of socio-economic factors on the catering turnover was confirmed with fixed effect regression. For this were taken 5 indicators from WorldBank [51] and index of turnover of F&B services from Eurostat [61] as dependent variable for 26 European Union countries for the period 2008 – 2020. Third, it was found out the market of professional kitchen equipment follows the trends in catering market. During the crisis of 2020 it was a same sharp decrease in sales up to in the first and second quarters. The analysis of available sources on the equipment market has shown that the best way to research this market is to study the national associations of professional kitchen equipment manufacturers. A study of the national associations of manufacturers from France, Germany, and Italy led to the conclusion that during the crisis in 2020, export sales fell much harder than import ones. Fourth, such analyses as 7s McKinsey, the Value Chain, the 5 Forces revealed the structure and problems of the current business-model of the Finist factory. Author has made several recommendations about introducing new departments and implementing new ways of promoting and selling. Finally, examples of CSR and SDG practices in companies from both markets were shown. Moreover, it has been confirmed that the implementation of these practices has a positive impact on the financial results of companies.
The results of the research will be useful for entrepreneurs or international companies who wants to launch new establishment in a new country. As the econometric study showed, when choosing a region, it is possible to consider the dynamics of its socio-economic indicator, because a positive trend will also indicate the growth of the dynamics of public catering. Also, through the analysis, we can conclude that it is less risky to open a fast casual establishment than the other type of institution. The study of the market of manufacturers of professional equipment for catering equipment based on data from the European national associations revealed that this industry follows trends and dynamics of the development of the catering market. A study of the national associations of manufacturers in Germany, Italy and France revealed that neutral, refrigeration and heating equipment players are the most numerous in the equipment market. Also in these three countries, export sales account for more than 40%. Finally, after analysis of the business model of the Finist factory, it was recommended for the company to introduce R&D department, service department, hire a tenderer and a specialist in international market development. Also, several possible actions were given to increase sales using modern marketing techniques for demand forecasting.
To achieve these goals several tasks should be solved:
– To describe the current challenges and trend in the development of international markets of catering and professional kitchen equipment for the HoReCa industry (CPKEM);
– To find out the specifics of international professional equipment manufacturing market;
– To evaluate the impact of social and economic factors to the international catering market;
– To analyze the development of key participants of international CPKEM;
– To develop the recommendations for the development of Finist company from Yekaterinburg based on the results of the research;
– To investigate the CSR cases of the companies of international catering market.
The object of the study are socio-economic relations in the international market of catering and professional equipment for the development of HoReCA industry. Subject are challenges and opportunities of Russian companies’ development on the international CPKEM on the example of Finist (Yekaterinburg).
Based on the objectives, the following results were obtained.
First, it was found that the format of limited-service restaurants was the least affected by the crisis in 2020. Second, the impact of socio-economic factors on the catering turnover was confirmed with fixed effect regression. For this were taken 5 indicators from WorldBank [51] and index of turnover of F&B services from Eurostat [61] as dependent variable for 26 European Union countries for the period 2008 – 2020. Third, it was found out the market of professional kitchen equipment follows the trends in catering market. During the crisis of 2020 it was a same sharp decrease in sales up to in the first and second quarters. The analysis of available sources on the equipment market has shown that the best way to research this market is to study the national associations of professional kitchen equipment manufacturers. A study of the national associations of manufacturers from France, Germany, and Italy led to the conclusion that during the crisis in 2020, export sales fell much harder than import ones. Fourth, such analyses as 7s McKinsey, the Value Chain, the 5 Forces revealed the structure and problems of the current business-model of the Finist factory. Author has made several recommendations about introducing new departments and implementing new ways of promoting and selling. Finally, examples of CSR and SDG practices in companies from both markets were shown. Moreover, it has been confirmed that the implementation of these practices has a positive impact on the financial results of companies.
The results of the research will be useful for entrepreneurs or international companies who wants to launch new establishment in a new country. As the econometric study showed, when choosing a region, it is possible to consider the dynamics of its socio-economic indicator, because a positive trend will also indicate the growth of the dynamics of public catering. Also, through the analysis, we can conclude that it is less risky to open a fast casual establishment than the other type of institution. The study of the market of manufacturers of professional equipment for catering equipment based on data from the European national associations revealed that this industry follows trends and dynamics of the development of the catering market. A study of the national associations of manufacturers in Germany, Italy and France revealed that neutral, refrigeration and heating equipment players are the most numerous in the equipment market. Also in these three countries, export sales account for more than 40%. Finally, after analysis of the business model of the Finist factory, it was recommended for the company to introduce R&D department, service department, hire a tenderer and a specialist in international market development. Also, several possible actions were given to increase sales using modern marketing techniques for demand forecasting.