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3 ways strategic procurement can transform cost pressure into an advantage
3 ways strategic procurement can transform cost pressure into an advantage
June 24th, 2025
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.
Smarter procurement in uncertain times: Growth levers for long-term success dives into three strategies for transforming procurement into a growth engine.
A look at procurement challenges in 2025

In light of economic turbulence, operators in hotels, restaurants, senior centers, golf resorts, schools 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 costs1
- Supply chain disruptions: 2024 saw a 38% increase in supply chain disruptions2
- Labor challenges: There are 1.2 million jobs without a workforce to fill them3
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.
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:
- Corporate strategy: Business leaders are increasingly relying on procurement experts to shape corporate strategy4. 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.
- 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:
- Assessing energy efficiencies throughout your operation
- Reimagining menus for creative cost-saving
- Meeting regulatory requirements by training kitchen staff
- Take decisive steps towards more strategic sourcing
- 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 platforms like Entegra PurchasingIQ 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?
Keeping customers satisfied: Helping you navigate 2025 federal policy changes
1 https://restaurant.org/research-and-media/research/restaurant-economic-insights/economic-indicators/food-costs/
2 https://resilinc.ai/blog/resilinc-reveals-the-top-5-supply-chain-disruptions-of-2024/
3 https://www.uschamber.com/workforce/understanding-americas-labor-shortage
4 A new era for procurement: Value creation across the supply chain