Purchasing used restaurant equipment can be an excellent way for new establishments to keep startup costs low. While buying used can save a significant amount on major purchases like ranges, refrigerators, and dishwashers, it does come with some risks. Used equipment may only last for a short time or work, and brand-new models may not.
Several important factors must be taken into account when buying used restaurant equipment. Thorough research and inspection before purchasing can help avoid costly surprises down the line.
Key Takeaways
Purchase used equipment from reputable dealers, not private sellers
Thoroughly inspect equipment for damage and test operation
Prioritize ovens, ranges, appliances, and tableware used
Avoid used refrigeration, freezers, and ice machines
Seek warranties and financing options as available
Make sure to get property insurance for used purchases
Evaluating the Condition of Used Equipment
Buying from Reputable Dealers
Purchasing used equipment from established dealers is preferable to buying from private sellers. Reputable used equipment retailers have servicing and repair capabilities that individual sellers need. They also are more likely to fully disclose any issues or defects with a piece of equipment up front.
The advantages of purchasing from a dealer include:
Access to servicing, repairs, and spare parts
Warranties on select purchases
Ability to see equipment operating on-site
Considerations with Private Sellers
Buying from private sellers, such as restaurants going out of business, can sometimes yield bargains. However, these purchases come with greater risks.
With private sellers, inspection and testing become even more critical. There is an increased likelihood that equipment has defects or problems the seller needs to be made aware of. Discriminating buyers should thoroughly vet these higher-risk purchases.
Inspecting the Equipment
Carefully inspecting used equipment before purchasing is a must. Check for:
Dents, cracks, and damage in the structure
Corroded or damaged surfaces
Stains or residue indicating leaks
Excess wear on moving parts
Also, closely evaluate any computers, control boards, buttons, and displays for signs of damage.
Testing Functionality
Verify equipment is in good working order before buying:
Turn on and test all functions and settings
Allow refrigeration to run for at least 15 minutes, checking the temperature
Cook food in ovens and on ranges to ensure even heating
Run dishwashers through complete wash cycles, checking water temperature, pressure, and drying functionality
Bring an Expert
Having a refrigeration tech, chef, or experienced restaurant manager inspect used equipment with you can identify issues you may need help with. It is well worth the cost of expensive purchases.
Types of Equipment Worth Buying Used
Gas Ranges and Ovens
Commercial gas ranges and ovens are workhorses designed to last through constant daily use. Many restaurant owners report getting 10+ years out of models from leading brands.
With readily available replacement parts, used ovens and ranges can almost always be kept in service. When evaluating used ovens and ranges, check the burners, igniters, and controls thoroughly.
Tableware and Smallwares
Dishes, glassware, utensils, pots, and pans are subject to a lot of abuse in a restaurant environment. Fortunately, these smaller commercial-grade items hold up well over the long term.
Buying used tableware and smallware in bulk can yield huge cost savings for new restaurants. When evaluating, look for any chips, cracks, dents, or other signs of excessive wear.
Appliances and Slicers
Appliances like stand mixers, food processors, and meat slicers are very durable in restaurant use. When testing, make sure gears and motors run smoothly. Look for cracking or other exterior damage.
Check that safety guards are intact on equipment like meat slicers. Replacement parts should be available from the manufacturer if needed down the road.
Equipment to Avoid Buying Used
Refrigerators and Freezers
Used refrigeration equipment comes with some major caveats. Even small leaks or compressor issues can be extremely costly to repair.
There are also health code restrictions in many jurisdictions on used refrigeration units. Any model that isn't NSF or ETL-certified cannot be used. Make certain any refrigeration unit meets regulatory standards before purchasing.
Ice Machines
Like refrigerators, ice machines can harbor bacteria and other contaminants that are very difficult to fully eliminate. Unless the equipment has been professionally refurbished, cleanliness issues must be considered carefully.
Scale buildup and mineral deposits from water are common problems with ice machines. Used models will likely require disassembly and deep cleaning before being put into service. Weigh the costs of this maintenance when evaluating pricing.
Sourcing Used Restaurant Equipment
Local Used Equipment Stores
Many larger cities have used restaurant equipment retailers. Visiting their warehouse allows first-hand inspection and testing of equipment. Be aware that some exclusively sold units are taken as trade-ins and may or may not have been serviced.
Independent Sellers
Keep an eye on listings from independent sellers on sites like Craigslist and Facebook Marketplace. Meeting at a seller's facility provides the opportunity to see equipment operating in a real-world environment.
Resale Sites
Online resale sites like WebstaurantStore and Katom Restaurant Supply have large inventories of used equipment. Staff technicians can thoroughly clean and refurbish items prior to resale. Most offer at least short 30- —to 90-day warranties on used equipment purchases.
Auctions
Restaurant equipment auctions can yield deals but typically don't allow testing or inspection before bidding. Know that as-is auction purchases will likely need servicing and repair work before they can be installed and used.
Online Only Suppliers
There are many used equipment-only online retailers. While purchasing sight unseen is riskier, look for detailed listings that disclose equipment condition. Return policies are recommended when buying online in case issues are discovered upon delivery.
Financing Used Equipment
One advantage of buying from used equipment dealers is many will arrange financing or leasing options. This allows restaurants to acquire the equipment they need without large upfront expenditures.
Equipment Financing
Many equipment finance companies offer loans tailored specifically to the restaurant industry. These loans allow used equipment purchases to be financed over 3-7 years. Look for lenders familiar with restaurants' unique needs.
Drawbacks include paying interest and establishment of liens on the financed equipment. If the restaurant fails, the lender can take back the equipment.
Equipment Leasing
Leasing used equipment is similar to financing but with some different considerations:
Monthly payments are typically lower
Terms run 2-5 years
Option to upgrade more easily
Equipment condition and maintenance stipulations
It may be harder to terminate leases
Evaluate these pros and cons before entering a lease. Compare offerings from established leasing companies that frequently work with restaurants.
Insurance Considerations
Proper insurance coverage is vital when making major used equipment purchases. Confirm that your business property insurance policy covers the full replacement value of used equipment in the event of theft, damage, or catastrophic loss.
Ask used equipment dealers about any manufacturer warranties that may be transferred upon purchase. Warranties over one year in length can provide valuable peace of mind.
Conclusion
While buy restaurant equipment requires more research and diligence, huge savings make it an attractive option for price-conscious new eateries. Focus on reputable sellers, thorough inspection, and proper insurance to get the best long-term value from used purchases. With the right approach, pre-owned equipment can be a smart investment in your restaurant's success.