The HoReCa Sector: Why It’s Become So Volatile – And How Smarter Solutions Are Helping Businesses Adapt
The HoReCa sector (Hotels, Restaurants and Catering) has always been full of energy, people and constant movement. It’s an industry built on connection, experience and, of course, good food and drink. For many years the formula was fairly predictable: great service, reliable suppliers, staff on the floor and customers at the tables.
But over the last few years, that formula has been completely shaken up.
Costs have risen, staff have become harder to find, and customer behaviour has shifted dramatically. For many operators, what was once a stable way of doing business now feels uncertain, unpredictable and – at times – overwhelming.
The good news? While the sector has become more volatile, new technology and smarter systems are making it easier for businesses to stay in control, protect margins and unlock new revenue streams.
Let’s explore what’s changed in HoReCa, the biggest challenges operators are facing today, and how solutions such as automatic coffee machines and H2O Grab&Go smart fridges and freezers are helping HoReCa businesses work more efficiently with fewer staff and longer trading hours.
Why the HoReCa Sector Is Facing So Much Pressure
Rising material and ingredient costs
At the heart of HoReCa is food and drink. Over recent years, the cost of producing even the simplest menu has increased significantly. Businesses are now paying more for:
Coffee beans
Milk and dairy alternatives
Syrups, flavourings and sugar
Fresh produce, meat and bakery items
Packaging such as cups, lids and containers
Delivery and transport
Energy price increases have also affected everything from storage to cooking and refrigeration. All of this puts real pressure on already tight profit margins.
Many operators have increased prices, but there is a limit to what customers will accept. Finding the balance between affordability and profitability is now one of the biggest challenges in the HoReCa sector.
Labour shortages and rising staff costs
Staffing is one of the most difficult and unpredictable areas of running a HoReCa business.
Today, many operators are dealing with:
Difficulty recruiting skilled workers
Rising wages to attract staff
High staff turnover
Ongoing training costs
Difficulty covering sickness and holidays
In many cases, it’s not just about cost — it’s availability. Businesses simply cannot find enough people to operate at full capacity. That leads to reduced opening hours, limited menus and lost revenue.
It also creates an over-reliance on a small team, increasing stress and the risk of burnout.
Customer habits have changed
Modern customers expect speed, convenience and availability at all times. Traditional “busy periods” are no longer as predictable as they once were.
With more people working remotely and living flexible lifestyles, demand is spread out across the day and evening. This has increased the need for:
Self-service solutions
Contactless and cashless payment
High quality delivered quickly
Access to products outside of staffed hours
Customers still value hospitality — but they also expect instant access and flexibility.
That’s where automation and smart technology provide a turning point for the HoReCa sector.
How Smart Technology Is Supporting the HoReCa Industry
Instead of fighting against rising costs and staffing challenges, forward-thinking businesses are using technology to work smarter.
Two major game-changing solutions are:
These technologies don’t replace hospitality. They support it by reducing labour dependency, improving consistency and extending your ability to trade.
Automatic Coffee Machines: Consistent Quality with Less Labour Dependency
Coffee is one of the most profitable and important elements within HoReCa. Whether it’s breakfast in a hotel, a mid-afternoon pick-me-up in a café or an espresso after dinner, coffee is a constant.
Traditionally, quality coffee relies on skilled baristas, training and manual preparation. That comes with high labour costs and ongoing challenges.
New-generation automatic coffee machines change that completely.
These machines are designed to:
Grind fresh beans for every drink
Brew espresso at the optimal pressure and time
Automatically steam and texture milk
Create a full range of drinks including lattes, cappuccinos, americanos and speciality drinks
Store recipes for perfect consistency
This means any trained member of staff can produce barista-quality coffee — without needing specialist skills.
Benefits for HoReCa businesses include:
Faster service during busy periods
Reduced reliance on experienced baristas
Lower training costs
Less product waste
Consistent quality, shift after shift
H2O Vend supply a wide range of new-generation automatic coffee machines, along with coffee, ingredients, installation and maintenance to all business sectors – including HoReCa. This makes it easier than ever for hotels, restaurants and cafés to serve premium coffee with confidence.
Extend Trading Hours with H2O Grab&Go Smart Fridges & Freezers
One of the biggest limitations of traditional hospitality is opening hours. When staff go home, sales usually stop — even though customers are still present in the building.
Hotels, gyms, leisure centres, offices and student accommodation often have people on-site 24/7. These people still want access to:
Cold drinks
Snacks
Fresh meals
Frozen products
This is where H2O Grab&Go smart fridges and freezers become a powerful solution.
Unlike traditional refrigeration units, H2O Grab&Go is designed for unattended retail. Customers simply:
Tap their card or phone to unlock
Select their items
Close the door and walk away
Get automatically charged for only what they take
Smart sensors and software track product movement, manage stock levels and monitor temperature in real time.
How H2O Grab&Go helps HoReCa businesses
By introducing H2O Grab&Go smart fridges and freezers, businesses can:
Trade 24/7 without additional staff
Turn quiet spaces into revenue-generating areas
Offer maximum convenience to guests
Reduce queues and pressure on staff during peak times
Monitor stock remotely and reduce waste
Collect useful data on customer behaviour
They are ideal for:
Hotel lobbies & corridors
Reception areas
Cafés & restaurants for out-of-hours sales
Gyms & leisure centres
Student accommodation
Offices & co-working spaces
Entertainment venues
When combined with an automatic coffee machine, businesses can offer hot and cold drinks plus food, all around the clock – with minimal labour costs.
Once again, H2O Vend supply, install and support H2O Grab&Go solutions for all business sectors, including the HoReCa industry.
A More Resilient, More Profitable HoReCa Model
By integrating automated coffee solutions and smart retail technology, HoReCa businesses can reshape their operating model.
Instead of being limited by staffing and hours, they can:
Extend service without increasing wages
Improve consistency and quality
Increase revenue per square metre
Reduce operational stress
Offer a better overall customer experience
Staff can focus on hospitality, interaction and service — while the technology quietly handles the repetitive tasks behind the scenes.
It’s not about replacing people.
It’s about empowering them.
Final Thoughts
There’s no doubt the HoReCa sector has become more volatile. Rising costs, staff shortages and shifting customer expectations have created a challenging landscape.
But innovation is providing real solutions.
By adopting:
- New-generation automatic coffee machines
- H2O Grab&Go smart fridges & freezers
HoReCa businesses can stabilise their operations, extend their trading hours and protect their profits — without compromising on quality.
And with H2O Vend supplying the machines, ingredients, support and expertise across all business sectors, including HoReCa, the journey to smarter trading has never been easier.
The future of hospitality is not just about surviving change.
It’s about using smart technology to thrive in it.
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