Investing in the right restaurant equipment is an essential aspect of starting or upgrading a restaurant business. When it comes to choosing between new and used restaurant equipment, there are several considerations to weigh.

This comprehensive guide aims to provide a detailed insight into the benefits, drawbacks, and factors to consider when deciding between new and used restaurant equipment.

New Restaurant Equipment

New restaurant equipment, fresh from the manufacturer, usually comes with the latest technology, fewer maintenance needs, and greater reliability. However, they may also bear a higher price tag, affecting your budget.

Pros

New restaurant equipment has distinct advantages. Notably:

• Warranties: Purchasing new restaurant and kitchen equipment typically comes with a manufacturer's warranty. This offers restaurant owners assurance and protection against defects or malfunctions that might occur within a specified period. It means any repair or replacement costs incurred due to faulty manufacturing are covered, thus providing financial security.
• Energy Savings and Rebates: As part of the drive towards more sustainable and energy-efficient appliances, many manufacturers now design their equipment to be energy-saving. In many regions, these energy-efficient models may qualify for energy rebates, effectively reducing the overall cost of the equipment and saving you money on utility bills in the long run.
• Newest Tech: New restaurant equipment often features the latest in kitchen technology. This can include advancements in cooking speed and efficiency, enhanced digital controls, or even smart features that can improve the overall functionality of your kitchen, offering better control and convenience.
• Less Maintenance: New commercial kitchen equipment usually requires less maintenance, at least in the first few years of operation. This is because parts are new and thus less likely to wear out quickly. This reduces the frequency of repairs, saving you time and money that can be invested elsewhere in your business.
• More Reliable: New equipment is generally more reliable, as it hasn't been subjected to any prior wear and tear. This can translate into fewer breakdowns and a smoother, more predictable kitchen operation. Uninterrupted service can enhance your restaurant's reputation and customer satisfaction.
• Easier to Pass Health Inspections: New kitchen equipment is designed to meet current health and safety standards, making it easier to pass health inspections. This is especially critical in the food industry, where failing a health inspection can have severe consequences for your business.
• Improved Aesthetics: A not so obvious benefit of new commercial kitchen equipment is the aesthetic appeal. New, modern equipment can enhance the overall look of your kitchen, which can be a selling point if your restaurant features an open kitchen design where customers can see the cooking area.

Cons

Despite the advantages, new restaurant equipment also has its drawbacks:

• High Up-Front Costs: New equipment tends to be more expensive upfront, which can be a significant outlay, particularly for new or small businesses. This could potentially strain your budget, especially if you need to equip a whole kitchen from scratch.
• Depreciation:Just like a new car, new equipment starts to depreciate as soon as it's purchased. If you plan to sell the equipment in the future, you're likely to receive less than what you initially paid, especially in the first few years of ownership.
• Longer Lead Times: New equipment, especially those that are custom-made or come from overseas manufacturers, can have longer lead times. This can be a disadvantage if you need equipment quickly or are trying to open your restaurant by a certain date.
• Potential Over-Purchasing: The appeal of new and shiny equipment might lead to over-purchasing, buying more or more advanced equipment than necessary. This can lead to unnecessary expenses and wasted resources, especially if certain equipment ends up underutilized.

Used Restaurant Equipment

Buying used restaurant equipment, while potentially lacking in warranties and advanced features, offers the advantage of cost savings. However, their availability and condition may vary significantly.

Pros

Here are some advantages of investing in used restaurant equipment:

• Save Money: By purchasing used equipment, restaurateurs can save a substantial amount of money. The price tag for used items is often considerably less than their brand new counterparts.
• Make Room in Your Budget: The savings realized from buying used kitchen equipment can free up funds for other areas of the business, such as marketing, staff training, or menu development.
• Finding a Piece with Character: Sometimes, used restaurant equipment can bring a unique charm or character to your restaurant, particularly if it has a distinctive design or comes from a renowned brand.

Cons

The downside to used restaurant equipment includes:

• Limited Availability: Unlike new equipment, the availability of used items can be unpredictable. You might have to spend more time hunting for the specific piece you need.
• No Warranty or Ownership History: Used restaurant equipment usually does not come with a warranty, and the lack of a clear ownership history can be a risk.
• More Maintenance and Repairs: Since used equipment has been previously utilized, it may require more frequent maintenance and repairs, which can add to the overall cost.

Scratch and Dent Restaurant Equipment

Scratch and dent equipment refers to brand new equipment that suffered minor cosmetic damage during transit or in the warehouse. These items usually come at a lower price but with a limited selection.

Pros

The benefits of scratch and dent equipment include:

• Brand New Equipment: Despite the cosmetic flaws, the equipment is brand new and hasn't been used.
• Warranties: Most scratch and dent equipment come with manufacturer's warranties.
• Cost-Saving: This restaurant equipment is often sold at a discount due to the cosmetic damage.

Cons

On the flip side, scratch and dent equipment also has its downsides:

• Limited Selection: The availability of specific items can be inconsistent.
• Cosmetic Damage: While the damage is only superficial, it might be noticeable and affect the aesthetics of your restaurant.

Factors to Consider When Choosing Between New and Used Restaurant Equipment

When selecting between new, used, or scratch and dent equipment, various factors come into play:

Budgetary considerations are paramount when deciding between new, used, or scratch and dent equipment. New equipment, while more technologically advanced and reliable, tends to cost more upfront. Used and scratch and dent equipment, on the other hand, can be more cost-effective initially, but may entail additional costs down the line in terms of repairs and maintenance. It's important to analyze your restaurant's financial situation carefully and make a choice that suits your budget while also meeting your operational needs.

Type of Equipment You Need

The type of equipment you need is a crucial factor in making your decision. Equipment like refrigeration units, which play a critical role in maintaining food safety and quality, may be better purchased new to ensure optimal performance and reliability.

On the other hand, equipment used less frequently or those that are less critical to day-to-day operations might be purchased used without much impact on the restaurant's performance.

Volume

Your restaurant's volume of operations can significantly influence your decision. High-volume restaurants that are expected to serve a large number of customers consistently may benefit from new, robust, and reliable equipment.

The constant use of equipment in such settings can take a toll on used equipment, leading to more frequent breakdowns and, consequently, higher maintenance costs.

Warranty Comparison

Warranty is a safety net that protects you from unforeseen equipment failures. New equipment often comes with extensive warranties, covering various parts and labor costs if the equipment fails or malfunctions.

Used equipment, however, might come with limited or no warranties, meaning that any repairs or replacements will come out of your pocket. It's essential to weigh the benefits of a comprehensive warranty against the cost savings of used equipment.

Lifespan Evaluation

The expected lifespan of the equipment is another crucial factor. New equipment, with its unused parts and state-of-the-art technology, is generally expected to last longer than used equipment.

The latter, having been used before, might have a shorter operational life and require replacements sooner. Therefore, considering the projected lifespan against the cost can guide you in making a more financially sound decision.

Resale Value

The equipment's potential resale value can also influence your choice. New equipment tends to depreciate faster than used equipment. Thus, if you plan to sell the equipment in the future, used equipment could potentially retain its value better and fetch a higher price.

Environmental Impact

Lastly, your decision has environmental implications. Opting for used equipment can be viewed as a form of recycling, reducing the amount of waste generated and energy used in manufacturing new equipment.

If sustainability is a key part of your restaurant's mission, this factor might weigh more heavily in your decision-making process.

How To Save Money on Restaurant Equipment?

Various strategies can help save money on restaurant equipment, whether it's negotiating prices, buying in bulk, or exploring finance options.

• Rent: Consider renting specialized items that aren't needed daily, like extra large ovens for occasional catering events. Many rental companies offer competitive prices.
• Research: Become familiar with average market prices by comparing various sellers online. Reading reviews can provide insight on the best places to buy.
• Buy in bulk: If opening a new restaurant, buying equipment in bulk may lead to discounts. Check with suppliers for bulk-purchase deals.
• Wait for sales: Manufacturers often hold sales during industry events or end of financial year. Plan and time your purchases accordingly.
• Maintain equipment: Regular servicing extends equipment lifespan. Train your staff in proper use and routine maintenance to prevent unnecessary damage.
• Negotiate: Don't accept the first price offered. Most sellers are open to negotiation, especially when you're buying multiple items.

Leasing Restaurant Equipment

Leasing restaurant equipment is another viable option for restaurant owners, offering flexibility and potential tax benefits.

• Flexibility: Leasing allows for upgrading or swapping equipment without committing to a long-term purchase.
• Tax Implications: Leasing often comes with tax benefits, as lease payments are usually deductible as a business expense.
• Initial Costs: Leasing generally involves lower upfront costs compared to buying, easing the strain on your budget.

Conclusion

Choosing between new and used restaurant equipment is a crucial decision that can significantly affect your restaurant's operations and financial health.

Understanding the pros and cons of each option, alongside considering your budget, needs, and long-term goals, can guide you in making the most beneficial decision.

Whether it's purchasing new equipment, finding value in used ones, or exploring leasing options, there are numerous pathways to equip your restaurant effectively and economically.

Here at Kitchenall, one of the leading suppliers of commercial restaurant equipment in the country, we are always ready to answer all your questions. Whether you want advice on new vs used equipment or just look for the next high-quality unit for your restaurant feel free to call us at +1 917-525-2066.