Should Restaurants and Bar Lease or Purchase Equipment?

Should Restaurants and Bar Lease or Purchase Equipment?

When it comes to restaurant and bar operations, there are a lot of decisions that need to be made regarding the equipment used. The most important decision is whether you should lease or purchase the necessary kitchen, bar, and serving equipment. Both options have their pros and cons so it can be difficult to decide which route is best for your business.

Leasing Equipment

Leasing is a great option for restaurants and bars that may not have the extra money to purchase equipment upfront. When leasing, you pay a monthly rental fee instead of buying the equipment outright. This allows businesses to budget better and typically limits the amount of capital needed to get started. Additionally, leases usually come with a much shorter lock-in period than purchasing which means that you’re not tied to the equipment for too long and can easily upgrade when necessary.

Purchasing Equipment

On the other hand, purchasing your kitchen, bar, and serving equipment may be a better option if you’re in it for the long haul. While the upfront cost of purchasing is higher than leasing, you’re making an investment in your business that can help increase profits over the long run. When you purchase equipment, it’s yours to keep which means you have the freedom to use and upgrade as needed without worrying about breaking a rental agreement. Additionally, purchasing often eliminates any extra fees associated with leasing such as rental taxes, maintenance costs, and early termination fees.

Factors to Consider

No matter which routes you decide to take, it’s important to do your research and understand what is best for your business. Consider factors such as the lifespan of the equipment, expected use, and budget when deciding between leasing or purchasing kitchen, bar, and serving equipment. With the right decision, you can ensure that your restaurant or bar has the best equipment available and can run as efficiently as possible.

At the end of the day, it’s important to weigh all your options to make an informed decision about leasing or purchasing kitchen, bar, and serving equipment. There are pros and cons to both options, so it’s important to assess what is best for your business in the long run. If you need to purchase or lease equipment for your establishment, contact the team at Leading Edge Commercial Capital to explore our affordable and flexible options.