As the old saying goes, achieving success is a marathon rather than a sprint. Above and beyond keeping himself in perfect shape, a well-prepared athlete invests in the right gear that will go the distance over time. However, there are so many choices and trends floating around that he needs to differentiate what is essential and what is a distraction.
This analogy is particularly applicable to independent restaurants, restaurant groups, and chains of every size, concept, and price point. In a similar manner, equipment—the gear that keeps a restaurant or bar moving forward—is one of the largest capital expenses. However, outfitting or updating a restaurant or bar is not a one-size-fits-all proposition. There is a dazzling array of innovations for kitchen, bar, and front-of-the-house needs that address the performance issues restaurants want to maximize, from automation, streamlined labor costs, and space and energy efficiency to smart kitchens/IoT, multi-functional equipment, and improved delivery and take-out.
Even with the noise generated by industry buzz about stylish appliances and add-ons that blur the line between function and interior design, management, owners, and other decision-makers need to have is specific goals and a set budget. The Culinary Institute of America reminds its students and alumni to make purchasing decisions based on immediate needs before upgrading fancier appointments. However, it also recommends they not cut corners and instead zero in on commercial grade equipment that can effectively streamline operations and improve scalability and menu optimization. Furthermore, they should apply industry data to daily operations and “slow down and do the boring work” to have preventative maintenance protocol to offset costly equipment breakdowns.
It is stating the obvious that what may be great for a white tablecloth restaurant or upscale lounge in equipment upgrades may not be particularly useful to fast casual places, and vice versa. Therefore, the responsibility falls on ownership and management to do the homework and prioritize their venue’s specific needs to select the specific investments that will pay off.
Plugging in to What Matters
TAGeX Brands CEO Neal Sherman believes restaurant and bar operators must consider the “fundamentals” first — foundational piece of equipment required for operation that need to be in place before owners and managers can evolve into more innovative additions, even in a time when their customers will have smaller dining-out budgets. “(Our clientele) is prioritizing things beyond automation, including equipment that will make them more efficient in their operations,” he observed, noting his firm primarily operates in the aftermarket, selling both new surplus and pre-owned equipment.
A member of the marketing and inside sales team at UNOX, also cites the current economy as a trigger that has made operators much more intentional about where and how they invest. Because of this, purchasing decisions are taking longer because operators are more focused on acquiring equipment that delivers measurable operational value. “We’ve seen increased interest in solutions that improve efficiency, reduce labor strain, maximize kitchen space, and create long-term return on investment. While they are being more cautious, they also understand that investing in the right equipment can help protect margins and improve operational stability in a challenging environment."
Along these lines, UNOX’s sales team always encourage operators to start with operational pain points instead of trends. Some operations struggle with labor consistency, while others struggle with throughput, space limitations, or menu flexibility. The UNOX representative noted that clients were asking sales team members a lot about speed technology, ventless solutions, automation, and compact equipment footprints. Labor-saving technology is also a huge conversation across nearly every segment. While these trends align with real operational needs such as simplifying execution and operating more efficiently, there are times where operators become overly focused on a trend without fully evaluating how it fits into their actual workflow.
“Although it’s easy to get excited about trends like automation or AI, if the technology doesn’t improve workflow, reduce friction, or create measurable operational gains, it may not be the right investment for that concept,” she said. “The most successful operators are usually the ones focused on practical efficiency and consistency rather than chasing every new trend. While automation sounds appealing, if it creates complexity or requires major operational changes, it may not solve the real issue. The best investments, therefore, solve real operational bottlenecks. Operators should evaluate equipment based on labor impact, throughput improvement, consistency, energy efficiency, ease of training, and long-term adaptability.”
Jon Jacobs, president of its U.S. operations of the SilverChef Group, believes that decision makers shopping around for equipment should have specific criteria involving size, brand, energy efficiency and, naturally, price. He observed that replacement costs have increased by 24 percent for refrigeration units and 21 percent for cooking and food-warming equipment. While the necessity of acquisition or replacement is daunting, the SilverChef Group operates on the notion that when the doors of one restaurant closes, a window into sound investment opportunities opens for others. For this reason, his company is working towards expanding hospitality operators’ access to flexible equipment financing through its ‘Rent-Try-Buy’ sales model. With the model in place, the company saw a 328 percent year-over-year growth in deployed financing, expanding from a two-state pilot to operating in 48 states.
“We understand the realities hospitality operators face because many of us have lived them,” explained Jacobs when discussing his team and partners. “Too many capable hospitality operators are held back not by vision or demand, but by rigid financing structures that don’t reflect how businesses actually operate. We’re enabling operators to grow smarter by accessing the equipment they need without compromising cash flow, (leading to) healthier, more resilient businesses.”
RestaurantEquipment.Bid, meanwhile, uses a model designed to expands access to quality used restaurant and bar equipment through a nationwide online auction hosted by the largest online marketplace for pre-owned restaurant equipment. “Closures...create an opportunity for independent restaurant owners and foodservice operators to access premium equipment at a fraction of the cost,” said Sherman. “Through RestaurantEquipment.Bid, we can extend the life of these assets while helping entrepreneurs across the country equip their kitchens with high-quality items.”
Size Matters in Decision Making
Moving on from this starting point, Sherman advises budget-conscious restaurant operators to prioritize multi-functional equipment. While automation is front and center, Jacobs stresses that not all automation is beneficial, especially when a business's size is factored in. He observes that many small restaurants are looking at connected cooking equipment, from smart ovens to smart grills, to monitor and get alerts on temperature and cooking time.
“Multi-functional equipment is often overlooked, but for many restaurants it enables greater menu flexibility, gives operators room to test and pivot their menus, matches customers’ needs in real time, and delivers consistent quality,” he explained. “For many early-stage restaurants, flexibility is key so that operators can pivot quickly to match demand without draining capital too quickly. Smart kitchen tools, meanwhile, need to be tailored to the needs of the kitchen staff and require training to ensure they are used and interpreted correctly, which adds to the time and money spent to see the full effects of this investment.”
Larger and more established restaurants, meanwhile, should prioritize automation and smart kitchen capabilities where possible, according to Jacobs. A major challenge for the larger operators is finding efficiencies that are effective across a larger workforce and several locations. In these circumstances, smart kitchen capabilities bring further automation, including energy optimization, automated Hazard Analysis and Critical Control Point and temperature monitoring, predictive maintenance sensors, and smart inventory and waste tracking, which help reduce blind spots and increase efficiency for staff and food delivery.
“(The challenges) have only grown as equipment has become more tech-heavy,” Jacobs continued. “A decade ago, an operator comparing two convection ovens was mostly weighing capacity, BTUs, and price. Today, he is also evaluating connectivity, software subscriptions, firmware update cycles, integration with existing kitchen systems, and what happens to the unit's smart features if the manufacturer sunsets support. The decision tree is longer, the spec sheets are denser, and the risk of buying something that looks impressive in a demo but does not serve the actual workflow is higher than it has ever been.”
According to Sherman, meanwhile, COVID-19’s impact on the supply chain challenges and tariffs have opened people's eyes and minds to the aftermarket. A number of his operator clients, including major national companies and those looking to open new locations or expand existing operations, realize they can get greater efficiency, automation, and cost savings by operating in the aftermarket. Furthermore, they are committed to six figure equipment investments when necessary.
“I think our industry is becoming ‘restaurant operator agnostic’ in the sense that even the restaurants with larger budgets...national chains and brands you would recognize...and small operators on Main Street, have to acknowledge all of those considerations,” he affirmed, adding that automation is also cited as a priority among operators to not only save on labor and time, but also improve food delivery, which is now imposing a greater cost burden on the operator and its customer. Furthermore, changing local and state regulations related to power requirements is also a concern, as some operators are moving from natural gas to costlier but more sustainable electric systems.
Getting “Used to It” vs. Going “In with the New"
“Automation is not just about flipping a switch and everything getting done with a machine,” Sherman continued. “Automation can (reduce time in) the preparation processes and other things related to it. However, (the demand is not) necessarily based on cutting jobs, but responding to a thinner labor supply market. Many restrictions have gone into effect that cuts down the people who are the lifeblood of the food industry (who are often immigrants)."
To accomplish more with fewer people, Sherman said that there are certain “mission-critical” pieces of equipment that restaurants use, whether it be cooking, or refrigeration, or storage that need to be in place. Because of this, independent restaurateurs, groups, and chains should do a lot of testing before they upgrade. “Rather than holistically changing out multi-unit operators with multiple equipment, (our customers) want to make sure that the product quality is there and that the pricing and margins are compelling,” he said. “However, I think that the preparation category of the restaurant space is the most critical, because (automation) can make the process more efficient and ensure consistency and quality.”
Sherman also recommends that operators evaluate is where and how the right technology can offset labor costs over time. Labor remains one of the largest line items on a restaurant P&L, and well-chosen equipment, whether that is a combi-oven that consolidates three stations into one, or back-of-house tech that reduces prep hours, can pay for itself in staffing efficiency. Technology that does not fit the menu or the team's workflow becomes an expensive distraction, not a cost saver.
Jacobs, meanwhile, believes the menu provides a good starting point for the selection process. “Equipment should be selected to execute the dishes a restaurant is known for, at the volume it serves them, rather than building a kitchen around capabilities the menu does not require,” he advised. “A pizzeria pushing 300 covers a night has very different equipment priorities than a tasting-menu concept doing 40, and the wrong fit on either end ties up capital that could be working harder elsewhere. Furthermore, essentials like refrigeration and food storage are crucial to keeping inventory fresh and safe to consume, which is key for a health-code-compliant business. Beyond refrigeration, operators need to assess which tools directly impact customer deliverables and ensure that core equipment is functioning and present before exploring trendy accessories.”
While Jacobs said used equipment is a great entry point for new restaurants and bars, buyers should focus on selecting the right used product and planning for longevity. This is why durable kitchen staples like ranges and ovens, prep surfaces, and sinks made from reliable (and low- or no-tech) stainless steel and cast iron require close inspections for signs of deterioration. Non-negotiables that should be bought new, however, are equipment water runs through, like coolers, refrigerators, and freezers as proper storage for perishables are essential for food safety and health-code compliance. Purchasers should also inquire about warranties on the equipment.
“In the next year, many restaurants will also begin prioritizing equipment upgrades and selecting equipment that has manageable maintenance needs,” he predicted. “Too many restaurants get caught off guard by equipment maintenance costs, and they need to be strategic when selecting new equipment and to anticipate these costs. With equipment financing, operators can access more flexible payment solutions that account for maintenance, alleviating the financial burden when equipment does experience wear and tear.”
Purchasing some types of used equipment can make perfect sense depending on the category and the operator’s budget. Simpler equipment with fewer electronic or automated components often holds up well over time if it has been maintained properly. On the other hand, those with a larger budget actively shopping for highly advanced cooking technology, smart equipment, or anything heavily tied to performance consistency and efficiency, purchasing new often provides better long-term value.
“New equipment typically offers stronger reliability, updated technology, warranty support, energy efficiency improvements, and better long-term operational performance,” UNOX’s representative affirmed. “Ultimately, operators should evaluate total cost of ownership rather than just upfront price. Sometimes the lower initial investment of used equipment can create higher maintenance, energy, or operational costs over time.”
The right shoes and gear may cost serious runners more on the front end but will have a longer life span and prevent costly problems down the road. Restauranteurs and bar owners should apply the same paradigm, even with rising costs and softening customer spending in the current economy. While it is a struggle to free up capital and maintain cash for emergency funding, product development, and marketing new launches, deferring maintenance and upgrades to their equipment to save money on the short term may lead to larger revenue losses when equipment fails and leaves operators unprepared.
“While purchasing equipment can drain capital when bought outright, it’s also essential to running a restaurant,” Jacobs affirmed. “To balance these two needs and keep doors open, restaurant operators are increasingly turning to equipment financing to get the best of both worlds.”