Foodservice equipment and dining furniture is an essential component of any new restaurant. There is no doubt that it’s a necessity. However, most startups or small restaurants can’t afford to outfit their kitchens with the latest, brand new commercial ovens and dishwashers or decorate their dining area with bespoke, durable tables and chairs. And if you, as a restaurateur, find yourself in this situation, then leasing might be the alternative solution to your problems.
Here, we look at the reasons why you should consider leasing your restaurant equipment and furniture:
Save some cash
Buying equipment and furniture for a new restaurant can be very expensive – a commercial-grade dishwasher alone will cost a hefty chunk of change, not to mention the many other items you will need to run a successful eatery. By leasing commercial equipment, especially the larger objects, you’ll be able to put your working capital toward other necessities, like food orders, payroll, the marketing budget or the fit out of your restaurant.
Useful when testing out the waters
Leasing equipment and furniture for your business is a particularly good idea when first starting out, as the restaurant industry is known for its high failure rate. Some studies estimate that 60% of restaurants fail within the first year of opening, while 80% close their doors within the first 5 years. We know, this isn’t what any restaurateur wants to hear, but it’s an all too real situation that should be properly prepared for in case the need arises.
By renting equipment and furniture instead of buying, you’ll suffer less of a loss if you find yourself in the unfortunate position of having to close down.
Get up and running faster
If you choose to buy, there is a high probability that you’ll have to wait a while for either the funding to acquire the items require or the delivery of your equipment and furniture. That’s a lot of wasted time that no new restaurant can afford. Leasing the equipment and furniture is an easy way to fit out your entire kitchen and dining space so your restaurant can be operational as soon as possible.
Keep up with the latest equipment & trends
The rapid advancements in technology and quick turnover of the latest trends and interior design can make keeping up-to-date with equipment and furniture nearly impossible. This is especially true if you choose to buy – well unless you have a never-ending source of capital to work with, of course.
Leasing allows you the opportunity to upgrade your kitchen and dining area much faster so that your restaurant is always ahead of the curve and never falls behind.
Favourable tax benefits
When leasing equipment, you may be able to use rental payments as a tax deduction, writing it off as a business expense and thereby saving some money.
No paying for maintenance or repairs
Leasing means you are not responsible for any major repairs or maintenance that need to be done on the equipment and furniture, as it will be part of your rental agreement. It is well-known that restaurant equipment and furniture are subjected to more wear-and-tear than in any other industry. This means that you may have to replace or repair items that are most commonly used in your business. If you choose to lease, the owner of the equipment is responsible for the repairs or replacement.
Lease to own options
Many rental companies offer a lease-to-own option. Put simply, at the end of the lease term, you will be offered a buy-out option on the equipment and furniture you are currently renting. This option is best used for items that you plan to keep and use throughout the lifespan of your business, but may not be able to afford to buy upfront.
Where can you lease restaurant equipment and furniture?
If you’re thinking about leasing equipment and furniture for your new restaurant, but have no idea where to start looking, then we have the perfect solution for you. Contractors.Direct has a curated database of thoroughly vetted, highly qualified contractors who offer equipment and furniture rental services. Get in touch with us and let us connect you with the perfect fit.