Hotel leaders are facing a tough reality in 2026. Room rates have stopped rising, but costs keep going up. Food and beverage (F & B) expenses, especially staples like coffee, dairy, and proteins are climbing fast. At the same time, guests expect better food, local flavors, and memorable dining experiences.

So how can hotels protect profits while meeting guest expectations?

More hotels are rethinking how they manage, source, and position their F & B programs. Many are turning to F & B-focused management companies and partnering with a Lodging GPO to control costs, streamline purchasing, and make food and beverage a true revenue driver.

This shift was the focus of a recent Hot Topics session, where industry experts shared how hotels are adapting and winning in today’s challenging market.

Why F & B Matters More Than Ever

For years, F & B was often seen as a support function in hotels. Rooms drove revenue. Restaurants were there for convenience.

That mindset no longer works.

Today, F & B is a major part of the guest experience. Guests remember great meals, quality coffee, and welcoming spaces. They also expect dining options that feel local, fresh, and authentic.

At the same time, F & B can be one of the biggest profit opportunities or one of the biggest risks.

Rising food costs, labour shortages, and supply chain issues make it harder to run efficient kitchens. Without strong systems in place, margins disappear quickly.

Read out Cost Outlook for more information

That’s why more hotels are treating F & B as a core business, not an add-on.

What’s Driving F & B Cost Pressure?

Hotel operators are dealing with several challenges at once:

1. Rising Food Prices

Essentials like coffee, eggs, dairy, and meat continue to increase in price. Global supply issues, climate impacts, and transportation costs all play a role.

2. Labour  Challenges

Hiring and keeping skilled kitchen staff is expensive. Wages are higher, and turnover remains a problem.

3. Supplier Complexity

Many hotels work with dozens of vendors. This leads to inconsistent pricing, missed savings, and more time spent managing invoices and orders.

4. Flat Room Revenue

With room rates leveling off, hotels can no longer rely on rooms alone to drive growth. Every department must perform.

Together, these pressures force hotel leaders to ask an important question:

How do we run smarter F & B operations without hurting quality or guest satisfaction?

The Role of a Lodging GPO in F & B Success

One of the biggest takeaways from the Hot Topics session was the value of working with a Lodging GPO.

What Is a Lodging GPO?

A Lodging GPO (Group Purchasing Organization) helps hotels combine their purchasing power. By buying as part of a larger group, hotels can access:

• Savings on food, beverage, and supplies
• National and local supplier options
• Contracted pricing and protections
• Market insights and cost trends

Instead of negotiating alone, hotels gain strength through scale.

How a Lodging GPO Helps F & B Teams

For F & B leaders, a Lodging GPO can:

• Reduce food and beverage costs
• Simplify vendor management
• Improve price consistency across locations
• Free up time for menu innovation and guest experience

This allows chefs and operators to focus on what they do best creating great food while still protecting margins.

Why Hotels Are Turning to F & B Management Companies

Another growing trend is the use of F & B-focused companies.

These companies specialize in running hotel restaurants, bars, cafés, and banquets. They bring deep operational expertise, strong systems, and proven playbooks.

Key Benefits of F & B Management Partners

• Better Cost Controls: Clear processes for food cost, labour , and waste
• Stronger Menus: Data-driven menu design that balances creativity and margin
• Operational Discipline: Standard recipes, training, and performance tracking
• Faster Innovation: Ability to test concepts and respond to guest trends

When paired with a Lodging GPO, these partners can unlock even more value by aligning menus with contracted pricing and smart sourcing strategies.

Turning F & B Into a Profit Center

Industry experts agree: successful hotels don’t just cut costs, they optimize operations.

Here’s how top-performing hotels are repositioning F & B:

1. Smarter Menus

Menus are designed with pricing, availability, and preparation in mind. Fewer items. More flexibility. Better margins.

2. Strategic Sourcing

Hotels use a Lodging GPO to balance national contracts with local suppliers. This supports communities while keeping costs under control.

3. Coffee as a Revenue Driver

Coffee is no longer just a morning service. Specialty programs, upgraded equipment, and quality beans turn coffee into a high-margin offering that guests value.

4. Simplified Operations

Standardized purchasing, fewer vendors, and clear systems reduce errors and waste.

5. Experience-Led Dining

Hotels create spaces where locals and guests want to gather. This drives traffic beyond overnight stays.

How Procurement Supports Guest Experience

Some operators worry that cost control means lower quality. The opposite is often true.

With the right procurement strategy, hotels can:

• Access better-quality products
• Ensure consistent supply
• Support local and sustainable sourcing
• Invest savings back into the guest experience

A Lodging GPO provides data and insights that help hotels make informed decisions, not just cheaper ones.

What Hotel Leaders Should Focus On Now

As we move further into 2026, hotel leaders should ask themselves:

• Do we know our true F & B costs?
• Are we using our purchasing power effectively?
• Is our F & B program designed for profit and guest satisfaction?
• Are we leveraging partners who specialize in F & B success?

The hotels that thrive will be the ones that treat F & B as a strategic asset supported by strong partners, smart procurement, and clear goals.

Final Takeaway

With room rates flattening and F & B costs rising, hotels can’t afford to stand still.

By partnering with F & B GPO like Entegra and leveraging a Lodging GPO, hotel leaders can control costs, simplify operations, and turn food and beverage into a powerful profit driver.

The future of hotel F & B is not just about saving money. It’s about spending smarter, creating memorable experiences, and building programs that serve both guests and the bottom line.

And in today’s market, that approach makes all the difference.

Contact Entegra today to learn more. 

Frequently Asked Questions About Hotel F & B and Lodging GPOs

What is a Lodging GPO?

A Lodging GPO (Group Purchasing Organization) helps hotels buy food, beverage, and supplies with higher savings by combining purchasing power with other hotels. This gives hotels access to better savings, supplier contracts, and market insights without losing control of their operations.

How does a Lodging GPO help hotel F & B teams save money?

A Lodging GPO helps F & B teams save money by negotiating better savings, reducing vendor complexity, and providing cost transparency. Hotels can lower food and beverage costs while maintaining quality and consistency across their dining programs.

Why are hotels focusing more on F & B in 2026?

Hotels are focusing more on F & B because room rates have plateaued while food and labour costs continue to rise. Strong F & B programs help hotels increase total revenue, attract local guests, and improve overall profitability.

Can F & B really be a profit driver for hotels?

Yes. When managed correctly, F & B can be a major profit driver. Smart menu design, efficient procurement, and strong cost controls allow hotels to improve margins while creating dining experiences guests value.

What is an F & B management company?

An F & B management company specializes in running hotel restaurants, bars, cafés, and banquet operations. These companies bring expertise in staffing, menu development, cost control, and performance tracking to improve F & B results.

How do Lodging GPOs support local food and beverage suppliers?

Many Lodging GPOs offer access to both national contracts and local suppliers. This allows hotels to control costs while supporting local producers and creating menus that reflect their community.

How does procurement impact the guest experience?

Better procurement leads to more consistent quality, reliable supply, and better products. Savings gained through a Lodging GPO can be reinvested into menu innovation, staff training, and improved dining experiences for guests.

Why is coffee such a big focus for hotel F & B programs?

Coffee is a daily touchpoint for guests and a high-volume item. With the right sourcing and equipment, coffee can become a high-margin F & B offering that boosts guest satisfaction and revenue.

When should a hotel consider using a Lodging GPO?

Hotels should consider a Lodging GPO when food and beverage costs are rising, vendor management feels complex, or margins are shrinking. GPOs are especially valuable when hotels want to improve efficiency without sacrificing quality.

What’s the biggest benefit of combining an F & B management company with a Lodging GPO?