Summer is coming fast, bringing warm days and new plans—but if your budget’s looking a little unpredictable, we’ve got ways to steady the forecast. The U.S. is likely to see a drop of up to 9.4% in international travel1 during what has historically been a busy travel season.
Eileen Herzog, Vice President of Account Management, and Christine Petersen, Senior Director, Field Support & Customer Relations, offer guidance on navigating a potentially slow summer season.
1. Be proactive and have a plan
Collaborate closely with your Avendra International representatives to ensure you are sourcing each product from the most suitable vendor. For example, many of our customers have reported savings exceeding double digits on elevator programs through their Avendra International contracts. The savings built into our supplier contracts can help control costs and provide predictability. Additionally, the Avendra Property Level Agreements include cost increase caps to protect you from excessive year-over-year price hikes.
For a streamlined and often more cost-effective purchasing process, consider consolidating orders and scheduling a dedicated team to handle and process invoices efficiently. In some cases, this will help save on freight costs. This approach optimizes operations while maximizing efficiency.
In an unpredictable market, it's crucial to think creatively and be willing to adapt. This may involve adjusting to budget-friendly menus or implementing upcharges for higher-priced commodity items, such as guacamole.
2. Be intentional with your purchases
Review your specifications across all properties and understand what the Avendra program offers. For instance, are you using the same bacon specifications in restaurants and banquets? Consider increasing the slice count for banquets. Is extra virgin olive oil (EVOO) used in all outlets? Can you substitute with an 80/20 or 50/50 olive oil blend? We’re here to assist you in finding the quality products that you and your guests expect, along with built-in price protections.
3. Develop an individualized approach for select service properties
Properties in this category tend to perform well during challenging times, when they implement a plan tailored to their specific needs. Maximizing savings opportunities through strategies such as careful purchasing of items contracted with Avendra can have a quick and significant impact for select service clients.
For example, the coffee market continues to operate at a historic high, largely unaffected by tariff-related pressures. To help mitigate market volatility, consider adjusting volume—such as brewing smaller batches (e.g., half-gallon instead of 1.5-gallon brews)—to reduce waste. Remain aligned with Avendra-approved suppliers based on your tier grade. Any brand standard-related changes will be communicated directly by our sourcing team.
To support these efforts, teams should regularly review their Master Food Distributor (MFD) Impact Report available on myAvendra. It provides a comprehensive analysis of your purchasing activity, helping you maximize cost savings by identifying opportunities to shift to Avendra-contracted items. We encourage you to collaborate with your MFD Representative to assess potential savings, confirm product availability, and request samples of recommended contracted alternatives where appropriate.
4. Take full advantage of the tech solutions and AI-powered insights available to you
Avendra has tools designed to help streamline your purchasing process. You will not only save time with an automated process, but you’ll also gain access to a wealth of information through detailed spend reports. This enables you to make data-driven decisions that strike a balance between profitability and guest satisfaction.
MyAvendra portal helps you uncover savings in areas you may not have previously considered, while providing enhanced supplier access to optimize your procurement strategy. Building on this, our proprietary AI platform, Mosaic Supply Chain AI, takes it a step further—transforming spend data into powerful insights. With self-service access to critical information, Mosaic enhances forecasting precision and delivers AI-driven recommendations that optimize purchasing strategies and supplier decisions, driving smarter, more efficient operations.
Note: Mosaic is currently available to clients and will be rolled out to customers at the unit level, later this summer.
5. Equip your property managers and procurement staff with information and training they need to leverage cost-saving tools
Ensure your team fully understands how Avendra International can help them make strategic, informed decisions, while maximizing contracted savings for greater efficiency and control. Encourage your team to request and review spend reports with their Avendra representatives to gain deeper insights that guide effective decision-making. If there are new members of your team, we are happy to provide training on how to best leverage Avendra’s services and resources. We recognize the dynamic nature of the industry, and we are here to help.
Our experienced team has weathered tough times, including economic downturns and a global pandemic. We know how to help you manage your supply chain and make strategic plans to build a strong bottom line.
