Restaurant Equipment Leasing Serves Up Benefits
There are some kitchen mysteries that only British super-chef Gordon Ramsay can unravel, but it's no big secret why restaurant equipment leasing has become a popular option for many eating establishments. Here's a look at some of the most popular reasons to lease restaurant equipment.
Reasons to lease kitchen equipment
While owning freezers and ovens outright has tangible financial benefits including writing off the depreciation, restaurant equipment leasing can become part of the recipe for success if used wisely:
- Reducing overhead: Restaurant owners typically spend quite a bit of money long before they open their doors for the first time. Leasing a convection oven doesn't make as much of a dent in the bankroll as buying that equipment, which helps with the cash flow. Monthly lease payments are usually tax deductible as well, which definitely is a plus.
- Seasonal cooking: Kitchens that service summer camps and schools only operate during certain months of the year, so restaurant equipment leasing can be a really smart move for these types of operations.
- Menu changes: It's sometimes good to shake up the menu a bit. For example, if a sandwich shop owner decides to add hand-tossed pizzas to the menu, leasing the ovens and mixers is a smart option until the owner sees how well the pizzas are selling.
- Specialized equipment: Sometimes, restaurants enter into agreements to produce a food product for another company, such as brownies or waffle cones baked especially for an ice cream vendor. Food products like these may require specialized equipment, so it makes good economic sense to lease instead of buy, at least in the very beginning. Otherwise, the owner could be stuck with a very expensive paperweight if that ice cream vendor doesn't renew the contract.
- Failure rate: Most new businesses fail within the first few years, and this is especially true for restaurants. If an eating establishment goes bankrupt, the owners may have to sell their equipment at fire sale prices to pay back creditors.
- Expanding operations: Successful restaurant owners typically expand their operations, but growing too fast is one quick way to close down a thriving business. Kitchen equipment leasing is an effective way for owners to hold down operating expenses during that critical period of expansion.
Restaurant equipment leasing goes beyond the kitchen door
Typically, restaurants lease large pieces of equipment such as freezers or display cases, but equipment leasing vendors can help with all aspects of the business. Many types of equipment needed in restaurants is available from leasing providers:
- Credit card machines
- Office equipment
- Cash registers
- Tables and chairs
Equipment leasing vendors can help walk you through the entire process, from choosing what equipment you need to reviewing contract terms. Fill out a free quote request form to find a qualified leasing provider for your restaurant today.