Whether you are a new and fledgling business or a seasoned veteran in the commercial catering field, you will know that equipping your kitchen with products that can produce quality dishes whilst also being hard wearing, efficient and reliable is an expensive affair. In the current economic climate, with loans and spare finances hard to come by, the task of creating a working kitchen can seem unattainable, especially on a shoestring budget.
You may have researched the market for the most affordable prices and found the perfect equipment for your business however your budget may still not allow you to obtain these pieces. Rather than settle for models that are flimsy, poorly manufactured and are notorious for breaking down, there are certain tips that can help you to purchase what you want but for a lesser cost.
Handy Hints for Reducing the Cost of your Commercial Kitchen
If you are looking to fully equip a whole commercial kitchen or simply need to replace a few items, these handy hints will help you make some financially sound decisions.
Buy used equipment
Buying used or graded catering equipment can be a clever way to cut down costs however there are always risks involved. The equipment will probably not be under guarantee and therefore any breakdowns will result in you being liable to cover the full costs of engineer’s reports, parts and labour. If you decide that this option is the one for you, you should shop around to find equipment that has only experienced light use. Gas ranges, fryers and ovens generally have a longer lifespan as opposed to refrigeration, so these items are considered to be as safe to buy used as can be expected. Obviously, this safety is dependent on the age of the product and their previous level of usage. Similarly, steam tables are manufactured to be durable and hard wearing, so these items will also be good to buy used. Refrigeration can be expensive and although a used unit may look clean and tidy, without the manufacturer’s warranty you may find yourself facing expensive repair costs on notoriously delicate components e.g. the condenser etc.
Buy externally damaged equipment
If a new model is delivered and during this process the item receives any dents or scratches, the customer will obviously refuse to accept the item. It is taken back to the factory or storage facility but what happens then? It can’t be sold as new however the company will not want to discard a piece of equipment that is fine working order internally but has a few dents or scratches externally. With a little research, you will be able to hunt down these items and purchase them for a lesser cost than as if they were immaculate. The result is that you have a fully working piece of equipment, albeit with a minor dent or two, for a fraction of the cost. The only downfall to this course is that you may not have the luxury of choosing which model you want as there is no telling what equipment will get damaged in transit.
Buy equipment off season
As with clothes and other seasonal items, commercial equipment has its own peak season and off season. Just as you might buy Xmas decorations at the beginning of the year or in the summer for a reduced price or purchase a winter coat in the spring at a lesser cost, you can also purchase catering equipment in the same fashion. During hot periods ice machines and refrigeration prices will be at their highest, as businesses cope with the increased heat and try to keep their stock chilled. Throughout the cold, winter months the opposite may occur with chafing dishes and food heating equipment being priced higher. Aim to buy your equipment off season whenever possible to secure your business the lowest cost possible.
Buy energy efficient equipment in December
With the introduction of the Government scheme, Enhanced Capital Allowance (ECA), when you buy commercial catering equipment that is listed on the Energy Technology List (ETL) you are able to receive a tax rebate on the purchase price. This means that rather than wait for natural depreciation to occur you can capitalise on the equipment you purchase. Buying this equipment in December i.e. towards the end of the financial year, means that you will be entitled to a rebate in a matter of weeks rather than purchasing at the beginning of the financial year and waiting a whole year to reap the rewards. If you are looking at models which do not appear on the Government ECA scheme you may find that buying your commercial catering equipment in December can still bag you a bargain. If retailers haven’t managed to hit their sales quota for the year they may be more inclined to offer discounts and reduced purchase costs.
Buy through a leasing company
If you have researched all money saving aspects and find that you still aren’t able to kit out your kitchen within the available budget, you could be able to utilise a lease deal. You will be asked to submit details of your business and your own personal circumstances to a reputable third party company and if you meet the criteria you could purchase the perfect equipment for your business whilst spreading the cost over monthly instalments.
To find out more about leasing equipment, read our helpful 'The Truth About...Commercial Leasing' article and discover if this is a viable option for your business.
Where possible you should always try to purchase any equipment outright. However, lease deals may be the only viable way to equip your business to the quality and standard you require.
Looking to purchase commercial catering equipment whilst working to a tight budget may feel like an impossible task. By making shrewd business decisions and choosing the best options for your financial expenditure, fully equipping your commercial kitchen on even the smallest of budgets is entirely possible.