What is OS&E? A guide to operating supplies and equipment in hospitality.
Always underestimated, many investors and hoteliers fail to understand the importance of OS&E. Let's discover what is hidden behind this obscure acronym!
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What is OS&E?
OS&E stands for Operating Supplies and Equipment. It includes all the items a hotel or hospitality establishment needs on a daily basis to operate smoothly and provide comfort to its guests. Unlike FF&E (Furniture, Fixtures & Equipment), which encompasses architect-specified furnishings and larger design elements, OS&E covers the often smaller, yet more numerous and essential items chosen by the hotel operator to create a complete and seamless guest experience. Without OS&E, you might dine at the table—but with your hands.
What is the difference between OS&E and FF&E?
While both FF&E and OS&E are crucial components in a hotel or restaurant, they serve different purposes:
FF&E (Furniture, Fixtures & Equipment) includes larger, fixed or semi-permanent elements like beds, desks, chairs, lighting, etc. These are considered long-term assets and are typically included in the CAPEX (Capital Expenditures) budget, benefiting from extended accounting amortization.
OS&E, on the other hand, includes smaller day-to-day operational items such as kitchen utensils, uniforms, cleaning equipment, office supplies, or glassware. These fall under the OPEX (Operational Expenditures) budget and are usually selected by the hotel operator based on the specific needs and usage of the property.
Understanding the distinction between FF&E and OS&E is key for budgeting and planning a hotel project effectively, ensuring all aspects are properly allocated and managed.
Key OS&E Categories
OS&E items can be broken down into several categories based on hotel or venue needs. Common examples include:
Guestroom Items: pillows, duvets, mattresses, waste bins, kettles, coffee machines, welcome trays, in-room dishware, hangers, hairdryers, etc.
Food & Beverage Equipment: cutlery, plates, glassware, bar utensils, buffet risers, dishwashing racks, and service trays.
Housekeeping Supplies: cleaning cloths, vacuum cleaners, mops, brooms, floor machines, baby equipment, and linen carts.
Kitchenware: pots, pans, knives, kitchen tools, and small appliances such as blenders, portable vacuum sealers, or microwaves.
Back-of-House Equipment: storage shelving, staff room furniture, canteen furniture, and office supplies (staplers, laminators, whiteboards, etc.).
Maintenance Equipment: tools, extension cords, drills, plumbing snakes, and safety signage equipment.
How important is OS&E for Hotel projects?
OS&E is essential to ensuring that a hospitality venue operates efficiently 24/7. Proper planning and budgeting of OS&E allows a hotel to deliver a top-quality guest experience while enabling the operations team to perform from day one. Even the best-designed hotel cannot welcome guests without OS&E in place.
For instance, a fully furnished hotel room without a mattress or bathroom amenities is incomplete and unusable.
How to plan and budget OS&E
Whether you’re opening a new property or renovating an existing one, it’s essential to allocate a dedicated budget for OS&E. Here’s how to approach it:
1. Ask Questions and Understand the Needs
Discovery is crucial to build a qualitative budget. Take time to study the floor plans and the FF&E items already selected, to find appropriate OS&E products (e.g., if dining tables are 80 cm in diameter, avoid sourcing 100 cm-wide sharing boards).
2. Create a Detailed Inventory
List all items needed across each department—from guestrooms to kitchens and back-of-house—divided by category to ensure nothing is overlooked.
3. Work with the Right Partners
Collaborate with trusted suppliers who specialize in hospitality OS&E. They can provide insights on what items are needed based on hotel size and market positioning.
4. Closely Monitor Costs
OS&E can represent a significant portion of the overall budget. Avoid budget overruns and delays by choosing durable, available products—steer clear of fragile items, discontinued products, or overseas-only suppliers.
5. Plan for Replacements
Many OS&E items, such as linens and kitchen tools, wear out over time. Include replacement costs in your long-term planning and annual budgets. Conducting a yearly inventory helps track breakages, losses, or theft.
Why OS&E Matters for Hotel Opening Dates ?
All operating equipment must be delivered and ready ahead of the hotel’s opening. Staff must be trained to use more complex equipment beforehand. Delays in OS&E supply or setup can push back the opening date and negatively affect bookings and revenue. Working with experienced OS&E professionals ensures on-time delivery and smooth launch.
Surprisingly, many projects tend to prioritize the big picture (construction) before handling operational details—but managing OS&E late in the game is risky. Some products require customization and long lead times.
Moreover, delivering essential items like the maintenance team’s toolbox the day before opening—without coordination with the HR department—is as good as hiring staff to do nothing.
Final thoughts…
Understanding the role of OS&E in a hospitality project and how to properly manage its sourcing is essential to create efficient, high-performing spaces where staff can thrive. With projects becoming increasingly complex, we can’t stress enough the importance of careful planning, budgeting, and supplier coordination—especially in parallel with FF&E acquisition.
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