We visited Horecaexchangeto find out about the evolution of the second-hand market in Horeca and we talked to Simona Panait, the project owner, about how things evolved and how this project was integrated into the Romanian market.
With over 10 years of experience in the Horeca industry and with in-depth studies in the field, Simona founded an online platform that concentrates equipment, furniture, Horeca endowments both new and second-hand. He launched the project about 2 years ago, but now the HorecaExchange.com platform has a whole other appearance. Simona shares with us today if the project has adapted and if the used Horeca market operates in Romania.
Restocracy: Hi Simona! We observe major changes in the image of the Horecaexchangeint'l platform. How have you been through these changes?
Simona Panait: Hi! Indeed, we have just completed the revival of the platform. The end of 2018 caught us in the revaluation of the project, and the year 2019 is a year of investment and major changes. We have been through a fairly complex process, to greatly streamline how both our partners and their clients interact with the platformServices. We decided to rebuild the project from scratch. It took longer than we expected, but we managed to put a product more advanced than the initial one on the market.
We have a period of almost 2 years on the market. H.E.I. It was originally launched as a pilot project. We have greatly encouraged the positive feedback from the market, but we have realised that we can and need to offer more. Incidentally, I must thank my partners for their feedback, without which we would not be here today with such a complex palette of functionalities. They helped us put on the market a product modeled on their needs. We were so uncomplicated to say so.
Restocracy: What do these changes consist of? What did your clients ask for? Can you tell us how much the investment was raised?
Simona Panait: Our partners needed something more concrete, measurable, more interaction with the potential client and a more efficient and fast link to understand why they are directly interested. In the relaqued form, the project offers both suppliers and Horeca locations, a more efficient promotional source, a fair and real-time assessment of their products on our platform, i.e. a shorter way of bidding the correct product at a price The best. The supplier can store in his or her online account all the history, including the evolution of the announcements, his interaction with the client, the Access reports, and of course the auctions he participated in. I can see customer requests on certain equipment, services or endowments and can respond with a personalized offer in real time.
About investing... We were not necessarily financially prepared for this change, but when I realised what enormous potential the platform would have if I lifted it to the next level, I didn't think so in the already existing project. Here was actually the point where we made the decision to reinvest in a new platform. I don't think the sums make a difference but the services. We've invested about €40.000 in the new project, and we're still investing.
Restocracy: is the auction service among the new functionalities of the project? What does this service serve?
Simona Panait: The auction system I implemented for the customer interested in acquisitions. We want to understand exactly what it needs and to guide it to the appropriate supplier. In this system, are the professionals of the Horeca industry, of the various services ex.: Chefs, architects, suppliers of endowments, consultations, management services, financial services, procedures implementations, etc..
The system aims to centralise as many industry-specific services as we can to be brought closer to the customer. Here we have focused heavily on the entrepreneur who does not know the industry and needs all this information: Maybe by a consulting firm, or an interior design, a Chef for customizing the menu or flow in the kitchen, building A manual of procedures specific to his location, etc.
Restocracy: Do you think there is a real problem with access to industry-specific information?
Simona Panait: We realized that this rate so high, closing new restaurants by approx. 60% in the first 8 months of opening, is greatly due to the lack of experience of the entrepreneur in this area. Many are based on a fixed amount of money they own, consider an approximate cost of purchasing equipment, spatial planning, furniture, some opinions, raw material and a number (still uncertain) of employees for openness. But much of both the fixed and recurring costs, but also the fact that this business must be sustained and pushed a lot in the first two years.
Most of those outside the industry, do not understand/do not know how to properly assess the profit margin behind the cost of a dish and consider the business to operate a restaurant is anyway profitable and especially, that would be for everyone. The difference is that those who managed to make it profitable, took some risks, both financial and personal; Days off, weekends and holidays not even part of the first two operating program; You can't stay in an office. Wait for the receipts to get to you at closure.
Also, many entrepreneurs do not know what to ask people who work for them, how or what things to keep under control, and when they hit them, they often reach saturation. Of course, the success or failure of each business depends on many more factors. But we try as much as possible to provide the solutions that are appropriate to the problem of lack of information that the entrepreneur has access to.
Restocracy: How to evaluate the second-hand market in Romania after experience with this project so far.
Simona Panait: There's a lot of room for improvement! (in some respects). The seller's side reads a fairly classic trend: we waive the goods only when it affects our business quality. We're not really willing to take this moment. And when we decide to do it, we are not willing to give up on it except on sums close to the market value.
We have a lot of work to do in educating the customer to detonate goods and to understand that the benefit of our services consists in releasing their storage space or improvised, now gotten overcrowded. These spaces often become high-risk areas of not being more prone to ISU rules.
I now remember a client with whom I have not been able to identify a correct amount of acquisition of the furniture or. He decided to keep them until he finds the buyer willing to buy them at that amount. It was a mid-size hotel with almost non-existent storage space. I figured he'd definitely have a proper solution for them. A few months away, he gets a visit from the Inspectorate for Emergency situations. The same day I get my dance phone, which asks me to pick up everything with the title of donation, just to release the same day. It seems that the value of the fine would have risen far above the amount requested by the dance on this furniture.
We must learn to give up things, because they often do not make us richer; It even creates problems of space and safety in the workplace.
On the buyer's side but things are much better. The application in the area of second hand purchases can say it has exceeded our expectations and stock. However, the client is very attentive to what he acquires, and we want him to realize that he has made a very good deal, and in no case has he acquired anything worthless.
Restocracy: How did the HorecaExchange project evolve from the first day on the market and so far?
Simona Panait: It is very important to provide a product that your client needs and not one you want as an entrepreneur. I grew up together with the project. He changed his trajectory a little, but not radical. The base product remained, but was adapted at the request of the clients and at their need. For me it is very important that this product make the life of my partners as easy as possible. The more satisfied my client is with the product, the more I shrink my marketing budget.
Restocracy: A tip for entrepreneurs?
Simona Panait: I don't think I'd be able to give entrepreneurship advice. Entrepreneurship is not a road path by rules. You fall, you get up, you fall down, you get up. The Important thing is to believe in your project! But more importantly, your product has to be public. So if I were to give advice, it is that every entrepreneur should ask his client if his product is what he really wants, and if there is room for improvement, to select the segment of clients of interest and to adapt the product according to their needs. For nothing prepares Chef cook a delicious Ratatouille for him, if his guests do not consume it.
Stay with us for the latest offers from our registered suppliers and the largest variety on second hand furniture and equipment, coming from 4&5 stars hotels and restaurants.