How a GPO benefits small and mid-size restaurants, hotels and resorts

Small Business Saturday, now in its fifteenth year, started to promote small businesses to holiday shoppers.

Now is a great time to prepare your business for increased traffic and sales.

But did you know that a Group Purchasing Organization (GPO) isn’t just for the largest multi-unit restaurant chains. Small and medium-sized restaurants, hotels and resorts with a single location can drive growth — and realize substantial savings — from the experts and services offered through a GPO.

When should an independent, owner-operated business work with a GPO?

Independent restaurants face distinct pressures as they try to gain ground with customers and establish or maintain their business. This happens with larger restaurants chains as well. Smaller businesses, however, may not have the tools in place to weather operational challenges like high staff turnover and profit margins that aren’t working.

That’s where a GPO can help your restaurant. If your food and supply spending is growing and you need help maximizing your budget or contract management in procurement, you may want to consult with a group purchasing organization to see how much you could save.

Leveraging the buyer power of a group

Working alone, most small businesses are so small that they rely on what distributors have in stock. They don’t have the order volume to be able to direct a distributor to fulfill their orders with their preferred products. They’re dependent on availability much more so than businesses who are leveraging the purchasing power of a group.

As the world’s largest food GPO, Entegra negotiates pricing on thousands of products and services. And because of their size, a GPO like Entegra can get favorable pricing and delivery. The savings can be significant and contribute to healthy profit margins.

Watch as Corporate Executive Chef Robert Tyler shared the top reasons they chose Entegra and why the relationship continues to work for them.

Growing with the guidance of a GPO

Cost savings are great, but what about your growth goals? “Small and medium-sized business owners and operators often open with a firm understanding of what their costs are going to be,” said Vice President of Distribution Lance Hoover. “But they lose track of their costs as prices increase. A GPO can help a small or medium-sized business evaluate their dishes from a performance standpoint, helping them review menu prices versus costs.”

A GPO can help you grow by:

• Advising you on menu pricing
• Helping you make sense of trends and how to afford them in your business
• Providing hiring and training solutions
• Giving you access to product matching and cuttings

Small and medium-sized businesses typically do not have the time or staff to operate as efficiently as they could be. That’s where a GPO can add value.

Did you know that there are no membership fees or purchasing minimums to work with a GPO? Get the facts about group purchasing organizations.

Using local and direct suppliers

In addition to getting contracted pricing on food and suppliers through major distributors like Sysco and Gordon Food Service (GFS), having access to a network of local and direct suppliers can give you cost savings and a wider selection of specialty items. Your GPO relationship can help you save on:

• Landscaping
• Furniture, Fixtures and Equipment (FF&E)
• Maintenance, Repair and Operations (MRO)
• Linens and tableware

Are you ready to take your small or medium-sized business to the next level? Contact us today to get started.