Opinion: Why would operators ever tie up capital in kitchen equipment again?

Glenn Roberts crop
Glenn Roberts sees flexible financing as the way forward to generate catering equipment sales.

Winterhalter UK sales director, Glenn Roberts, believes that flexible finance schemes are the way to stimulate catering equipment sales:

Lockdowns, no shows and faltering consumer demand have stripped away the old certainties and shown us a new, fragile foodservice market. Those certainties aren’t coming back anytime soon – the prospect of more waves of the Covid-19 pandemic, more lockdowns and fewer customers is making everyone involved in hospitality rethink their operation.

A key consideration is capital expenditure. Do operators want to have thousands of pounds tied up in kitchen equipment that, in the new normal, could be standing idle, or working at half capacity?

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So here’s the question: why would they ever buy kitchen equipment outright again? Especially when there are increasingly efficient, often inexpensive, alternative finance options that won’t tie up their budget, releasing money for more important things, such as wages and ingredients. What’s more, financing an appliance means your customer can get the benefits of the latest technology – easier operation, lower running costs and increased efficiency. Plus, new equipment is greener, so they’ll be doing their bit for the planet, too.

There are other benefits, too. For example, several schemes offer the option of including service in the deal, which takes away another operational headache.

And in a Covid-19 world, hygiene and safety are paramount – especially in critical areas like warewashing. Installing a quality dish or glass washer, can guarantee hygiene and safety for a foodservice site’s staff and customers.

But what about the dealer? Can they still make a living out of arranging finance deals for their customer rather than selling the equipment outright? The answer is a solid yes – for example, one dealer who has been arranging ‘sales’ of Winterhalter dishwashers via the company’s Pay-Per-Wash scheme is now seeing an income of around £3,000 per month.

There’s a range of finance packages that can be tailored to your customer’s specific business needs – and to however high or low the budget is. You can also build in add-on options, for example with warewashing you might include a reverse osmosis water treatment systems as part of the customer’s finance package.

Renting is one option – and the customer knows exactly what the monthly outgoings are. If their business needs change, they can change the machine. They can even buy it outright if that works for them.

But if the customer still wants to buy outright, there are multiple purchase schemes that can spread out the load.

Bottom line is, these flexible finance options can help dealers help their customers – and add to the bottom lines of both.

Tags : financingopinionWarewashingwinterhalter
Clare Nicholls

The author Clare Nicholls

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