GPO Myths Debunked
GPO Myths Debunked
What Restaurants and Lodging Operators Really Need to Know
There are many myths about GPOs in the hospitality industry. Some operators think GPOs are only for big chains. Others believe they lose control or are locked into contracts.
The truth is very different.
For Restaurants and Lodging properties across Canada, a GPO like Entegra offers flexibility, transparency, and real Savings without giving up independence.
Let’s break down the most common GPO myths and explain what really matters.
Myth #1: GPOs Are Only for Big Chains
This is one of the biggest myths in hospitality.
The truth:
GPOs are designed to help independent businesses compete with big brands.
Independent hotels and restaurants often do not have the volume to negotiate strong pricing on their own. A GPO brings many businesses together, giving them access to pricing and programs usually reserved for large chains.
With Entegra, independent Restaurants and Lodging properties gain chain-level pricing while staying fully independent.
Myth #2: A GPO Limits Supplier Choice
Many operators worry that joining a GPO means they must buy from a short list of suppliers.
The truth:
Most GPOs offer flexibility and choice.
Entegra allows members to:
- Choose which contracts to use
- Maintain local supplier relationships
- Buy only what fits their operation
A GPO supports smarter purchasing and it does not take control away.
Myth #3: GPOs Only Focus on Price
Price matters, but it is not the whole story.
The truth:
A strong GPO focuses on total Savings, not just lower prices.
This includes:
- Rebates and incentives
- Price stability
- Reduced cost swings
- Time savings
- Better contract terms
For Restaurants and Lodging, these added benefits often create more value than price alone.
Myth #4: GPOs Are Complicated to Use
Some operators believe joining a GPO adds more work.
The truth:
A GPO actually simplifies purchasing.
Entegra helps by:
- Managing supplier negotiations
- Reducing administrative tasks
- Providing clear purchasing options
- Offering dedicated support
This saves time for busy owners, chefs, and managers.
Myth #5: You Lose Control Over Purchasing Decisions
Control is a top concern for hospitality operators.
The truth:
You stay in control when working with a GPO.
Members decide:
- What to buy
- Which suppliers to use
- When to join or leave programs
A GPO is a support system, not a rulebook.
Read the Entegra procurement playbook
Myth #6: GPOs Do Not Support Local Suppliers
Supporting local businesses is important, especially in Canada.
The truth:
Many GPOs work with both national and local suppliers.
Entegra supports local sourcing while still delivering competitive Savings. This allows Restaurants and Lodging properties to balance community support with cost control.
Myth #7: GPO Savings Are Not Transparent
Some operators worry they won’t understand where the savings come from.
The truth:
A reputable GPO is transparent.
Entegra provides:
- Clear pricing structures
- Reporting and insights
- Visibility into spending and savings
This helps operators trust the process and see real results.
Myth #8: GPOs Are Only About Food Purchasing
Many people think GPOs only help with food costs.
The truth:
GPOs support many areas of hospitality operations.
Entegra helps with:
- Food and beverage
- OS&E and FF&E
- Cleaning and janitorial supplies
- Maintenance and operating products
- Services and equipment
This broad support helps hotels and restaurants manage total operating costs.
Myth #9: GPOs Are Not Helpful During Supply Chain Issues
Supply chain disruptions have changed how operators think about purchasing.
The truth:
GPOs are especially valuable during uncertain times.
A GPO helps by:
- Offering alternate products
- Sharing market updates
- Providing supplier flexibility
- Reducing risk
For many industries, this support helps protect service and guest experience.
Myth #10: GPOs Are Short-Term Solutions
Some believe a GPO is only useful during tough times.
The truth:
A GPO is a long-term partner.
Over time, members benefit from:
- Consistent pricing strategies
- Strong supplier relationships
- Ongoing support
- Better financial planning
This long-term value is what makes a GPO a smart business decision.
Why Understanding the Truth Matters
Believing these myths can hold businesses back.
For operators, the right GPO provides:
- Real Savings
- Flexibility
- Expert support
- Better control over costs
Understanding what a GPO truly offers helps operators make informed decisions.
Final Thoughts
GPO myths often come from outdated ideas or misunderstandings. Today’s GPOs are built to support independent hospitality businesses, not limit them.
A GPO like Entegra offers far more than buying power. It delivers savings, flexibility, expertise, and support designed for modern operations.
When the myths are removed, the value becomes clear. Contact Entegra today!
