If you’re reading this, you’re likely a restauranteur, and you’ve likely purchased restaurant equipment in the past. For those who haven’t, owning and operating a restaurant is an ALL-IN venture. Aside from managing your team of chefs & cooks, servers and managers, you need to maintain the costs of food, property and equipment.
Whether you’re starting a new operation or you’re due for some upgrades, purchasing restaurant equipment is one of the largest expenses initially, especially if you’re starting from scratch.
Restaurants need everything from ranges to refrigeration to tables, chairs and place settings. Starting something new takes a lot of capital and careful organization. For decades, owners have turned to our little slice of heaven in Anaheim, Ca when it’s time to purchase.
For the past 100 years, our team has been buying and selling equipment at auction, in turn offering financially flexible options for those in the food industry to purchase their restaurant equipment used, and saving a tremendous amount of money in the process.
In this post, we’re filling you in on the benefits of buying used restaurant equipment from Kohn-Megibow Company.
Duh. Buying used equipment costs less than buying new. Everyone knows that. That said, the sheer fact we have such large volume of products move through our warehouse allows us to sell used restaurant equipment cheaper than just about any other business in California.
Use the money you save on buying used restaurant equipment to craft new recipes! We won’t be offended if you decide to name a dish after us…
Unfortunately 60% of restaurants do not survive the first year and 80% of restaurants fail within five years, according to a recent study by Ohio State University. As a result, we see a very high turnover for equipment that is still in great working condition.
Operators like yourself can benefit from these second-hand items that have only been in service for one to two years. We fully test and examine the appliances to make sure everything is in top notch working condition.
Buying restaurant equipment can be compared to the car-buying process. When you purchase a new car it loses value as soon as you drive it off the lot. The same goes for new restaurant equipment. The value drops the minute it begins service.
When you purchase used, depreciation is FAR less dramatic. It already lost its initial value when it’s original purchaser purchased the equipment. (Say that five times fast!) As a result, you’re scoring a better overall value.
New equipment isn’t the only way to write off large purchases for tax purchases. Both new and used restaurant equipment qualify for the Section 179 deduction. The tax code allows a business to deduct the full purchase price of equipment, qualifying for a deduction during that current tax year.
Imagine filling a landfill with old restaurant equipment. Cringe-worthy! Purchasing used restaurant equipment is a form of recycling. By saving money, you’re also helping the environment.
Overall, purchasing used restaurant equipment presents better value in the short and long-term. Most items available through auction are in wonderful working condition and are a fraction of the price of a new model.
Thanks for reading!