How a Multi-Brand Hotel Owner-Operator Turned F&B Losses Into Profit

FOOD & BEVERAGE

A six-hotel owner-operator was losing money on food and beverage, with food costs reaching 40–45% at some properties. After connecting purchasing, inventory, and accounts payable in Reeco, food costs fell to roughly 20–25% and the group posted its first profitable F&B quarter.

Why it matters: F&B costs were rising faster than the team could see them. Inventory lived in Excel, ordering happened across separate supplier portals, and invoices arrived in different formats, so leadership only found problems in month-end financials. One connected workflow gave them visibility early enough to act.

Reeco is a procure-to-pay platform for hotels that brings purchasing, receiving, inventory, and accounts payable into one system. The group, which operates six primarily full-service hotels across four states and three global brands, first used Reeco to control food costs, then expanded into AP automation.

Top 3 Core Objectives: The group needed to get food costs under control and give corporate leadership a reliable view of F&B spend across six hotels, without forcing properties to change suppliers or operating models.

Control food costs: Food cost percentages had reached 40–45% at some properties. The group needed accurate inventory and purchasing data to stop the margin loss.
Portfolio-wide visibility: Corporate leadership wanted to see purchasing, inventory, and food costs across every hotel before issues showed up in month-end financials.
Replace manual processes: Move off Excel inventory, scattered supplier portals, and inconsistent invoices into one connected workflow for purchasing, receiving, inventory, and AP.

Innovators Mentioned

Shreem Capital

Reeco

Jiger Patel

Co-Founder & COO

Shreem Capital

"Our F&B went from losing money to profitable, and Reeco was a big part of that turnaround. At some properties, food costs had been 40–45%. Now they are around 20–25%. That is very reassuring. It stopped the bleeding."

Jiger Patel

Co-Founder & COO

👍 Co-Founder & COO Jiger Patel said that Reeco helped turn the group's F&B operations from a loss to a profit.:

"Our F&B went from losing money to profitable, and Reeco was a big part of that turnaround. At some properties, food costs had been 40–45%. Now they are around 20–25%. That is very reassuring. It stopped the bleeding."

⚖️ The selection process: During their research process, Jiger Patel evaluated Reeco's product differentiators, customer support, and holistic value as a strategic partner and ultimately decided that Reeco was the best fit solution:

Co-Founder & COO Jiger Patel said, about their decision: "The implementation was smooth, and the Reeco team worked closely with us to make every property successful. What stood out was the partnership. They listened, adapted quickly, and helped us solve real operational challenges."

📈 The results: With purchasing, inventory, and invoicing in one system, the group cut food costs by about 20 points at affected properties and turned F&B profitable for the first time.

First profitable F&B quarter: the group moved its food and beverage operations from losing money to profitability.
Food cost percentage cut by roughly 20 points, from 40–45% to about 20–25% at affected properties.
90%+ adoption across core workflows: 98% inventory, 94% purchasing, and 92% accounts payable at steady state.