Updated: November 23
We all know how difficult it can be to keep costs down as an independent business owner. With margins at record lows and prices at record highs, market factors can make owning an independent restaurant or hospitality business even more challenging.
One of the best ways to control costs, maintain quality, and grow profits is with group purchasing. But what is group purchasing? How can group purchasing help your hospitality business? And, what can a hospitality management company like Morrissey Hospitality do to help you maintain, manage, and grow your business?
What is ‘group purchasing?’
Group purchasing works like this: by partnering with a much larger group, business owners can pool their purchasing power with larger restaurant and hotel companies, leverage bulk purchasing discounts, negotiate lower prices, and access other valuable benefits.
Group purchasing power can be an invaluable tool for restaurants looking to control costs and maximize profits. For independent restaurant and hospitality business owners, partnering with a hospitality management company like Morrissey Hospitality is a great way to take advantage of group purchasing and its related benefits.
What are the benefits of group purchasing?
- Negotiating Power: One of the most important benefits of group purchasing is the negotiating power gained by the collective group. By partnering with other hospitality concepts in group purchasing and harnessing the combined group’s purchase volumes, the purchasing group can negotiate better prices and terms with their suppliers, and significantly lower the costs for all members of the group.
- Reduced Cost of Goods: By buying in bulk, the cost of goods is reduced — a key factor in determining profit margins. With group purchasing power, restaurant and hospitality business owners can take advantage of the discounts obtained from the group’s combined volume and reduce their cost of goods.
- Consistent Quality: Group purchasing power can help business owners maintain consistent quality for produce and products. When business owners pool purchasing volume and buy in a group, quality and consistency are more easily maintained.
- Improved Cash Flow: By reducing costs and maximizing profits, group purchasing power can improve cash flow for restaurant owners and hospitality business owners with incredibly tight margins. With improved cash flow, owners can invest back into the business, hire more staff, update and improve menu offerings.
- Networking Opportunities: By joining a group purchasing organization, business owners have the opportunity to network with other restaurant owners, share, and learn from their experiences. These networking opportunities can help grow your professional network, improve your business, and maintain allies in your industry.
How can Morrissey Hospitality help your business with group purchasing?
Group purchasing power can be a valuable tool for controlling costs and maximizing profits in the hospitality industry. By pooling resources and negotiating better prices, you can improve your bottom line and build a stronger, more successful hospitality business.
Group purchasing power is just one of the many benefits of partnering with a hospitality management company like Morrissey Hospitality. Since 1995, Morrissey Hospitality has managed some of the Twin Cities’ most iconic hospitality properties. Today, Morrissey Hospitality boasts more than 20 unique hospitality concepts in our portfolio in the Upper Midwest. Partnering with a growing and successful hospitality management company like Morrissey Hospitality can help you control costs and grow your hospitality business in a challenging market.
Want to learn more about how Morrissey Hospitality can help you grow your business? Contact our team today!