Management & Operation

Should You Buy New or Used Restaurant Equipment?

Last updated on May 23, 2022
Michale LeRoy

Restaurant equipment is a big expense, so it’s important to make sure you invest in the right pieces. But is it better to buy brand new equipment? Or should you try to save money with used restaurant equipment? We’ll cover the pros and cons of both options, plus we'll explore a third option called scratch and dent equipment. Keep reading to learn about the different types of restaurant equipment and which type is right for you.

New Restaurant Equipment

woman taking food out of avantco refrigerator

Who doesn't want a kitchen outfitted with shiny, new restaurant equipment? New kitchen equipment has the latest features and requires less maintenance, but it also has the highest price tag. But if you shop smart, there are ways to offset the cost. Invest in pieces that do double duty, like combi ovens, instead of purchasing multiple units. Make sure to choose equipment with an Energy Star rating, and the cost savings on your utilities over time can help make up for the higher up-front cost of the equipment.

Do some comparison shopping and you’ll see that some equipment brands are more affordable than others but still offer great performance. Consider the volume of your operation and determine which areas can be served with an entry-level model. Do you need a full-size fryer or will a countertop fryer suffice?

You also have the option to lease new equipment, which can free up capital and keep you operational. This is a smart option for new operators who don't know what their daily volume will be yet. You can test out new equipment with the option to purchase it at the end of your lease, if you desire.

Where to Buy New Restaurant Equipment?

Buy your new equipment through reputable restaurant supply companies. Traditional cash and carry stores are preferred by some, but online wholesale companies offer many benefits. Fast shipping, a wider catalog of models, and access to product reviews are just some of the perks of buying restaurant equipment online.

New Equipment Pros

person taking fries out of deep fryer
  • Warranties - New equipment most likely comes with a warranty that can help protect you if something goes wrong. Replacements and repairs may be covered, which saves you money and limits downtime.
  • Energy Rebates - If you haven't looked into energy rebates on new equipment, you are missing out on an opportunity to get back some of your investment.
  • Newest Tech - You could save on labor cost when you invest in equipment with the latest features, like WiFi-enabled options and smart technology.
  • Less Maintenance - New equipment should be free of defects and maintenance issues, which eliminates the hassle of dealing with costly repairs.

New Equipment Cons

  • High Up-Front Costs - The obvious downside to purchasing new equipment is the cost. If you are starting a new restaurant, purchasing all new equipment is a considerable investment.
  • Depreciation - When you are purchasing a new unit, the last thing on your mind is reselling it down the line. But it's good to keep in mind that new equipment depreciates more quickly than used, just like with cars.

Used Restaurant Equipment

four used mixers outside on road

Buying used equipment for your restaurant is a huge money-saver, but it does come with some risks. Second hand restaurant equipment could harbor unseen issues that result in costly repairs. That doesn't mean there aren't opportunities for huge discounts if you do your due diligence.

Where to Buy Used Restaurant Equipment?

One of the best places to buy used restaurant equipment is from a reputable dealer or online store. Many dealers test used equipment to make sure it’s operational before they put it up for sale.

Restaurant auctioneer companies handle the liquidation of entire restaurants that have been forced to shut down, which means you can find great deals on equipment at auction. Many auctioneers that specialize in restaurants employ trained technicians and will inspect and appraise the equipment before it is listed.

You can also find used equipment from private sellers. Between Facebook Marketplace, eBay, and Craigslist, there are numerous sellers and a wide variety of name brand models to choose from. You can find amazing deals, but if you are purchasing used kitchen equipment from a private seller, be cautious. The seller may not be aware of all the issues with the equipment.

If you do find a great deal on a slightly used range from a private seller, just keep some of these tips in mind.

  • Research the seller to see if they actually owned the equipment or if they are a reseller.
  • Request to test out the equipment before purchasing and bring along your chef.
  • Avoid buying second hand electrical equipment and stick with gas, which is easier to repair
  • Be cautious when buying used refrigeration equipment because if something goes wrong, you could lose your food inventory to spoilage.
  • Ovens, ranges, and fryers make the best second hand purchases because they have longevity.

Used Equipment Pros

store with used commercial kitchen equipment

Check out some of the benefits associated with purchasing used restaurant equipment:

  • Save Money - The greatest benefit to buying used restaurant equipment is the cost savings. If you need to replace an old unit, you may not have the capital on hand for a new piece of equipment. If you're completely outfitting a new kitchen, cutting cost where you can is essential.
  • Make Room in Your Budget - When you save money on equipment, you can allocate more of your budget to other parts of your business.
  • Finding a Piece with Character - Maybe you’re looking for a specific look or feel with your equipment. For example, you could have your heart set on an old-style brick pizza oven.

Used Equipment Cons

Make sure to consider the potential risks when buying second hand restaurant equipment:

  • Limited Availability - With used restaurant equipment, you must choose from a limited selection of second hand models.
  • No Warranty or Ownership History - You’ll have no warranty to fall back on if your used equipment needs repaired.
  • More Maintenance and Repairs - Older equipment breaks down more frequently and requires more maintenance.

Scratch and Dent Equipment

scratch and dent

Scratch and dent equipment, also called outlet restaurant equipment, is a third option that offers some of the same benefits as used equipment but without the risks.

What Is Scratch and Dent?

Restaurant equipment labeled as scratch and dent has minor damage, like dents, scratches, or other superficial imperfections that occurred during shipping or transit. Because the unit is no longer picture-perfect, it’s being sold at a discounted price. This is a huge benefit to you because a scratch and dent model is brand new and is often still under warranty.

Where to Buy Outlet Restaurant Equipment?

Many restaurant equipment dealers offer a scratch and dent outlet where you can find deep discounts on brand new equipment. You can even sign up for email updates to be notified as new units are added to the outlet. You never know what will pop up in the scratch and dent category, but if you are patient, you can score new equipment at a great price.

Outlet Equipment Pros

carnival king waffle maker

Buying outlet equipment has many of the same benefits as buying brand new:

  • Brand New Equipment - Scratch and dent equipment has never been used, so it should be free of major defects. You can also expect all the newest technology and bells and whistles of a brand new model.
  • Warranties - Outlet equipment still carries a factory warranty, just like new equipment.
  • Cost-Saving - Just because of some minor scratches or dents, outlet equipment is offered at a deep discount that can save you hundreds of dollars.

Outlet Equipment Cons

There are some of the cons associated with purchasing scratch and dent restaurant equipment instead of new:

  • Limited Selection - If you have a specific model in mind, there's no guarantee it will pop up in the scratch and dent outlet. The selection of units is limited and tends to be random.
  • Cosmetic Damage - There are some instances when cosmetic damage is undesirable, even if the unit operates perfectly. In an open kitchen environment, you want all your equipment to look its best. The same thing goes for any equipment used in front-of-house applications.

New vs Used vs Outlet Restaurant Equipment

New restaurant equipment costs the most upfront, but it may offer savings over time because of increased efficiency, especially if you purchase Energy Star models. Buying used restaurant equipment saves you money initially, but could lead to more repairs and maintenance down the line. Outlet equipment offers the best of both worlds with new models at discounted prices, but the selection is small. To decide which option is right for you, consider some of these questions:

What Is Your Equipment Budget?

You should always start with your budget. How much money do you have to play with? Set yourself a budget and don't forget to think about cost savings over time.

What Type of Equipment Do You Need?

Some types of equipment have more longevity than others, which means less risk when you're buying used. Gas equipment, ranges, and fryers tend to be a safer option than refrigeration or electric equipment.

What Is the Application/Volume?

What are the workhorses in your kitchen? Spend more on the equipment you use the most, and budget less for equipment that is secondary.

How To Save Money on Restaurant Equipment

There are many other ways to save when you're investing in new restaurant equipment. Try some of our tips for finding discounts and freeing up cash flow when you need it:

  • Sign Up for Memberships - Membership programs like WebstaurantPlus offer unlimited free shipping and guaranteed savings on thousands of products.
  • Look for Discounts - Keep an eye out for clearance events and special deals. You never know what might pop up for sale.
  • Monthly Coupons - WebstaurantStore offers a monthly coupon code for certain seasonal items. It's a great way to save on items like outdoor cooking equipment and countertop equipment.
  • Financing - Before making a large equipment purchase, find out if the supplier offers financing options. You may be able to make payments instead of paying for the unit outright. This won't save you money in the long run, but breaking up the cost lessens the sting when you need to purchase a new unit right away.

There's no reason why you can't take advantage of new, used, and outlet equipment for your restaurant. When you buy new, make sure to shop smart and compare different models to get the most bang for your buck. If you're looking for used equipment, keep an eye out for restaurants that have recently closed and owners who need to liquidate their equipment quickly. Don't forget about outlet deals, and sign up for updates so you know when scratch and dent equipment is coming up for sale.

The information provided on this website does not, and is not intended to, constitute legal advice. Please refer to our Content Policy for more details.
External Link

You are about to leave the security of WebstaurantStore.com.

We are not responsible for the privacy policy or any content, links or software, or any consequences from your access to or use of the technologies, websites, information and programs made available on this new site.

Do you want to proceed?

Related Resources

  • Kitchen Equipment Every Restaurant Needs

    Selecting the appropriate restaurant kitchen equipment is crucial for success when opening a new restaurant or renovating your existing business. Depending on your type of restaurant, you might need to invest in fine china or extra deep fryers. We compiled a comprehensive list of essential restaurant equipment to provide a starting point for equipping your kitchen. Though this list serves as a foundation that encompasses the staples nearly every restaurant needs, you can expand it to meet your unique requirements. Download Equipment List PDF Click below to learn more about commercial kitchen equipment: Cooking Equipment Beverage Equipment Refrigeration Equipment Storage Equipment Food Prep Equipment Smallwares Janitorial Equipment 1. Cooking Equipment Cooking equipment is the cornerstone of any commercial kitchen regardless of the type of restaurant. When choosing cooking equipment for your restaurant, consider what items you use the most. While smaller pieces of equipment may be less expensive, they may not meet your capacity needs if you use them regularly, costing your business more in the long run. You may also need additional gas hoses and other components to install your cooking equipment successfully. Oven: As one of the most vital pieces of cooking equipment, use your oven for baking, roasting, braising, and much more. There are various types of ovens to consider, ranging from pizza ovens to combi ovens. Range: A range combines a cooktop and an oven into one appliance, allowing you to bake, sautee, boil, roast, or broil items. You can choose an electric or gas range depending on your needs and kitchen setup. Deep Fryer: Use deep fryers to make customer favorites, like french fries and chicken tenders, or to deep-fry a turkey. Grill: Charbroilers and other grills add a smoky, charred flavor perfect for meat and vegetables. Griddles: With a flat metallic surface, griddles allow chefs to scramble eggs, craft the perfect Philly cheesesteak, or grill a burger. Holding Equipment: Holding cabinets keep your food at a specific temperature, which makes them ideal for holding food until it's ready to serve or proofing breads before baking. Salamander or Broiler: Use a salamander or broiler to finish dishes, toast bread, or melt cheese. They also have sufficient heat output to broil salmon or cook foods. Toaster: If you plan to open for breakfast, a commercial toaster is a crucial addition to your kitchen for serving bread and bagels. Microwave: Microwaves are a convenient way to heat sauces, defrost frozen foods, and reheat products. 2. Beverage Equipment Serving drinks is just as important as filling food orders. If you own a coffee shop, bar, or juice bar, these appliances are the backbone of your operation. However, standard restaurants still need the following beverage equipment items to accommodate their customers. Coffee Brewer: Coffee is a popular beverage, making a basic coffee brewer a necessity even if you're not opening a cafe or bakery. Beverage Dispensers: Some establishments, like fast food and fast casual restaurants, may have self-service beverage dispensers, while others may have them at wait stations. When choosing a dispenser, consider which brand and how many soft drink options you want to serve. Ice Machine: Ice machines are a vital beverage service component at any restaurant, cafe, or bar to keep drinks cold when you serve them. Businesses with a beverage-focused operation may use ice to make smoothies or blended cocktails. 3. Refrigeration Equipment There are many different styles of refrigeration equipment, and your preferred option will depend on your type of restaurant and your specific refrigeration needs. Whether you choose a reach-in model or undercounter unit, an excellent refrigerator and freezer will be the cornerstone of your kitchen. Refrigerator: Some common types of refrigerators include walk-in coolers, reach-in fridges, pass-through options, or prep fridges. Your restaurant will likely require a combination of different types. Freezer: Like refrigerators, freezers come in various sizes and styles to suit your needs and food capacities. Use proper cold storage practices to avoid cross-contamination. 4. Storage Equipment Storage equipment keeps your kitchen and workspaces tidy, increasing productivity and reducing workplace accidents. As you purchase and use these items, follow proper food storage guidelines to ensure food safety. Shelving: Use shelving in your walk-in cooler or freezer to store different foods, or place it in the kitchen to keep pots, pans, dinnerware, and dry ingredients accessible. Shelving comes in various sizes and configurations, allowing you to customize your shelving for your space. Bussing and Utility Carts: Bussing and utility carts are handy in all areas of kitchen operation. Utilize them in the front-of-house area for bussing tables or in the back-of-house area for moving heavy equipment or ingredients. Sheet Pan Racks: Sheet pan racks can store and transport foods, but you can also use them for holding and proofing bread. Sheet pan racks are tall rather than wide, so they don't cover valuable counter space in cramped kitchens. Food Storage Containers: Food storage containers are the perfect multi-purpose tools for storing prepped ingredients, mixing sauces and stocks, or holding dry items like pasta or rice. Many containers come with colored lids or markings for easy organization. Drying Racks: Drying racks provide a place to store and air-dry dinnerware, glassware, cookware, cutting boards, and utensils. Dunnage Racks: Dunnage racks also dry equipment, but they sit only a few inches off the floor for increased stability. Use them for heavy items such as canned goods, rice, or large appliances. 5. Food Prep Equipment Restaurants have different requirements for food prep equipment depending on their recipes. However, most foodservice establishments use a few key items to increase the efficiency of their kitchen. Food Processors: These versatile appliances can help reduce valuable prep time. Use them to make sauces, combine ingredients, chop vegetables, and slice cheese. Prep Tables: Place appliances and equipment on these sturdy prep tables or use them as a surface for prepping ingredients or assembling dishes. Mixers: While bakeries and pizza shops might use commercial mixers most frequently, every restaurant can use this appliance to increase efficiency in food preparation. Spice Grinders: While using pre-ground spices is economical, freshly ground spices and herbs have a unique flavor that can give your recipes more depth. Blenders: Most commonly found in bars and cafes, blenders have many uses ranging from mixing drinks, combining sauces, or creating marinades. 6. Smallwares Smallwares, also known as cookware, are tools used in the kitchen to prepare and cook your dishes. Carefully consider the quantity of each item when ordering smallwares for your new kitchen, so your employees aren't fighting for the same tool. Chef Knives: A sharp set of knives is the most important smallware in a kitchen. They make food prep easier and decrease the risk of accidents and cuts. Cutting Boards: There are many types of cutting boards available with different materials that lend themselves to specific tasks. Make sure you color code your cutting boards to prevent cross-contamination and follow HACCP guidelines. Mixing Bowls: Purchase multiple sizes of mixing bowls for different applications, such as blending batter or whisking eggs. Pans: There are many kinds of pans, such as sauce, saute, braising, and fry pans. Consider which types and how many your kitchen needs before placing your order. Pots: Similar to pans, there are multiple types of pots, such as stock pots, double boilers, pasta cookers, sauce pots, and more specialized options. Whisks: Whisks are valuable tools that incorporate air into your ingredients, giving them a light and fluffy texture. You can also choose from the different types of whisks for the one that best suits your needs. Food Pans: Prepare dishes in the oven in food pans or use them to hold food in a food warmer until it's ready to serve. Food pans are especially crucial for caterers and buffets when transporting and serving food. Kitchen Spoons: Stir sauces in the back-of-house area, serve foods at your buffet, or remove ingredients from a bowl with various types of kitchen spoons. These versatile tools should be on every restaurant equipment list. Turners: If your restaurant or diner uses griddles, charbroilers, or grills, turners protect your staff from burns. Choose turners with high-heat handles to keep your employees' hands safe. Tongs: Tongs have a lot of utility, and you can use them for food prep, plating, or serving purposes, depending on your needs. 7. Janitorial Equipment Cleanliness is paramount in the foodservice industry, so your new business needs a stock of janitorial equipment and cleaning supplies. Different restaurants may require various cleaning supplies depending on their appliances and flooring, but there are a few universal necessities. Microfiber Cloths and Cleaning Rags: Microfiber cloths and rags have many uses in restaurants, from cleaning up spills, wiping down tables and chairs, polishing glassware, and more. 3 Compartment Sink: Use 3 compartment sinks to clean and sanitize your products completely and follow health codes. In addition to your compartment sink, you'll also need to invest in a grease trap and a commercial faucet. Foodservice Chemicals and Sanitizers: Choose the right chemicals for cleaning your commercial equipment, and don't forget sanitizing chemicals that keep your products safe. Trash Cans and Recycling Bins: Every establishment needs a place to dispose of their trash, so place trash cans and recycling bins strategically throughout your establishment. Mops and Mop Buckets: Mopping your floors at the end of the day helps clean up any spills and messes that accumulate during service. Wet Floor Signs: Wet floor signs alert customers and employees to take caution when walking on slippery floors. Scrubbers and Sponges: Order a variety of scrubbers and sponges with different abrasiveness so you have heavy-duty options for stuck-on messes or soft sponges for cleaning delicate items. Restroom Supplies: Stock up on restroom supplies like toilet paper, paper towels, hand soap, urinal cakes, and baby changing tables. Brooms and Dustpans: Sweep up food dropped on the floor, dust, and more with brooms. You can use them to clean up messes in the front or back-of-house area. Cleaning Chemical Buckets: Mix cleaning chemicals safely by using these proper cleaning chemical buckets. These buckets come in different colors, allowing you to color code them for easier organization. As you consider stocking your kitchen before opening day, use our downloadable equipment list to guide your purchases. With options ranging from food prep supplies to refrigeration equipment, this list gives you peace of mind and helps your operation run smoothly from your first customer to your last. In addition to equipment, don't forget to stock up on spices, dry goods, and other food and beverage items to bring your menu to life.

  • How Much Does It Cost to Start a Restaurant?

    Opening a restaurant is your dream, but is it something you can afford? Don't give up if you're intimidated. Just like any big investment, most people require financial assistance in the form of a bank loan to afford the startup costs. We'll help you weed through the expenses of starting a restaurant so you can create a reasonable budget and acquire the funding you need. Learn more about the costs you may accrue when opening a restaurant: Security Deposit Costs Construction Costs Equipment Costs Furniture and Tableware Costs POS System Costs Food Inventory Costs Licensing Costs Marketing Costs Salaries and Wages Costs New Business Startup Resources How Much Does It Cost to Open a Restaurant? Starting a restaurant can cost anywhere from $180,000 to $800,000, with various factors influencing the final bill. The average cost of opening a restaurant is $275,000 or $3,046 per cover for a leased space, according to a recent survey. This number jumps to $425,000 or $3,734 per cover with an added land purchase. Numbers like this can be slightly deceiving because there is no one-size-fits-all answer to this question. The cost of your restaurant will be affected by a number of factors, including the location of your business, your restaurant concept, and whether you choose to lease or buy your space. Restaurant Startup Costs Before you come up with a final number and apply for a restaurant startup loan, familiarize yourself with the types of expenses you need to account for in your budget to calculate the cost of opening a restaurant. We’ll provide you with an average restaurant startup costs breakdown as well as some ways you can reduce your spending. 1. Security Deposit or Down Payment Securing the property for your restaurant will be one of your major expenses. If you plan to buy the location outright, you’ll need a down payment of 10% of the property value to secure your loan. The cost of real estate varies greatly by location but when it comes to restaurants, a great location is key. If you choose a poor location because it’s less expensive, your business may end up suffering in the long run. Down Payment for Loan: $12,500-$40,000 How to Save on Security Deposit Costs: Choose to lease a commercial space instead of buying and you’ll only be responsible for a security deposit and first month’s rent. Try renting space in a food hall to test out your restaurant concept. The cost of renting a booth will be much less than leasing an entire space. Consider buying a food truck instead of making a land or building purchase. Test your menu with a ghost kitchen to gain a following and save up before investing in a brick and mortar location. 2. Construction or Renovation Whether you are making improvements to an existing building or starting from scratch, construction costs will be one of your greatest expenses. Utility costs, such as water, gas, and electricity, can add up quickly and usually range from $1,000 to $2,500 a month for a ~4,000 square foot establishment. Making your restaurant ADA accessible from the start may also add $10,000 to $30,000 to the bill, but can save you on legal fees down the line. The extent of your construction and renovations will determine your total cost. Construction Cost: $140,000-$350,000 How to Save on Construction Costs: Purchase an existing commercial space and convert it to a restaurant instead of investing in a new build. Buy an existing restaurant that’s already outfitted with plumbing and HVAC to save time and money. 3. Kitchen Equipment Foodservice equipment will be your next biggest expense. Not only do you need cooking equipment like ranges, flat top grills, and charbroilers, you also need refrigeration units to store your food items and warewashing equipment to keep your dinnerware clean. If your restaurant has a bar, you’ll need to invest in a tap system, liquor displays, and underbar organization. Don’t forget all of the pots, pans, and utensils required to make your menu items. Equipment Cost: $75,000-$115,000 How to Save on Equipment Costs: Leasing your restaurant equipment instead of buying it outright can help to free up more of your initial budget. Buy used equipment instead of new. Check out Scratch and Dent merchandise with minor superficial damage that has no effect on its operation. 4. Furniture and Tableware Your furniture and tableware budget is tied directly to your restaurant concept. If you plan to open an upscale restaurant with a complex menu, you’ll most likely want to invest in high-end furniture and elegant china dinnerware. On the other hand, if you have a simple menu and casual concept, your furnishings and tableware will probably be more economical. Either way, you’ll need enough dinnerware, glassware, and flatware to serve all of your guests on your busiest shift. Furniture and Tableware Cost: $20,000-$80,000 How to Save on Furniture and Tableware Costs: Skip the tablecloths and invest in attractive tabletops instead. You’ll save money in your budget and you’ll benefit from reducing your water usage on laundering linens. Keep an eye out for restaurants that are closing. Many business owners are happy to sell their inventory and you might get a good deal on fixtures and dinnerware. 5. POS System A POS system will be beneficial to your restaurant in many ways. Not only does it streamline the ordering process, point of sale technology helps with inventory management, employee management, and sales reporting. Your POS package should include front-of-house stations with touchscreen monitors, receipt printers, and credit card scanners. Back-of-house components include kitchen displays or ticket printers. POS systems from Toast include mobile features like tableside ordering and payment, which help automate processes and free up time for your staff. POS System Cost: $12,500-$20,000 How to Save on POS System Costs: Compare quotes from POS system providers to get the best deal for your business. Be conservative. There are many features and accessories you can add onto your POS system package, but you can save money by going with a basic system. You can always add onto your package in the future. Don't be afraid to negotiate. If you're buying a POS package, ask if the vendor will throw in training sessions free of charge. 6. Initial Food Inventory Your initial food inventory cost will be greater than daily or weekly replenishment because you’ll need to include non-perishable items. Condiments, spices, oils, and coffee are just a few of the items you’ll need to build up your staple inventory. These ingredients will last you a long time before they need to be replaced, especially if you buy in bulk. To come up with an initial food cost projection, start by analyzing your menu and pricing out each ingredient. Food and Beverages Cost: $5,000-$25,000 How to Save on Food and Beverages Costs: Test out your menu items and weigh each ingredient. You’ll be able to come up with the most accurate projection by knowing exactly how much of each item you need. Buy in bulk. You’ll get the best deals on non-perishables by buying wholesale. 7. Licensing Running a restaurant requires several types of licenses before you ever open your doors. You’ll want to get a head start on this step because it can be a lengthy process. Liquor licenses in particular can be quite costly depending on your location and whether you live in a quota or non-quota state. Quota states only issue a limited number of licenses which can drive the cost up immensely. You will also want to set aside capital and contingency funding that could cover at least six months of downtime should an emergency or low sales occur. Business License Cost: $50-$400 Liquor License Cost: $300-$400,000 Certificate of Occupancy Cost: $100 Foodservice License Cost: $100-$1000 Health Permit Cost: $50-$1000 Sign Permit Cost: $20-$50 Insurance Cost: $1000-$10,000 annually How to Save on Licensing Costs: There’s no way around the fees for most permits. However, you can choose to skip the liquor and stick with beer and wine only. This will lower the cost of your liquor license fees. 8. Marketing Getting the word out about your new restaurant is crucial. You'll have to set aside part of your budget for your initial marketing plan and grand opening. The cost for marketing is going to vary greatly depending on what outlets you choose and whether you hire an ad agency. With hiring a PR agency, you can expect the cost to be around 3%-6% of your sales. Marketing Cost: $6,000-$30,000 How to Save on Marketing Costs: You can reduce your marketing cost considerably by utilizing free advertising through social media channels like Twitter and Instagram. Instead of paying for a website, make a free Facebook page. Make a listing for your restaurant on Google My Business. It's free and allows you to share all the important info about your business like your location, hours, and website. 9. Salaries As you begin to hire your staff, keep in mind that paid training is customary for new employees. Wages and salaries will come into play in the months and weeks leading up to your opening day. Depending on your staff requirements, this cost will vary greatly. Salaries and Wages Cost: Varies How to Save on Salaries and Wages Costs: Instead of hiring all of your staff at the same time, hire as needed. If you have six months until your opening day, you don't need a full staff on board yet. This will cut down on the wages you have to pay out. It's easy to forget about your own salary when you're accounting for so many other costs. Many restaurant owners don't pay themselves until the business starts turning a profit. New Business Startup Resources Looking to start up a new business other than a restaurant? Check out some of our "how-to" resources to get your business idea off the ground. How Much Does it Cost to Open a Bar? How to Start a Food Truck How to Start a Coffee Shop How to Open a Pizza Shop How to Start an Ice Cream Shop How to Start a Donut Shop How to Start a Brewery How to Start a Buffet There are many different types of restaurants and each of them has a unique budget requirement. Thankfully, no matter what type of restaurant you choose to open, you can still turn a profit and be successful. Remember to follow our money-saving tips and you'll avoid falling into the trap of overspending.

  • Should You Lease or Buy a Commercial Dishwasher?

    As a business owner, you know that having a reliable dishwasher is essential to keeping your kitchen running smoothly. But when it comes to acquiring one, should you lease or buy? While both options have their advantages, it's important to consider the long-term impacts on your business. We'll explore the pros and cons of each option to help you make the best decision for your business. Shop All Commercial Dishwashers Commercial Dishwasher Lease vs Buy Choosing between leasing and buying a commercial dishwasher can be challenging, as it depends on your business's budget and specific needs. Leasing offers a lower upfront cost and flexibility for upgrade options while buying provides tax deductions and long-term savings. Leasing may lock you into chemical contracts and buy-out fees. Buying allows you to find the most technologically advanced models that hold resale value. Ultimately, the decision to lease or buy your commercial dishwasher will depend on your budget, needs, and preferences. Consider the upfront costs, tax deductions, and available technology when making your decision. Take a closer look at the details of leasing a dishwasher compared to buying one below: Commercial Dishwasher Leasing If you're in the market for a new dishwasher, one option to consider is leasing. There are various benefits and downsides to consider before signing a contract to ensure that leasing a dishwasher is the right choice for your business. Pros to Leasing a Dishwasher Leasing a dishwasher can offer a number of benefits over purchasing one outright. Here are some of the top pros to leasing a dishwasher: Lower Upfront Costs: Leasing a dishwasher can be a more affordable option than purchasing a unit. With a commercial dishwasher rental, you'll typically pay a monthly fee rather than a large upfront cost. This can be especially helpful if you're working with a tight budget or need to conserve your cash flow. New and Unused Equipment: When you lease a dishwasher, you can be sure that you're getting a brand-new and unused machine. This means you won't have to worry about any wear and tear from previous owners. Maintenance and Service Included: When you lease a dishwasher, your contract will typically include maintenance and service. This means that if anything goes wrong with the machine, you won't have to worry about finding a repair technician or paying for repairs out of pocket. Instead, the leasing company will take care of all necessary maintenance and repairs. Flexibility: Leasing a dishwasher can offer more flexibility than purchasing one outright. With a lease, you can often upgrade to a newer or more advanced model at the end of your contract, rather than being stuck with an outdated machine. Additionally, if your business needs to change or you need to relocate, you can often transfer your lease to a new location or business. Cons to Leasing a Dishwasher While leasing a dishwasher may seem like a convenient option, there are some downsides to consider before signing a lease agreement. The following are some of the cons of leasing a dishwasher: Energy-Inefficient Equipment: Through a leasing program, you may not have access to the latest or most energy-efficient dishwashers. This means you could end up paying more in utility and chemical bills and not benefitting from the latest technology. Sub-par Service and Delays: Most leasing companies will reach out to a technician for you should your machine need maintenance. However, you may end up with service companies that are not authorized by the manufacturer of your unit. This also means that you’ll need to wait for the leasing company to operate as the middle-man to the service company, leading to longer downtime, which can be detrimental to your business. Higher Insurance Premiums: Leasing equipment can require higher insurance premiums. This is because the leasing company may require you to have a higher level of coverage to protect their investment. Markup on Chemicals: Some leasing companies may require you to use specific chemicals, which can come at a markup and the price may increase over time without clear indication in your contract. You may also be locked into purchasing a minimum amount regardless of if you need it or not. This can add up over time and increase your overall cost in the long run. Buyout Fee: If you decide to return the equipment before the lease term is up, you may be subject to a buyout fee. This can add an unexpected cost to your budget. No Tax Write-Offs: Leased equipment is not eligible for advantageous tax write-offs or deductions, which could impact your bottom line. Buying a Dishwasher Although leasing a dishwasher may seem like a cost-saving tactic, it may not be the best fit for your business in the long run. We’ve created a pros and cons list for owning a commercial dishwasher. Pros to Buying a Dishwasher When it comes to purchasing a dishwasher for your business, there are several pros to consider: Long-Term Savings: While the initial cost of purchasing a dishwasher may be higher than leasing one, in the long run, buying your own machine can save you money. You won't have to worry about monthly lease payments or chemical fees, and you'll own the equipment once it's paid off. Choose Your Own Service Company: When you own your dishwasher, you have the freedom to choose your own service company. This means you can shop around for the best prices and quality of service, rather than being stuck with the service provider chosen by the leasing company. You also cut out the middleman and can schedule service appointments when they are most convenient for you. Tax Benefits: Many dishwashers, especially energy-efficient models are eligible for tax deductions depending on the state. Leased units do not qualify but when you buy a dishwasher, you may be able to claim depreciation on your taxes and reduce your taxable income. No Long-Term Contracts: When you lease a dishwasher, you're typically locked into a long-term contract or subject to buyout fees. But when you buy your own dishwasher, you have the flexibility to sell it or upgrade it whenever you want, without being tied down by a contract. Purchase Up-To-Date Models: Leasing companies may not always offer the newest and most advanced dishwashers on the market. When you buy your own dishwasher, you can choose the latest and technologically advanced models, with features like ventless capabilities and Wi-Fi connections, that meet your specific needs. Choose Your Own Chemicals: Owning your own dishwasher also gives you the freedom to choose the cleaning chemicals that work best for your business, rather than being limited to the options provided by the leasing company. Resale Value: If you own your dishwasher, you have the option to sell it later on if you no longer need it or want to upgrade to a newer model. This can help you recoup some of the initial cost and put that money towards a new dishwasher or other business expenses. Cons of Buying a Dishwasher Purchasing a commercial dishwasher is certainly an investment and many business owners experience sticker shock as they shop for one. Here are a few cons to buying a dishwasher instead of leasing one: Upfront Cost: The most obvious downside to purchasing a dishwasher is the high upfront cost. Depending on the model and features you want, a dishwasher can cost anywhere from a few hundred to several thousand dollars. For some businesses, this cost may be too much to handle all at once. Insurance Cost: If you purchase a dishwasher, you'll likely need to insure it against damage and breakdowns. This can add an extra expense to your budget that you might not have considered. Preventative Maintenance and Repairs: Over time, your dishwasher will need regular maintenance to keep it running smoothly. This can include things like cleaning, replacing parts, and repairing any damage. If you own your dishwasher, you'll be responsible for scheduling service calls and covering these costs. Deciding whether to lease or buy a dishwasher comes down to your business's specific needs and financial situation. If you don't have the budget to make a large purchase upfront, leasing may be the easier option. However, if you are a franchisee or already have a well-established business, buying a dishwasher may be the better investment due to its longevity. In the long run, purchasing a commercial dishwasher outright is considered to be more cost-effective than leasing. If you are ready to make the investment, you can use our commercial dishwasher reviews to aid your search for the perfect unit for your business.