If you are establishing a new catering business, one of the most essential factors proprietors need to decide on is whether they should buy or rent catering equipment. That being said, there are advantages and disadvantages to both options. Owners will need to weigh these two options depending on the scope and size of the business as well as the available budget.
The available budget is a key element to deciding whether to buy or rent catering equipment. It will determine what you can afford and for how long. For example, start-up businesses with limited capital are advised to buy only the bare essentials and choose to rent the rest.
Another important factor is determining how often and for how long you will be using that particular type of equipment. Renting is a good way to get access to current or top-of-the-line commercial kitchen equipment opposed to buying catering equipment which will help you save cash in the long run. However, the amount of time it takes for you to see a return on investment largely depends on how frequently the equipment is being used.
The size of your catering business and your target market also plays an important role. For instance, if you expect to cater for events with 500 guests on a regular basis then you will need to supply dishes, glasses, linens and the like to accommodate the number of guests. On the other hand, if it is a start-up business in the process of collecting clients, the chances of catering for large events is slim. It may be more practical to stick with buying the essentials and renting the rest.
Another issue is about the availability of the items. Weeks leading up to the Christmas holidays are often the best times for a catering business as more parties and events are planned during and around these times. However, this equates to a greater demand for services and equipment. If you decide to rent out specific catering equipment during these peak times, the chances of being able to rent out particular pieces of equipment decreases as the demand increases. You may be forced to turn away potential clients if you cannot find a supplier for certain items and equipment you need.
The obvious advantage that exists when choosing to purchase your own catering equipment is the peace of mind not having to worry about the unavailability of important items you need during important events.