Restaurant Report

Free Newsletter - Subscribe Today

Search Site

Restaurant Management
Restaurant Marketing
Restaurant Service
Restaurant Operations
Restaurant Accounting & Finance
Restaurant PR
Restaurant Design
Chef Talk
Online Store
Buyer's Guide
E-mail Newsletter
Startup Resources
Advertising Info
About Us
Our Sister Site:

Follow Restaurant Report on Twitter

Restaurant Report on Facebook

Equipment Leasing
Commercial Restaurant Equipment: Your Best Options!

If you are thinking of opening a new restaurant then one of your biggest expenses will be buying equipment. Stoves, dishwashers, grills and coolers all can easily cost you thousands of dollars. Unfortunately, many of these items will quickly depreciate in value. Choosing second-hand equipment as an alternative can save you a lot of money. But with some of these items you risk breakdowns that may cause you to shell out more cash in repair costs then it would be to buy the equipment new.

For these reasons and others, equipment leasing is an attractive option for new restaurant owners looking to equip and furnish their eateries.

Benefits of Lease Financing:

Leasing equipment has certain advantages over buying:

  • Payments are tax deductible. If the restaurant will not be purchasing the equipment at the end of the lease, then it can claim the lease payments for a reduction in taxes.

  • Have more money with less worry. With equipment leasing you avoid the down payment needed to purchase the equipment. In addition, leasing companies often cover the costs of the equipment's installation and maintenance.

  • Use the latest technology. When the equipment lease is up, there is usually an option to upgrade to a new model if the lease is renewed.

What Should You Lease?

Just about any piece of restaurant equipment and furniture can be leased these days, but certain items are particularly good candidates for equipment leasing:

  • Ice machines and coolers. Both of these items are expensive yet have relatively short operating life spans. Their motors and condensers work very hard and can quickly burn out, and there is no market for used ones.

  • Dishwashers. This equipment is very expensive upfront and usually can be leased through your chemical supplier. Some chemical suppliers will even give you the machine if you buy your products from them.

  • Coffeemakers. Some coffee vendors will provide you with a machine if you buy the coffee from them. Though the product may cost you a little more, you will reap savings in maintenance and repair and have new equipment.

  • Linens. You can lease a variety of uniforms, towels, tablecloths, and napkins. Usually you pay a single fee to have them delivered, stocked, and laundered.

  • Computer system. Most small businesses these days rely on their computers to manage their sales, inventory, purchasing, bookkeeping, and employment data. Point of sale (POS) software is also fast becoming a staple among retail food services. But purchasing, upgrading, maintaining this equipment can be a big draw on cash reserves.

    Equipment leasing versus buying or equipment loans, is a practical way to equip your new restaurant while preserving cash flow and piece of mind!

    Copyright © 1997-2017 Restaurant Report LLC. All rights reserved.