08 Aug 2025
How IHG Hotels in the UK & Ireland are Saving on F&B Costs - IHG Procurement

voco Oxford Thames
In the hospitality sector, food and beverage (F&B) operations often represent a significant portion of a hotel’s cost base. Managing these costs effectively while maintaining quality and consistency is an ongoing challenge for hotel owners and operators. The IHG Procurement Program UK & Ireland (UK&I) aims to help address these challenges by offering structured access to a network of suppliers, negotiated commercial terms, and operational support.
Addressing Procurement Complexities
Procuring F&B items involves more than simply purchasing ingredients. It requires building and maintaining relationships with reliable suppliers, securing cost effective pricing, and helping you ensure compliance with brand standards. This process can be time-consuming and resource-intensive, particularly for independent or small-scale hotel operators.
Common challenges include:
- Price volatility and inconsistent supplier terms.
- Limited access to specialized or dietary-specific products.
- Supply chain disruptions that can affect service delivery.
- Food waste resulting from inefficient ordering or storage practices.
- Menu profitability impacted by fluctuating input costs.
These issues can potentially erode margins and compromise guest satisfaction if not managed proactively.
Acheive up to 15%* Savings Through Smarter Procurement
The IHG Procurement Program UK&I is designed to support franchise hotels in navigating these complexities. Participating properties have reported average savings of up to 15%* on F&B products, reflecting the program’s ability to deliver tangible cost efficiencies through consolidated purchasing and supplier engagement.
The program offers access to over 100 suppliers across categories including food and beverage, as well as non-food consumables, and FF&E (Fixtures, Fittings & Equipment). It also aims to support dietary and operational flexibility by providing access to products that accommodate a wide range of customer preferences, including plant-based, gluten-free, lactose-free, nut-free, organic, free-range, and more.
Supporting Quality and Consistency
Through the program, hotels can source brand-approved products from recognized national and international suppliers. This ensures consistency in quality and presentation across properties, while also supporting compliance with IHG brand standards.
In addition, the program is interoperable with leading procure-to-pay (P2P) platforms. This integration enables participating hotels to streamline procurement workflows, access supplier pricing files, and benefit from preferential rates, subject to applicable terms and conditions.
No Participation Fees and Scalable Support
The program is available to franchise hotels without participation fees, making it accessible to a broad range of operators. A dedicated team of procurement professionals is available to support onboarding, identify cost-saving opportunities, and facilitate supplier relationships.
This structure allows hotel owners to focus on delivering exceptional guest experiences while benefiting from the scale and expertise of a centralized procurement framework.
For more information or to explore participation, hotel owners are encouraged to contact the IHG procurement team at procurementprogramUKI@ihg.com
*Savings may vary based on a particular hotel’s purchasing requirements.