How to Choose the Right GPO for Your Catering Business

With only months left in 2020, many industry professionals are considering ways to reduce expenses in 2021 to make up for this year’s lost revenue. While there’s no telling what next year will bring, joining a group purchasing organization (GPO) is a smart move for any caterer looking to cut costs without sacrificing the quality of inventory.

If you’re not familiar with GPOs, here’s a brief rundown of what they are and the benefits of membership. As its name describes, a group purchasing organization is a group of industry professionals that come together to increase buying power when making purchases. This concept isn’t specific to the catering and events industry — in fact, GPOs started out in healthcare before making their way to foodservice and hospitality among other industries.

When you join a GPO, you are essentially adding your purchasing needs to those of other members in order to get better prices, product accessibility, and service from food suppliers. You know bulk-purchasing often comes with advantageous discounts, but you likely don’t need to purchase all of your ingredients in bulk. With a GPO, you can still get those bulk savings while continuing to purchase only as much as you need.

As for finding the right GPO for your purchasing needs, here are the key considerations to keep in mind when doing your research.

Look at supplier information

Every reputable GPO should and will provide information about their food suppliers. After all, this is the food that you’ll end up working with, so it’s important to know their sources before signing any contracts. One of the benefits of being a GPO member is access to more brands and products than you would with a standard distributor, so look for well-known suppliers and don’t be afraid to ask questions about product availability. We are proud to work with US Foods, one of the most trustworthy food brands in the nation, which shows our members that we are dedicated to safe, responsible, and sustainable food sourcing.

Evaluate the quality of customer service

A GPO is built to serve its members and a big piece of that is how they show up when members have questions or issues about their purchases. When considering a GPO, look for one that provides easy access to representatives who are trained to assist. In particular, our program has local reps who can address concerns on the ground in real-time, with no worries about time zones or distance. Many GPO reps will also help you make the best purchasing decisions to maximize your spend while receiving the best quality available. Be sure to get in touch with customer service before joining so you can see how well your needs are met.

Read the fine print

You should never sign anything without reading all of the terms, and a GPO contract is no different. Review the details carefully and ask questions about anything that causes concern. GPO membership is not binding and should not require you to make any sacrifices; keep an eye out for red flags like restrictions on outside purchasing, cancellation fees, or mandatory purchases. A GPO may provide a suggested minimum purchasing amount, but ultimately, you should still feel the full freedom of being an independent business owner.

Joining a GPO is undoubtedly a wise move for those looking to save money and simplify purchasing decisions, but the key is to find the right fit. Always review a potential GPO’s website in its entirety and, when in doubt, reach out and ask questions. Your business’ integrity is on the line and you should only consider membership with the best, most reputable GPOs in the market.