A slew of factors, from inflation to supply chain disruptions, have driven food costs higher in recent years, compromising already-tight hotel food and beverage profit margins. Partnering with a group purchasing organization (GPO) may help hoteliers better navigate and adapt to those challenges, according to Mike Bomstad, chief sales officer, Entegra, a Sodexo company and expert in procurement solutions and cost optimization for the hospitality industry.
“A GPO doesn’t just provide cost savings, but also provides them access to procurement experts who can help forecast and mitigate cost increases and supply chain issues,” Bomstad told LODGING Back of the House.
Not only can they help hoteliers anticipate potential product shortages or price increases, but GPOs can also assist in reformulating menu items with in-stock or lower-cost products. And to better understand spending patterns and identify savings opportunities across F&B operations, Bomstad recommended tapping into data to “make more informed decisions on lower costs, contracted substitutions, and better forecast spend.”