Our company also went through a difficult period. The long closure of accommodation facilities and catering services, including hotels, guesthouses, restaurants, and others, made it clear that operating during such a time would be very challenging. That is why we eagerly awaited better times. Fortunately, those better times arrived during the summer months of this year. Tourism revived, people started vacationing again, visiting restaurants, and organizing weddings and various social events. This resurgence positively impacted our production. Business owners began furnishing their establishments in a significant way, and the demand for our products steadily increased. Our employees performed admirably, helping to partially offset the production losses from the previous months. Therefore, we can assess the remainder of the period positively.

"We achieved very good results. The demand for our products increased significantly. At certain times, we couldn’t keep up with production, so our clients had to wait several days for their orders. However, many understood the situation and accepted it as a fact," said Milan Franek, CEO of Horeca Textil.

New Customers

In addition to increased demand and stable sales, a positive development has been not only the continued loyalty of our regular customers but also the arrival of new ones. "May was a particularly strong month. I attribute this to the lessons learned from last year's customers. They ordered more, especially hotel textiles, such as sheets, towels, and bath towels. We reached our peak in June and July. There was less demand for restaurant textiles during that period, as weddings were postponed to later in the summer," explained the manager. The predictions were accurate, and restaurant textiles experienced their biggest boom in August when weddings were held everywhere.

"Pensions and hotels had more guests, which required a greater amount of laundry. Let me explain it simply: as a facility operator, you need linens for each bed, and you have to multiply that by three, since many guests only stay one night. The beds must be changed after each client, and when you consider that the laundry service cannot process clothes from day to day or just wait, it becomes clear that sufficient supplies are essential. Therefore, the owners were compelled to purchase more sheets, towels, bath towels, and other hotel textile products," continued Franek.

Expensive Cotton

We are seeing increased demand and a shortage of goods in many sectors. The automotive industry is facing a lack of components, the information technology sector is struggling with a shortage of chips for devices, and the construction industry is going through a challenging period. As a result, customers often don't focus on prices; their priority is securing the necessary goods, which are in short supply on the market. This leads to a situation where the cost of goods is significantly higher, and customers simply have to pay more. However, Horeca Textil has been accommodating to its clients and has not drastically increased its product prices, though a zero price increase is impossible.

"The price of cotton, our primary raw material, has skyrocketed. Specifically, it has increased by one hundred percent, which is a huge number. Despite this, we have only minimally raised our product prices," explained Franek. He also noted that prices might be adjusted later. Some producers in the hot pepper segment have already been forced to raise prices by tens of percent this year.

What's Next?

No one can answer this question with certainty today. However, it is a fact that our company reached its peak sales during the summer months. The pandemic situation is now rapidly deteriorating, and we are feeling the effects. Demand is dropping significantly, and it could worsen by the end of the year.

"The current situation and the regulations in place have led to a decrease in orders. There are fewer weddings, fewer celebrations, and hotel conferences are practically nonexistent. When we add the low vaccination rate and the tightening of measures in our country, a decline in revenue is inevitable," explained Milan Franek. The uncertainty of upcoming restrictions looms over us. "We hope the situation doesn’t mirror last fall and this past spring. The winter season will be a key factor, especially whether ski resorts remain open," he continued. Franek acknowledges that it is unrealistic to rely on just three or four strong months to sustain the business throughout the year, and that Horeca Textil will likely continue to feel the impact of decreased sales. "For now, our company is operating in a standard mode. We make advantageous purchases, and thanks to our in-house production, we have a stabilized situation. A significant advantage for us is also buying materials directly from the supplier, rather than through multiple intermediaries," he added.

So, all we can do now is wait and see how the pandemic situation unfolds. No one can predict the exact impact it will have on various aspects of social life. But one thing is certain: if a similar lockdown occurs, as it did at the turn of the year, many businesses may not survive another round of closures. This would inevitably affect our company as well, leading to a drop in orders, low demand, and reduced revenues. Let's keep our fingers crossed and hope that we can navigate the coming days and weeks with as little damage as possible.