If you run a hotel or restaurant, you know every dollar counts. These five companies help you slash procurement costs and boost your bottom line.
The Power of Collective Buying in Hospitality
In the hospitality industry, margins are tight and every expense matters. Group purchasing organizations (GPOs) have emerged as a powerful solution, pooling the buying power of hundreds of independent properties to negotiate discounts that individual operators could never secure on their own. According to Reeco, joining a hotel GPO can reduce costs by 12-20%, translating to $30,000-$50,000 in annual savings for a typical 200-room hotel. The US GPO industry generates $7.3 billion in annual revenue across 560 businesses, and the global market is projected to grow by $2.05 billion between 2024 and 2028. For independent hotels and small chains, GPOs level the playing field, giving them access to enterprise-level pricing and streamlined procurement processes.
How We Evaluated These Cost Reduction Experts
To bring you this list, we evaluated each company on service scope, pricing clarity, and local fit. Service scope looks at the range of procurement categories covered, from food and beverage to waste management and packaging. Pricing clarity assesses how transparent each company is about fees and savings potential. Local fit considers how well the company serves US-based hospitality businesses, including regional availability and industry specialization. We also considered each company's track record and reputation in the market.
Here's a quick snapshot of the five companies we're featuring, so you can see at a glance what each one brings to the table.
| Provider | Best For |
|---|---|
| Foodbuy Hospitality | Large hotels and chains seeking comprehensive procurement solutions |
| GPO Pros - Cost Reduction Experts | Hotels and restaurants seeking a dedicated cost reduction partner |
| Reeco | Independent hotels and small chains looking for a tech-driven GPO |
| CenterPoint Group | Hotels and restaurants looking to optimize indirect spend categories |
| Precoro | SMBs in hospitality that want to combine procurement software with GPO benefits |
A Closer Look at Each Cost Reduction Expert
#1 Foodbuy Hospitality
A screenshot of the Foodbuy Hospitality website.
Foodbuy Hospitality is a powerhouse in the hospitality procurement space, leveraging the massive buying power of its parent company, Compass Group. They offer a comprehensive suite of services, including flexible hotel distribution management, culinary solutions, and procure-to-pay supplier programs. Their focus on sustainable hospitality procurement sets them apart, helping you meet your sustainability goals while saving money. As a GPO, they secure best-in-class pricing on everything from kitchen equipment to bulk food programs, as detailed in their own guide to GPOs. If you're looking for a partner with deep industry connections and a broad portfolio, Foodbuy is a strong contender.
#2 GPO Pros - Cost Reduction Experts
A screenshot of the GPO Pros website.
GPO Pros has been an industry leader since 2008, specializing in cost reduction for the hospitality industry. They offer a range of services including produce management, beverage programs, waste and recycling management, and foodservice procurement solutions. Their approach is all about leveraging the power of numbers to improve your bottom line, no matter how many locations you operate. Based in Oviedo, Florida, they bring a personal touch and deep expertise to the table. They also provide branded packaging and foodservice apparel, making them a one-stop shop for many operational needs. If you want a dedicated partner that understands the nuances of hospitality, GPO Pros is a solid choice.
#3 Reeco
A screenshot of the Reeco website.
Reeco is a modern, tech-forward GPO that focuses on leveraging data and automation to maximize savings for hotels. Their platform connects you to a network of suppliers and uses AI to optimize your purchasing decisions. They claim that joining their GPO can save you 12-20% on procurement costs, which is a compelling value proposition. Reeco is particularly well-suited for independent hotels and small chains that want to maintain operational flexibility while still accessing enterprise-level pricing. Their complete guide to hotel GPOs is a great resource for understanding how collective buying works. If you're comfortable with technology and want a data-driven approach, Reeco is worth a look.
#4 CenterPoint Group
A screenshot of the CenterPoint Group website.
CenterPoint Group is a GPO that goes beyond traditional hospitality procurement, offering a wide range of categories including MRO and industrial supplies, safety and PPE, telecom, and facilities services. They emphasize speed of execution and comprehensive process consulting, helping you streamline your entire procurement strategy. Their Prokuria AI tool adds a layer of intelligence to sourcing, making it easier to identify savings opportunities. While they serve multiple industries, their expertise in facilities and packaging solutions makes them a valuable partner for hospitality businesses. If you're looking to consolidate your indirect spend under one roof, CenterPoint is a strong option.
#5 Precoro
A screenshot of the Precoro website.
Precoro is a procurement software company that also functions as a GPO, giving you the best of both worlds. Their platform helps you manage your entire purchasing process, from requisition to payment, while also providing access to pre-negotiated contracts with suppliers. This dual approach is ideal for businesses that want to maintain control over their procurement while still benefiting from collective buying power. Precoro's blog is a treasure trove of information on GPO best practices, as they explain the pros and cons of group purchasing. They are a great fit for small and medium-sized businesses that need a scalable solution. If you're looking to digitize your procurement and save money, Precoro is a practical choice.
How to Choose the Right Cost Reduction Partner
When you're picking a GPO, start by assessing your specific needs. Are you a small independent restaurant or a large hotel chain? Different GPOs cater to different scales. Look at the categories they cover—some focus on food and beverage, while others offer a broader range like packaging and waste management. Consider the technology they offer; if you want to automate your procurement, a platform like Precoro or Reeco might be a better fit. Also, think about the level of personal support you want. A company like GPO Pros offers a dedicated approach, while larger GPOs like Foodbuy might be more self-service. Finally, check their track record and ask for references to ensure they deliver on their promises.
Streamlining Your Procurement with Automation
Many of these GPOs now integrate with procurement software to automate the entire purchasing cycle. You can set up automated purchase orders, track spending in real-time, and even get AI-driven recommendations for cost savings. For example, with Precoro, you can manage your entire procurement process digitally, while Reeco uses AI to optimize your purchasing decisions. This automation not only saves time but also reduces the risk of maverick spending, ensuring you always buy through your negotiated contracts. By combining GPO membership with automation, you can achieve even greater efficiency and cost savings.
Making the Right Choice for Your Bottom Line
Choosing the right cost reduction partner can have a significant impact on your hospitality business's profitability. Whether you opt for a comprehensive GPO like Foodbuy, a specialized expert like GPO Pros, or a tech-driven platform like Reeco, the key is to find a partner that aligns with your operational needs and goals. Remember, the power of numbers is real—by pooling your purchasing volume with others, you can unlock savings that would otherwise be out of reach. Take the time to evaluate your options, and you'll be well on your way to setting the table for savings.