Through its subsidiary HORECA.digital, the METRO Group collaborates with startups. Sabine Flechet from HORECA.digital tells us about the company's background and its activities.
Please introduce yourselves briefly.
HORECA.digital is a METRO business unit founded in 2015 with the goal of driving digital transformation in the hospitality industry. We are an international team working on various initiatives related to digitalization and innovation in the hospitality and hotel industries, and recently also in retail. We develop digital solutions for the hospitality industry, build sales channels for our own digital solutions and those of startups, and manage our METRO Accelerator programs. We also invest in startups in the fields of hospitality tech, retail tech, food tech, and food innovation, and monitor trends in the hospitality industry.
Which startups from which industries do you work with? What do you offer them?
We work on various projects with startups. As part of the METRO Accelerator Program for Hospitality, which we have been running since 2015 together with our US partner Techstars, we promote the development of innovative, digital solutions for independent entrepreneurs in the hospitality sector. Since 2017, we have also been active in the retail sector with another program. We therefore run two accelerator programs per year. Ten international teams from each of the two accelerator programs spend three months in Berlin to refine their business ideas, test products, and increase their chances of receiving funding. Both we and Techstars invest in the participating startups.
Our Investment Division is responsible for investments in the accelerator portfolio. This division also manages investments in more mature startups, often in collaboration with other professional investors. The supported startups develop solutions for the HoReCa sector, the retail sector, and the food tech sector.
In addition, we offer innovative food tech startups the opportunity to test their products in our METRO Cash & Carry and Real stores for three months through the initiative NX Food.
Another key benefit for startups working with METRO is that we support them in building efficient sales channels. This is how it works: We provide startups with access to more than 500 restaurants in Berlin, Paris, Barcelona, Milan, and Vienna. These restaurants serve as test markets where the startups' digital solutions are tested. If the solutions are successful in the test market, we offer the startups a lead generation partnership. Our sales team uses METRO Cash & Carry customer contacts and presents them with the digital solutions. If they are interested and agree, the startup receives the contact as a lead. In this way, we help startups offer the most suitable, mostly digital, solutions to independent entrepreneurs in the restaurant and hotel industry.
What criteria do you use to select companies you want to work with?
There are different criteria depending on the type of collaboration. For the METRO Accelerator programs, we select teams that are usually still in their early stages. Direct investments are for companies that must contribute to the digitalization of METRO's core customer groups or have an application at METRO Cash & Carry or Real. We look for fast-growing companies with great management teams. For the Lead Generation Partnership, we accept startups that have already achieved initial success with customers but still need to expand their reach. Regardless of the type of collaboration, the solutions and innovative ideas are intended to simplify the lives of independent restaurateurs.
Which startups are excluded from cooperation from the outset?
Companies are disqualified from investment if we cannot generate an appropriate return on investment. We also prefer teams and companies that are open to feedback. We are a customer-driven company and seek customer feedback on all products and solutions we offer or test. We are looking for startups that focus on scale and want to be successful market players. The founders must be truly motivated to drive their business forward.
Do startups have to be afraid that you will interfere too much?
Quite the opposite. Startups can expect opinions and ideas from us, or lead generation for hospitality tech. We don't want to interfere in their operational business at all. We support startups through product testing and pilot projects so that their products are better adapted to market needs and subsequently scalable. We don't plan to buy the startups or own a majority stake in them.
At what stage do startups ideally approach you?
Because we offer different formats, we can work with startups at different stages.
The trend of the year is…?
We're seeing great interest in various economic systems and data analytics for the hospitality industry. And in retail, indoor GPS systems and various sensor applications are now an innovation trend.
Last but not least: Who do startups approach when they want to talk to you?
It depends on the topic. If it's about food tech and product placements with us, interested startups can find out more and register on our website.
If you are interested in contacting the investment department for more mature startups, please contact me directly via the email address sabine.flechet@horeca.digitalOr the people of Munich simply come to our Meet-Up on November 16th here in Munich.
