Reduce Your Startup Costs
Opening a new restaurant is a daunting task and costly endeavour for many. Whether you’re refurbishing an old location or building from the ground up, the expenses accumulate quickly, and owners look to cut corners where possible. Unfortunately, only so many corners can be cut, and some investments simply shouldn’t be dampened by a cost restriction. When it comes to kitchen equipment, knowing how to make informed purchases that are both cost-effective and long-standing can help retain your working capital while reducing headaches in the future.
New vs Used
For those who are refurbishing old restaurants, many pieces of equipment can be transferred from the old kitchen and into the new with little to no effort. While this poses its own risks with life-expectancy of the unit, cleanliness, and reliability, it can be a good option for some minor pieces of equipment that can also shave money off of your budget.
New equipment, while costly, is truly the best option for restaurant owners. Most equipment comes with warranties and 24/7 support. You know you’re investing in a product that should have no flaws and can be reliable, especially as your employees are having to deal with a hectic ‘grand opening’ environment. Safety is key, and new equipment is as safe as it gets in the industry! You know that you won’t have to make another similar investment in the near future, and you can save yourself the headache of having an old unit break down during what will probably be a peak business time.
If you’re trying to decide on what absolutely should be purchased new, it’s recommended that you always purchase refrigeration units new. A broken refrigerator means spoiled food, and those costs can ruin your business in a heartbeat! Chad Coulter of LouVino wine bar says, ‘I am not willing to risk $5,000 of product when it only costs $2,500 to get a new unit,’ and we couldn’t agree more.
Cutting Down on Costs by Leasing and Financing
While the ideal situation involves a kitchen stocked with new, state-of-the-art equipment, the reality is that many owners will be scratching their heads trying to tally the numbers to a figure that fits their budget. The good part is that leasing equipment is easier than ever! You can choose your terms and pay over time, giving you a larger sum of working capital while paying off your equipment. In the end, you’ll own your equipment and have paid it off in an economical way! J.D. Rothberg, co-owner of the small restaurant chain Wild Eggs, says, ‘When it comes to kitchen equipment, knowing how to make informed purchases that are both cost-effective and long-standing can help retain your working capital while reducing headaches in the future.’
We’d love to help guide you through financing options to help bring your kitchen to life with appropriate equipment! It’s possible on many budgets to stock your units, so analyzing your needs as well as costs will help determine the best route for your equipment.