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As inflation worsens, legal chiefs and their in-house teams are stepping up and finding ways to help their companies tamp down a vast array of price hike fires. And a significant part of that work is reviewing contracts with service providers, clients and other business partners.
"You look at some of those agreements and see if there are areas where you can control costs, areas where you can renegotiate," said Jay Pricher, general counsel for Best Western Hotels & Resorts in Phoenix.
For example, many hotels provide free breakfast for their guests. But that's gotten significantly more costly as food prices have ballooned. Now, a legal department could revisit its contracts with food suppliers to determine whether they can change what they offer on the breakfast menu or switch to a new supplier to lower costs.
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