We often see folks coming in and assuming failed restaurants. After they have purchased the restaurant they find out it’s filled with failing equipment and they have to sink a lot of money into rebuilding the company’s reputation. So, the question is, is buying an existing restaurant always financially sound? Even if you’re the new guy who has to get inspected, you can get into a restaurant affordably.
PLAN! PLAN! PLAN! Your first step should be a rock solid business plan. Your next step should be looking at buying good used equipment from a reputable brick and mortar company like One Fat Frog Restaurant Equipment. Let’s look at a package that was put together last week as an example.
Set up your whole restaurant with good used equipment– Here’s a sample list of equipment we just sold. It is almost a complete kitchen of equipment:
-double door refrigerator, stainless steel, $925
-gas steam table, $375
-Meat slicer, $600
-Panini Press, $225
-3 compartment sink, $325- wall mount
-4 burner range/ stove- gas, $670
-countertop charbroiler, $300
-gas fryer, $375
-Smokehouse smoker, $450
-coffee grinder, $200
-Fetco Brewer, $450
-Ice tea brewing system, $500
-True Megatop prep table cooler, $1199
-electronic cash register, $125
As opposed to new prices of $14,400 — you get a discount savings of over 50%! Really setting up shop is not as expensive as you think. Going to sell your restaurant? Buy a few newer used pieces, throw them in to up the value of your property.
Setting up a new facility really isn’t that hard. So if you’re taking over a piece of junk, consider why can’t you just take the same $20,000 to $100,000 you would put into a failing location and then have to repair their menu and reputation, when you can buy equipment for under $10k and build it right?
Really there is more affordability in used equipment then folks give credibility and it is possible to purchase a lot of equipment for a little money.