Setting up any catering business is a long, hard costly but ultimately rewarding experience. It is imperative to have equipment that will be able to cope with the high demands of a busy working kitchen. In order to acquire efficient, quality, durable pieces you will need to lay out an initial cost. Whether your budget seems tiny or money is no object, you should initially consider all the options before deciding and committing yourself and your finances to any one avenue. You will need to take into the account many different factors as getting your equipment choices right first time is the only financially viable option. Commercial equipment can get quite pricey so the concept of simply ‘buy another one’ if your first choice isn’t appropriate is just not an acceptable or financially sound decision.
What options are available?
Buy new. This is the most preferred option but also the most expensive. If your funds are tight, then this may not be a viable choice for every business. With new equipment you are under a warranty, either parts or full parts and labour and are therefore assured that should any faults or problems arise you are covered at either little or no extra cost. As all equipment is new and straight from the manufacturer you have peace of mind that your purchases are not already halfway through their lifespan. Your range of choice is far greater than any other option.
Buy used. Used equipment may be cheaper but has obviously been pre-owned. This means that the warranty may not still be valid and that all parts will have a varying degree of wear and tear. Replacement components can be costly and difficult to find if you have bought an older model. Obviously efficiency is a major factor, and you may lose money with the day to day running of used equipment. Although this may appear to be a cheaper option initially, in the future your costs may soar higher than if you had bought from new to begin with.
Buy damaged or graded. In many instances businesses may order new equipment and it will arrive with minor scratches or dents. These goods are obviously sent back and cannot be resold as new equipment. Where does this equipment go? Manufacturers and suppliers will usually sell these units at a discounted cost and although the major components and the internal workings are all unused, the cosmetic damage devalues the equipment. This option gives those on a tight budget the opportunity to acquire a new piece of kit for a discounted price.
Buy overstocked items. Manufacturers and suppliers will usually stock more recent and updated models. If they haven’t sold the older models they may choose to sell these at a lower price; after all, it’s making no money in storage and most customers will purchase the newer models available. This allows businesses with less free cash to buy a new piece of equipment for a smaller cost. Likewise, if a specific brand either closes its manufacturing plants, is bought out by a larger company or ceases to trade, their stock may be sold off at a lower cost to allow the company to cash in their assets. Although these options are always good to investigate if you have a specific model or specification range in mind you may not be able to find what you are looking for. The options available to you will be limited and therefore not ideal for everyone.
Buy under a lease contract. Commercial leasing is a great option to enable you to purchase new equipment and spread the cost. There are certain criteria that leasing companies will require. If you are eligible the range of equipment available may not be as great as if you are buying outright. You may find that only certain manufacturers and specified models are allowed to be bought and are available for purchase under this scheme. You may also find that you are paying back a large percentage more than the original cost of the equipment. As with all loans, an interest rate will be applied to the initial amount. Before entering any lease to buy contract you should always discuss all payback details; i.e. rate of repayment, overall interest, length of loan, default fines, what is the loan secured against etc. If this information doesn’t correspond with your own financial capacity then back away and find an alternative way to purchase your commercial catering equipment.
Buy other equipment used. If you decide that the only viable option for your business is to buy new equipment, but finances don’t allow your budget to stretch that far, take a step back and review all other budget areas. Is there scope to cut back in other areas? Your budget for crockery, glassware and cutlery could be cut down if you are able to locate cheaper alternatives. Any restaurant linens such as napkins or tablecloths may also be cheaper elsewhere. Even furniture such as dressers, tables and chairs could be purchased second hand. Most used furniture is still in good condition and may only need upholstering. Always search for any items which may be available from a recently closed down restaurant. By trimming back on other areas and adding the savings to your equipment budget you may find that you have enough to buy from new. Used furniture or slightly less extravagant extras are far easier and cheaper to replace or revamp than a broken, inefficient piece of catering equipment.
If your budget is slightly strained then researching all possible alternatives should provide a solution to accommodate anyone’s needs.
