Finding the Right GPO for You in 2025

Going into 2025, many catering professionals are setting their sights on increasing their bottom line as a way to safeguard their companies from an unpredictable economy. But when faced with a volatile market, raising prices to offset inflation only goes so far. 

There are many other strategies to boost profitability, like launching new offerings and targeting new audiences to diversify revenue streams. However, these approaches all require a significant investment of time or capital to pull off successfully. While they may fit into your 2025 plans, don’t overlook the other side of the coin: reducing expenses. 

In many cases, saving money involves much lower-hanging fruit for busy caterers. Training your staff to reduce food waste, maintaining appliances for optimal performance, and coordinating employee schedules to limit overlap—these are just a few easy ways to start shaving dollars off your monthly overhead. 

Another simple way to cut costs is by joining a group purchasing organization (GPO). By leveraging the collective buying power of multiple businesses, GPOs negotiate significant discounts and streamline procurement, making them an invaluable resource for catering professionals. But with so many options on the market, finding the right GPO for your business can feel overwhelming. 

Choosing a GPO is more than just a cost-saving exercise; it’s about aligning with a partner that understands your needs. The right GPO should provide access to high-quality ingredients, reliable vendors, and flexible terms. If saving money is in the cards for 2025, here’s how you can find the best fit for your company. 

Get clear on your needs 

Start by auditing your purchasing process to get a better understanding of the items you buy most. How often do you order them? What is the average cost for each item? Does demand change from season to season? Review recent purchase orders so you can assess potential GPOs against your typical purchasing habits. 

Research options in your market 

It’s time to do your homework! Search for GPOs that serve your market, both in terms of geographical location and niche market. For instance, if you exclusively serve plant-based foods, you’ll want to ensure your GPO partner can meet those needs. Beyond a basic online search, don’t forget to ask around your network. Fellow catering professionals can share their experiences and provide qualified recommendations. 

Interview your candidates 

Much like a job interview, you want to evaluate potential GPOs to determine which one will be the best partner for your company. Reach out to customer service and ask about their process. How do they source responsibly and ensure food safety? What can you expect with delivery timing? What resources do they provide to support members? Many GPOs will even look at your receipts to highlight savings opportunities. 

Scrutinize the agreement 

Once you choose the best GPO for your needs, you’ll need to sign an agreement to get started. Keep in mind that this contract should provide equal protection for you and the organization. You should never feel like you’re waiving your rights as a business owner.  

Review the contract with a fine-toothed comb to confirm you aren’t locked into any unreasonable terms. Keep an eye out for red flags, like required membership durations, mandatory order frequency, or minimum purchase amounts. Joining a GPO should only enhance your business operations, not limit them! 

Finding the right GPO for your catering business can transform your operations and significantly impact your profitability in 2025. But more than simply joining, you must leverage the benefits to see results. During the first several months, connect with customer service regularly to ensure you’re maximizing your savings. With minimal effort, partnering with a GPO can set your business up for sustained success—a must for thriving in a competitive market.