Anyone in the food service industry knows that for a business to flourish, there needs to enough equipment to make things smooth. For instance, those that specialize in desserts and cold or frozen sweets would do well with display fridges to entice walk-ins to buy them. With equipment available for lease with certain providers, food service business owners tend to have second thoughts whether they should buy or rent the equipment.
There are advantages and disadvantages of each, and they will depend on the situation of your business.
For instance, buying food service equipment ensures that you have it brand new. While rental equipment may still be in good condition, they’re far from new. If they finally break due to wear and tear, the rental company may charge you depending on the contract you signed. Another advantage of buying the equipment outright is that it is yours for life. As long as your food service business is running, you can use the equipment.
Of course, there are disadvantages as well. One would be the fact that there’s just a lot of equipment necessary for a smooth business operation. Buying them all can bloat your needed capital, and you have to operate for few months to get your return of investment.
As for renting, it has its good points. One would be the fact that you can continue doing business without having to buy the necessary equipment. As long as your business is running, you can save up for the equipment purchase while still reaping profits. It’s also a good option for business owners who need to open their food service company but are lacking in funds for, say, a freezer or an ice machine.
The downside is the fact that while you can continue doing business, a part of the money you make goes to the equipment lease. It essentially becomes a loan, where you can have what you want now but you don’t get your full paycheck for the next few months.
That being said, it’s important to evaluate the status of your food service business and see whether it is worth paying a lease for equipment taken out of what’s supposed to be your profits or if it’s worth the risk to wait a few more weeks and just purchase the equipment outright. Unfortunately, no expert can tell you what to do. You’re going to have to decide for yourself and think about the long term benefits of your potential decision.