Traditionally, the pantry has been a resource to meet the needs of guests when they are looking for a light snack or quick meal. However, due to COVID-19, the pantry has become a much more integral part of a hotel’s day-to-day operations. More and more hotels will begin opting for grab-and-go items in place of traditional dining options¹.

When properly planned and managed, the pantry can be a great source of revenue for your hotel. Now more than ever, it’s important that you select the right products for your pantry. This will ensure you are not just meeting the needs of your guests, but also earning a profit.

Before selecting the items for your pantry, you need to determine what categories should be included as pantry necessities. Common options are sweet snacks, salty snacks, healthy snacks, quick meals, ice cream, frozen dinners, and travel size amenities.

Additionally, you need to identify what the best sellers in each of those categories are. This could be Reese’s Peanut Butter Cups for sweet snacks or Doritos for salty snacks, for example. You will be able to determine these categories based on market research.

5 Things to Consider When Selecting Products for Your Hotel Pantry

It is vital to offer the popular products that your guests seek when they step into a pantry. Some hotels want to stand out by offering only regional items or only natural or organic products. This can be beneficial, but typically national brands outsell specialty items 4 to 1.

Research has shown that guests, especially families and business travelers, prefer comfort foods from well-known brands while they are traveling. Consumers would rather not spend money on an item they are unfamiliar with, taking a chance that it might not be exactly what they wanted. By offering items that guests are familiar with, sales and guest satisfaction will increase.

The room rate of a guest’s hotel is a good indicator of their travel budget and should be factored in when selecting the offerings in a pantry. For example, a guest who is willing to pay $200/night to stay at a hotel is probably willing to pay $7 for a pint of premium ice cream like Ben & Jerry’s or Haagen Daaz. On the other hand, a guest who chose an economy hotel at a $49/night rate is more likely to be looking for an inexpensive ice cream product in the $3-4 range, like Klondike or Good Humor novelties.

Studies have also shown that generic or low-budget items are NOT usually preferred by guests, no matter what their budget, because they are normally associated with being low quality. If these products are stocked in the pantry, you will find that they will not sell as quickly, despite the low price.

When America was asked “Would you like that Super-Sized?” the answer was a resounding “YES!” Guests typically opt for the 20oz soda, the king-sized chocolate bar, and the large “grab bag” chips. These products sell better and faster, which means an opportunity for larger profits. Market retail analysis of over 400 Marriott Markets shows that king-sized beverages, candy bars, and potato chips outsell their normal size counterpart across all categories where a king-sized alternative is offered.

To put it into perspective, the single serve 1 oz bag of Lays can be purchased from your food service company for about $.35 each (depending on your negotiated price) and can be sold in the pantry for $1.00. That’s about a 200% markup and $.65 profit per bag. However, a king size or grab bag size (2.25 oz) Lays sells wholesale for about $.65 and can retail in a hotel pantry for $2.00 or more. That’s about a 225% markup and $1.35 profit per bag. Is it starting to add up?

 

Guests want options – not just in the number of products being offered, but in the categories available as well. A guest should be able to walk into the pantry and find a satisfying solution to what they are craving. Meaning if a guest needs to satisfy a sweet tooth, they should have several choices to choose from, including chocolate, cookies, and candy. If they come in and are trying to stick to their diet, they should be able to select from a variety of healthy products like energy bars, trail mix, or Lean Cuisine meals.

This is especially important during a time like COVID-19. As dine-in options continue to be limited, having a variety of food offerings for different mealtimes in your pantry is key. Individually wrapped meal items like muffins or sandwiches are perfect to grab-and-go so guests can dine in the comfort of their rooms.

Travel size assortments and single serve over-the-counter medicines are very popular sellers but are commonly overlooked by hotels. These products allow you to meet the needs of your guests while earning a healthy profit, since most wholesale for under a dollar and can be sold for $2.00 or more. When properly supplied and merchandised, these assortments fall in the top five for all pantry offerings.

No matter what region your hotel is in or what main guest profile you are serving, the convenience of a well-supplied pantry market can improve guest loyalty and increase sales at your hotel. Selecting the right products to offer is the first step towards your hotel retail success.

In addition to helping you find savings on the right products for your pantry, Source1 Purchasing can also help you access competitive pricing on a wide variety of products and services for your hotel.

 

References

• Reference 1

Hotel managers know how much small details can play a large roll in a customer’s experience. That’s why linens play such an important role in the hotel industry. Bedding and towels can have a major impact on a guest’s impression of your hotel, so it’s worth investing in linens that will make a good impression. Here are three things to consider when choosing the best hotel bedding for your establishment.

QUALITY

Hoteliers should never skimp on quality when it comes to bed linens and towels. High-quality linens will not only delight guests, they also have a longer lifespan which can save your hotel money over time. One common myth about purchasing towels and sheets is that you should always buy items with the highest thread count possible. While it’s generally true that a higher thread count is more desirable, fabric quality will ultimately determine how soft your towels and sheets are. Another quality indicator is the length of a sheet’s fibers. Longer fibers add durability to fabric and help reduce snags and pilling. Before purchasing any linens, ask your supplier to provide as much information about their product as possible and always request samples before making your final purchase.

MATERIAL

When it comes to linens, opting for a natural fabric like cotton is your best choice. Cotton is durable, easy to care for, and sustainable. Cotton is a breathable fabric which helps keep guests cool throughout the night, allowing for a better sleeping experience. If possible, choose organic cotton linens that are free of pesticides and other chemicals. The chemicals found in conventional cotton products may serve as irritants to guests with allergies and skin sensitives.

CARE

After investing in quality hotel bedding, it’s important to maintain them properly. Your hotel’s cleaning staff should be instructed to treat any stains prior to washing linens. Further, it’s important that sheets and towels are always washed per the manufacturer’s care instructions. For cleaning products, choose a supplier that specializes in cleaning solutions that will help extend the life of your linens. Caring for your linens properly will ensure that they remain in like-new condition for many uses.

Save money on linens, cleaning products, and other hospitality supplies when you take advantage of the collective buying power that comes with joining Source1 Purchasing. We help you stabilize your supply chain by streamlining your purchasing processes and lowering your overall costs. Contact us today.

 

Technology has had a huge impact on the way hoteliers and others in the hospitality industry approach supply chain management. Thanks to new innovations in customer data and inventory tracking, purchasing specialists are able to create better systems for procuring their hospitality supplies. A more streamlined supply chain translates into lower operating costs that requires less time to manage. Further, having an efficient and more stable supply chain directly effects customer experiences in a positive way, leading to an increase in overall customer satisfaction and, ultimately, an increase in repeat business.

RFID

Radio Frequency Identification (RFID) is a system of tracking inventory movement throughout its lifecycle. RFID labels can be placed on virtually anything and do not require manual hand-scanning for inventory to be tracked. This allows procurement officers to accurately track everything from customer consumables to maintenance supplies in real time. Utilizing RFID for asset tracking gives businesses greater control over their inventory, helps cut down on waste, and allows for more efficient purchasing. Because the flow of inventory is tracked digitally, there is less need for “hands-on” inventory management, freeing up employees to focus on other tasks.

Internet of Things

The Internet of Things (IoT) refers to the multitude of devices we use every day that send and receive data via an internet connection. The IoT is set to completely revolutionize the way the hospitality industry manages their operations and supply chain. Hotels already use these smart devices in a number of ways. Internet-enabled thermostats, for example, can be signaled to turn on air conditioners at the time a guest checks in. Guests arrive at an air-conditioned room, but HVAC systems aren’t running unnecessarily when the room is unoccupied. In the near future, it may even be possible for these types of devices to intuitively trigger purchase orders or notify management when equipment requires maintenance.

Big Data

The biggest asset technology has to offer businesses is data. Big Data gives hotels valuable insights into their customers’ behavior, allowing them to establish the lifetime value of a guest and offer them more individualized service. Many businesses already use Big Data for customer relationship management, but there are opportunities use data to improve operations as well. The wealth of information gathered from asset tracking systems and smart devices allows procurement managers to vastly improve their purchasing performance by way of streamlined supplier relationship management and inventory maintenance. Purchasing service organizations, like Source1 Purchasing, also use item tracking systems to help simplify client and supplier interactions, manage fixed pricing structures, and track manufacturer rebates.

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Owners and operators are hampered by being “small fish” in a big purchasing pond, lacking the collective buying clout required to be able to negotiate the best prices. They’re discovering that “do-it-yourself” procurement is not as simple as they had hoped and are now realizing that they don’t have to do it alone.

Technology impacts every facet of the hotel industry.  Large operators embraced solutions early on.  Today, hotel operations of all sizes can benefit by considering theses three hallmarks:

1.            Social Media to drive reservations and guest satisfactions

2.            Mobile devices to address guest requests on the spot

3.            Integration on the cloud to ensure cross departmental collaboration

While at first these changes seemed a bit daunting, most successful operations have integrated the ideas.  If your operation is new to the three hallmarks, break them into manageable parts.  Consider a college intern for your social media presence.  Invite your department heads to assess the best way to use mobile devises in their departments.  And consider a purchasing expert like Source1 Purchasing to offer procurement solutions that translate to savings of time, resources and money.

Now that hotel operators are embracing technology in the hospitality industry, they are experiencing higher guest satisfaction and profitability. Today’s guests want a highly personalized hotel experience that includes using their personal technology devices during their stay. Chances are they booked a room directly from their smartphone, so it makes sense to use technology tools in rooms and throughout the hotel because guests are familiar with these and use them every day.

Technology is also revolutionizing how hotel operators manage their business. Sales departments have been restructured to strongly focus on social media and e-commerce. Other departments are using updated software to better communicate and quickly meet guest needs.

An article on the Hotel Interactive website addresses technology issues facing the hotel industry today and shares opinions from hotel leaders attending this year’s BITAC Tech and Operations conference.

When attendees were asked if they are leveraging technology to lower operational costs at their hotel, 11.3 percent said “no,” 18.8 percent said “yes” and a whopping 56.3 percent said “yes” but admitted they “could do better.” This suggests that although hotels are embracing technology in the hospitality industry to improve guest satisfaction, they are still looking for efficient ways to manage their hotel business.

One way hotel operators can improve accountability and harness maverick spending is by updating their procurement process. This can become a serious issue for your budget if overlooked. You need to know what you’re receiving, what vendor you’re buying it from and what you’re paying.

Hotel operators are also looking to online ordering for their food-and-beverage programs. Distributors wanting to make the procurement process as simple as possible are embracing this model and are providing the service at no charge to the hotel operator. Operators have at their fingertips new tools for online ordering, monitoring prices by category, identifying quality products and reducing wasteful spending.

Larger multi-unit operators are also tying their purchasing platform into their back office administrative software, which helps create an even more efficient procurement process.

Regain control over your purchasing. Identify products that meet your brand standards and work with a supplier that can consistently deliver high-quality products at a set price. This way you’re able to monitor prices by category. Your hotel’s procurement process can create a cost savings when you analyze your spending and identify ways to leverage it.

With the recession in the rear-view mirror, now is the time to explore procurement solutions that can help rejuvenate and add value to your hotel.

The transaction volume for 2013 is forecast to reach $18.5 billion, a 5.7 percent increase over 2012 levels, according to an article on the 4Hoteliers website. Analysts have a bullish outlook as the economy continues to improve.

For hotel owners, that means there’s no better time to consider ways to enhance your property and benefit from the projected growth in travel spending.

When considering renovations, look at what provides the highest ROI, adds value and gives you an edge over your competition.

1. Wi Fi  |  A great place to start is by adding Wi-Fi to your property. Hotels with Wi-Fi use it as a selling point and experience high customer satisfaction ratings. Many guests have come to expect Wi-Fi when they stay in a hotel.
2. Business Center   |  Business centers are also great additions for hotels that cater to corporate travelers. They can add value by providing business travelers with a place to print business documents or boarding passes.
3. Restaurant Refresh  |  Renovating restaurant facilities is another key area to focus on. Technology is an integral part of travelers’ lives these days, and they expect to be able to connect wherever they are. Make the dining areas tech-friendly by putting outlets near tables so guests can multitask — charge their phone, check their email, etc. — while they enjoy their meals.
4. Audit Resources  |  Another easy way to add value and cut costs is to comparison shop your phone and Internet plans. Compare service providers and see who’s offering the best plan in your area. Just like consumers, this can also save operators money.

Source1 Purchasing has access to extensive procurement solutions for all of your food and beverage, operating supplies, maintenance and renovation needs. From flooring and fixtures to equipment and supplies, Source1 can help you bring guests the latest comforts and conveniences, and rejuvenate your hotel so that it thrives in the improving economy.

Deciding whether or not to have your staff wear uniforms could be something that you’ve gone back and forth on for a while. Whether or not your staff is currently wearing uniforms, we have some reasons to explain why it’s a good practice to implement and maintain in the hospitality industry.

If your business is looking for the right procurement services company to get the products you need, then be sure to contact Source1 Purchasing to get started. From a free supply-chain analysis to creating a program for your specific needs, we offer buying that you can believe in. Get started today!

Promote a Positive Image

If there is a specific image, color, or logo that represents your brand, then providing uniforms that capture this will help to promote a positive image. The more that your customers see your brand, the more likely they are to develop positive feelings and begin to feel a sense of loyalty. In fact, they may not be aware of how often they are seeing your brand, as many of the details will be recorded by the subconscious. This will benefit you in the long-term when they recall how much they like your business, even if they can’t recall specific reasons why. Simple features and a clean look aid in promoting the positive image that your brand needs.

Help Customers Identify Staff

Whether a customer has walked into your lobby, bar, or restaurant, they are likely going to search for a staff member who can assist them. The easier it is for them to identify your staff, the more it will help provide a better customer experience. Customer satisfaction is key to obtaining their recurring patronage as well as positive word-of-mouth. If your employees don’t wear uniforms, then your customers may be at a loss to identify who can help them, which can lead to feelings of frustration and irritation. Providing a great and consistent customer experience is a major goal of all hotel operators as it will drive repeat visitors and quality reviews.

Improve Customer Service

Help your customers avoid frustration by improving customer service with consistent branding in your uniforms. The more recognizable your staff is, the easier your customers will be able to identify who can help them, which will potentially reduce the time it takes for them to receive service. An additional benefit for you is that when your staff wear uniforms, they are likely to be more conscious of their actions and attitudes whether they are actively serving customers or not. Should you choose to add a name tag to the uniform, you could also create a more personalized experience for your customers.

Health and Safety

There are a number of uniform items that can provide health and safety benefits for your employees. Whether it’s a kitchen uniform that protects employees from the equipment, heat, and chemicals, or non-slip safety shoes, aprons, and gloves, there are a number of items that you can provide your employees when uniforms are a priority at your business. Boost your employees’ morale and loyalty to your company by providing the uniform items they need to be safe and provide ideal customer service.

Boost Confidence in Your Brand

Depending on the atmosphere and experience that you wish to create for your customers, a well-chosen uniform can help to create brand consistency. For example, a traditional chef coat and black pants can convey a professional yet laid-back atmosphere for customers. Black pants paired with a white chef coat or other solid color help to create a more fashionable atmosphere. Boost confidence in your brand by choosing uniforms that elicit the feelings you want your customers to experience and make sure that your uniforms are consistent with your brand. 

If you are in the hospitality industry, then you know that there are a wide variety of items that you need to keep things running smoothly on a day-to-day basis. At Source1 Purchasing, we want to be your go-to procurement service company. From providing you with a free supply-chain analysis to leveraging our purchasing power for your benefit, we are your Top Rated® Local Procurement Solution. Get started today!

You may or may not be aware of exactly where your food comes from, but you need to know if you are actually getting the best results from your supply chain.

Managing your supply chain can be somewhat difficult because food and supplies are being purchased and packaged both domestically and abroad. In the event food suppliers see the impact of bad weather, food contamination or even government fines, they revisit their pricing strategy and make adjustments, upward, that are passed along to the hotel and restaurant operators.

According to an article on the Food Safety Magazine website, the FDA continues to place strict regulations on companies exporting and importing food to stem instances of food contamination. There have also been cases reported of food fraud and misrepresentation of ingredients on food packaging. In fact, new U.S. agencies have been created to meet the need for tougher inspections.

You cannot possibly know about all the different variables that could affect your order, including recalls. But these factors signal a need for you to be more involved in your hotel’s procurement process.

It is important to have a good relationship with your suppliers so you can be more informed about changes that might influence your products, and ultimately your service. You obviously can’t control some of the factors in your supply chain, but you are responsible for what is served in your facility. As such, it’s best to question whether you are receiving the best products at the best prices with adherence to current safety rules and guidelines. Given the size of that task, some companies engage a purchasing company like Source1 Purchasing who can offers immediate product updates.

To ensure the best quality and pricing, it’s also important for operators to periodically evaluate their product line. Start by focusing on the top items in your hotel supply chain: Do the products meet the needs, standards and expectations of you and your guest?

With Source1 Purchasing, you can identify the products that are contracted. That translates to additional cost savings realized when these items are added to the order. Operators should also review these items to see if it’s time to upgrade them for quality or change the serving size to serve customer trends. Are you buying the right products to satisfy guests and are you leveraging your spending to get the best price? Be aware of your purchasing patterns using your data to ensure you’re getting the best results.

Purchasing data can also help target areas of possible concern at your property. For example, at some hotels and restaurants, the purchasing staff may choose products based on their individual preferences instead of the brand standards. Relationships can sometimes influence a decision.  To successfully manage procurements for a hotel or restaurant, buyers must be knowledgeable of the food industry as a whole and be proactive in obtaining the best products at the best price.

As an operator, all it takes is a focused approach and visibility into your purchasing data to be confident that you’re making the best choices. You know where you are in the industry and you know the factors that impact your buying decisions. By reviewing your purchasing records and making a few key changes, you can experience wins in your operations and in your hotel supply chain.

Every hotel requires products and services.

Small operations purchase a smaller volume and have historically paid a higher price.  Today, operators have the choice to join a group to access sourcing and procurement solutions that are tailored to meet their hotel’s purchasing needs.

When hotels opt to purchase on their own, they may invest a great deal of time to realize short term benefits.   Consider the alternative of joining with many other operators via a purchasing company and access better prices immediately and longer term, additional rebates which can annually be a significant amount.

There is great value in cultivating loyal customers. An article on Hotels.com recently shared results from a Deloitte research project regarding loyal guests. The report, conducted recently, found that only 8 %of travelers are loyal to a single hotel brand. This elusive group is savvy with online research.  You want to be sure that when they arrive on your front desk, every aspect of their hotel experience delights them.

Gaining loyal customers is critical for your hotel because they help generate consistent revenue flow. There is less overhead involved in repeat guest. Additionally, they serve as your goodwill ambassadors to their friends and family.  The most authentic of marketing at no cost.

Food and beverage (F&B) can be an important feature in some hotels. By placing an emphasis on the right kind of theme and food quality, operations can capture the attention of local residents as well as their hotel guests. A purchasing company like Source1 Purchasing can help you access high quality, national brands, and sourcing and procurement solutions.

Keith Spinden, Hyatt Regency Chicago’s senior director of F&B, says in an article on the Hotel Management website that both owners and operators need to have a long-term commitment to serving quality F&B. It has to be more than a current trend for your hotel.

“We really need to maintain our focus on top-line sales and get a steady stream of customers walking through the door and coming back,” Spinden says. “We must maintain a certain level of revenue, but if we play around with quality, our top line will decline as well and that’s a downward spiral we try to avoid.”

A sourcing and procurement strategy helps hoteliers work smarter in five ways:

1) Save time.  Reaching out to suppliers is often time-consuming. When you use the services of a procurement organization, the experts conduct the research to ensure the best solution.

2) Save money in two ways. The procurement solution provides contracted, pre-negotiated savings on specific items. Pre-negotiated prices typically cover a longer period of time so operations can be protected from inflation and other short-term fluctuations in the market. Plus, you gain access to rebate on a quarterly basis.

3) Become more powerful. Sourcing and procurement solutions merge your volume purchasing with the purchasing of other customers, which increases your savings: Larger hotels that buy huge quantities of food and supplies qualify for volume discounts. Adopting sourcing and procurement solutions enables smaller hotel operations to enjoy the same benefits and the same high quality, name brand products.

4) Protect the promise.  It is important for you to deliver on your promise to every guest. If you are able to purchase a higher-quality product with a higher volume of discounts, then you can use the savings to improve other facets of your operation.  Aside from F&B, you can also purchase linens, in-room amenities, appliances, TVs and even MRO, FF&S and OS&E. Your guests will be delighted with the consistency and quality of their experience.

5) Get options.  You can spend your precious time securing two or three quotes or you can work with the buyers at a procurement organization that can take your need, research options and present you with details.  You can focus on making the decision that meets your needs. While taking advantage of discounts and lower prices.

Source1 works with virtually every hotel company and understand the brand standards of each we work with your team to deliver the best products to your guest at the very best price.