Explore webinar takeaways on adapting hotel procurement to changing tariffs and regulations, and see how GPOs help hotels stay ahead.

In case you missed it, here are the highlights from "Nimble Moves: How Hotel Procurement Adapts to Policy Changes," a HOTELS Magazine webinar sponsored by Entegra.

Participants:

• Jason Reader (COO, Remington Hospitality)
• Debbie Young (VP of Strategic Sourcing & Contracting, Loews Hotels & Co)
• Jeffrey Simmons (VP of Supply Management, Entegra/Sodexo)
• David Eisen, Editor-in-Chief of HOTELS Magazine, moderator

Introductions

Tariffs — and their impact on hotel procurement — kicked off the conversation.

Contingency planning is top of mind for Remington Hospitality’s Jason Reader, who manages 137 hotels and recommends that operators “plan for the worst and hope for the best.”

Loews’ Debbie Young discussed rising costs that will lead to renegotiating contracts and leaning into their diversified supplier pool. Debbie also cited the vitality of key supplier partnerships and monitoring areas of largest spend first when it comes to tariffs.

Entegra’s Jeffrey Simmons recommended voicing concerns and issues with the AHLA (American Hotel & Lodging Association). While a few Entegra suppliers have reached out to him to share that price increases are likely underway, most of them are still reviewing their options and building their financial models, not unlike the approach taken during Covid readiness.

Now more than ever, hotel brands will work closely with their GPO and tap into technology to stay nimble and drive success. Read on for additional highlights and be sure to watch the webinar for yourself!

Highlights: Tariffs and China, Canada, Mexico and more

Adapting procurement strategies to navigate challenges posed by tariffs is job one, including:

• Contingency planning, supplier diversification, and strategic thinking will help handle uncertainty.
• Re-evaluating supplier relationships in the face of rising import costs and exploring alternative sourcing methods.
• Potentially shifting sourcing to the U.S. or Mexico.

Highlights: Supply chain and sourcing

While there is some hope that sourcing issues may ease in six months, the panelists discussed:

• Cushioning existing inventory to mitigate tariff effects
• Staying aware of suppliers who will absorb some tariff costs to retain clients.
• Tracking inflation-driven cost hikes and monitoring pricing closely as there is a push to build domestic capacity

Highlights: Food and beverage

• Controlling food and beverage costs through:
  • Recipe and menu adjustments
  • Portion control
  • SKU consolidation
    Entegra Culinary Consulting can help with these specific items and many more.
• Improving kitchen efficiency and processes to reduce waste.

Highlights: Technology and AI

Procurement technology, with its real-time tracking and logistical transparency, is key. Entegra’s client platform, Entegra PurchasingIQ, for example, provides a one-stop digital GPO platform that helps operators make data-driven purchasing decisions with confidence.

• Push the envelope with tech adoption like mobile check-in, AI, and real-time data to improve procurement.
• Combine robotics and interdepartmental collaboration to optimize operations.

Contact Entegra to discuss how Entegra can help you weather the storm of policy changes, tariffs, and supply chain challenges, and learn about the many other business-boosting advisory services Entegra provides.