chef plating gourmet food on white plate

How a GPO Can Save Your Restaurant Time and Money

As a restaurant owner, you are pulled in many directions on a daily basis. You are responsible for staffing, training, inventories, menu creation, and a multitude of other duties that are vital to your restaurant running smoothly and being profitable. Comparing and negotiating product costs can also take up a significant amount of your time, but it doesn’t have to.

Becoming part of a group that ensures you get the best pricing on products for your restaurant can increase profitability and create a streamlined process for your purchasing. Knowing you are getting competitive prices with little time and effort on your part will allow you to invest your energy into other aspects of running your restaurant.

What Is A Restaurant GPO?

A GPO, or Group Purchasing Organization, is a collective of other restaurants that join together to increase their purchasing power to negotiate better pricing on everything imaginable to run your restaurant. The GPO negotiates prices on everything from food items to uniforms to payment processors. Becoming a part of a GPO that includes your peers gives you incredible benefits that you would not be able to negotiate on your own.

Why A GPO Is A Powerful Business Tool

A GPO allows you to pool together with other restaurant owners to negotiate prices with national manufacturers and distributors. This allows you to utilize buying power that as a stand-alone purchaser you would not have. There is power in numbers and the purchasing volume created by joining together with your peers gives you leverage to negotiate lower pricing. It also allows you access to larger manufacturers who may not have been willing to service your restaurant alone.

Benefits Of Joining A GPO

Saves Money

By leveraging this group purchasing power, you can negotiate lower prices on many of your restaurant’s costs. These cheaper prices can come in the form of lower upfront costs or a refund check to make up the difference. Reducing costs on items that you purchase frequently will help boost your bottom line and increase profitability. Not overpaying while still getting a quality product is always a benefit to your business.

Saves Time

Price comparison shopping can take up a great deal of your time. Having to seek out, discuss options with, and compare pricing with multiple vendors can be time-consuming and a headache. As a part of a GPO, you know you are getting the best deal without dedicating hours of your time to reviewing cost-comparison spreadsheets.

Gives Peace Of Mind

Many restaurant owners feel that they can trust their distributors more since they are part of a GPO. They know that the distributors and manufacturers that they are purchasing from are subject to audits by the GPO. This “watchdog” feature of the GPO will allow you to be sure you are not overpaying for products and that you are getting quality goods and services.

In the past, GPOs have been seen in a negative light. Distributors were hesitant to let anyone in on their customer negotiations or give out pricing information. GPOs were seen as a threat to their customer base and their business model. However, in recent years GPOs have been increasing in popularity, and the benefits of being a part of a GPO are more widely known and accepted.

Dining Alliance is here to help you receive the best prices for your restaurant purchases and give you the negotiation power you have been looking for. We are the largest Group Purchasing Organization in the country and know the specific needs of restaurant owners.  If you have been thinking about the possibility of joining a GPO, contact us for more information or to join today.