The food service industry is a competitive and cost conscious environment that is subject to diverse factors that can impede its profitability. Basic food or supply prices can increase without warning due to crop failures, socio-political issues in regions where wholesale supplies are derived and even recent increases in the cost of fuel can impact the profitability margins of catering companies. As with any service based business in the new economy, the businesses that not only survive but thrive are those that can strategize with regards to cost saving measures.
Catering equipment is essential to the operation of any food service provider. There is simply no way around it. Whether providing heater boxes (which keep delivered foods hot) or chaffers for buffet service rentals, and even items such as knives and serving utensils catering equipment costs money to acquire. Consider that even after you have purchased your catering equipment that there is a replacement cost over the long term to buy new items to replace lost, stolen or damaged equipment. Constant replacement of equipment can quickly eat away at narrow profit margins for the professional caterer. More businesses are investigating the purchase of second hand catering equipment to reduce operational costs.
Actual Savings
While the rate of economy for purchasing second hand catering equipment will depend on the actual item purchased, the average savings when choosing used versus retail purchase of the equipment is at least 50% off the cost of new purchases. In addition a frugal business owner will also save applicable taxes which do not apply on the sale of used equipment privately which adds an additional average of 10% savings. If given the opportunity to save 60% on restaurant equipment there are few small businesses that would refuse. It is an excellent opportunity to make investments in quality equipment for a fraction of the cost.
Consider also the retail cost of popular brand name restaurant and catering equipment. A small business that takes into consideration the tremendous savings can purchase equipment that is better quality. For instance if the opportunity exists to purchase a prestige knife set at full retail price for over $3000 the average business owner would likely make due with a more economical option, purchasing an average quality set for $1500. However if the opportunity to buy the prestige set of chef’s knives used for $1500 then the owner is well served by the discount and the quality of the equipment he is investing it. Purchasing second hand catering equipment used is worth the effort of sourcing.
Where To Look
Having decided to take advantage of purchasing second hand catering equipment to benefit your business, the next step is to actually source the used equipment. Where do you begin? One of the best places to find used catering equipment is online. Websites such as Craigslist© or Kijiji™ (Ebay® Classifieds) are an excellent location to find pictures and listings of available used equipment. Most listings include more than one photograph of the unit allowing the potential buyer to scrutinize it online before contacting the seller. If using Ebay to source second hand catering equipment there is an additional convenience as the item can be purchased online and shipping estimates can be received from the seller, with transportation and shipping of the item to be arranged online between buyer and seller. It is a very easy way to find high quality catering equipment at a fraction of the cost of purchasing brand new supplies.
In terms of purchase assurances Ebay does not offer any sort of buyers insurance and again the onus is on “buying beware” and common sense when purchasing items online. It is always recommended (particularly for a larger equipment unit or one that is quite expensive) to inspect onsite prior to purchasing. However this is may not be possible as the buyer and seller may live a good distance away. Shipping insurance can be purchased privately with the seller which would cover the replacement costs based on valuation should the shipment be misplaced or damaged during shipment.
Safety First
When examining the option of purchasing second hand catering equipment it is important to examine the equipment for any flaws. While the expectation within the industry is that used equipment be sold under a certain quality standard for safety, there really is no guarantee that the seller will abide by that level of business integrity. It is best to assume that the equipment is being sold for a reason. While many companies opt to upgrade their equipment and invest in new styles or brands for their catering business, the reality is that if there was no issue with the equipment the seller would have likely held on to the unit as a “back up” or additional item for larger functions.
When purchasing any item used it is in a common sense “buyer beware” environment and it is the same with business to business purchases as well. Assume that there may be a safety issue and inspect the item carefully not only to protect yourself from making a poor investment but also from potential liability. A pot with a crack may leak and injure an employee which would create a legal issue, particularly if it was known that the article was a second hand item. The onus is on the owner to take the appropriate safety measures.
Some types of catering equipment may not be desirable to be purchased used. However items such as cutlery, dishes, serving utensils and platters, china, grills, hot boxes, chaffers, knives and more can be easily sourced online for a fraction of the cost of new purchases. Items such as stoves and large gas appliances should always be inspected by a qualified technician before purchasing however to ensure proper functioning and that the unit continues to meet specific safety standards required by the industry. Failure to ensure that all equipment meets safety standards can inevitably leave the catering owner subject to liability for any damages caused by faulty equipment.