Today's volatile market demands a fresh look at procurement. 

Yes, controlling costs while maintaining quality has always been at the heart of procurement. But hospitality-driven and foodservice operators are reshaping their procurement to be a proactive business performance driver. 

• Improving visibility across the purchasing process
• Coordinating supplier relationships
• Supporting procurement planning
• Managing operational cost pressures
• Developing long-term procurement strategies

A look at procurement challenges in 2025 

In light of economic turbulence, operators in hotels, restaurants, seniors, golf resorts, and other businesses know that providing new and repeat customers with high-quality experiences isn’t getting easier. 

Hospitality and foodservice sectors are navigating an era of economic uncertainty marked by tariffs, potential trade wars and geopolitical stressors, causing:

• Inflation: Since April 2024, there has been a 4.7% increase in wholesale food costs
• Supply chain disruptions: 2024 saw a 38% increase in supply chain disruptions
• Labour challenges: There are 1.2 million jobs without a workforce to fill them across North America

With no fees to join and no order minimums, a GPO like Entegra is the secret weapon for operators looking for significant cost saving on F&B, FF&E and services and more. An extension of your existing procurement team, a GPO helps you tackle cost pressure, fluctuating material costs, responsible sourcing and supply chain interruptions. 

How Strategic Procurement Can Support Business Stability

Strategic Procurement can assist hotel businesses in improving procurement visibility, coordinating with suppliers, and managing cost pressures amid changing market conditions.

What Companies Should Consider for Strategic Procurement

Strategic procurement planning can help hospitality, foodservice, senior living, and multi-location organizations improve purchasing consistency, strengthen supplier coordination, and support more effective cost management in dynamic market environments.

• Procurement visibility — Organizations should assess how effectively they can monitor purchasing activity, supplier performance, and operational spending across categories.
• Supplier coordination — Companies should evaluate whether procurement processes improve supplier communication, enable flexible sourcing, and support long-term relationships.
• Operational consistency — Procurement strategies should be assessed on their ability to standardize purchasing practices across departments and locations.
• Scalability — Growing businesses should consider whether procurement strategies can support expansion across multiple properties, regions, or operational units.
• Cost planning — Effective procurement planning includes opportunities to improve budgeting accuracy, spending visibility, and long-term cost control.
• Long-term procurement strategy — Organizations should evaluate whether their procurement approach supports both stability and flexibility in changing market conditions.

Businesses That Commonly Use Strategic Procurement 
 

Strategic procurement is utilized in hospitality and food service companies that require coordinated purchasing and operational planning from many different aspects of their business:

• Restaurants and food service – Ensuring that purchasing activities remain consistent throughout and that food purchasing is planned accordingly.
• Hotels – Purchasing management and coordination of suppliers within all of their departments.
• Senior living – Coordination of purchasing operations and procurement planning.
• Golf resorts and hospitality – Coordinated purchasing activities in various operational sectors.
• Multi-location hospitality businesses — Centralizing procurement activities to improve purchasing consistency, supplier oversight, and operational scalability.
   

Smarter, strategic procurement — in partnership with a GPO — adds value 

In addition to cost-savings, the right GPO provides you with transformative solutions across your business: 

1. Corporate strategy: Business leaders are increasingly relying on procurement experts to shape corporate strategy. Adding more local and/or diverse suppliers to meet CSR goals and ideas for efficiently redirecting funds — think outsourced services like labor and security — are just a few ways the right GPO goes well beyond a transactional approach.
2. Operational efficiency: Busy operators need to stay focused on priorities. In addition to supporting your supply chain management, the right GPO (Group Purchasing Organization) helps you:
   1. Assessing energy efficiencies throughout your operation
   2. Reimagining menus for creative cost-saving
   3. Take decisive steps towards more strategic sourcing
3. Data-driven insights: If you want deeper insights into spending patterns, supplier cost analysis and market trends – and who doesn't – robust data is a must-have. Client reporting from Entegra help operators make data-driven decisions pre-, during and post-purchasing. 

Bottom line? Partnering with a GPO transforms your procurement efforts into a growth engine. 

If you are ready to move from reactive decision-making to proactive growth planning, download Smarter procurement in uncertain times: Growth levers for long-term success, and reach out to us here. 

Read more: 
Why join a GPO? 

FAQ

How does strategic procurement help companies manage financial pressure?

Strategic procurement enables organizations to enhance purchasing visibility, improve coordination with suppliers, and control expenditures amid inflation, supply chain disruptions, and shifting market dynamics.

Why do hospitality companies need procurement planning?

Hotels and other hospitality businesses require procurement planning to address rising operating costs, supplier issues, and operational challenges.

How can GPOs support strategic procurement?

The role of a GPO includes supporting procurement through supplier programs, procurement planning, purchasing coordination, and operational assistance for hospitality and foodservice businesses, delivered through solutions such as those offered by Entegra.

What operational areas can strategic procurement support?

Strategic procurement may help in operational areas such as food procurement, operational supply procurement, supplier relations, procurement planning, and cost control.

Why is procurement visibility important for hotel businesses?

Purchasing visibility helps hotel organizations monitor procurement processes and operational expenditures and improve procurement decision-making.

Do hospitality businesses benefit from working with GPOs?

Yes. GPO services may benefit hotels by improving coordination in procurement processes and supporting their suppliers through procurement solutions such as those provided by Entegra.