A Guide to Restaurant Equipment Budgeting
Post Date: 2018-11-30
When starting a business, financial planning is key and the bedrock of profitability. Running a restaurant is no exception as fixed costs such as purchasing new equipment and variable costs including hotel supplies and employee wages will be incurred.
Smart entrepreneurs anticipate their costs and plan for them. It is only with good financial planning can a business prosper, leading to the importance of setting aside a proper budget for your restaurant equipment.
Purchasing commercial catering equipment in Singapore is a significant investment for your venture, therefore it is imperative that it adds value to your operations and, like any other investment, contribute to the profitability of your business. To ensure that you make the right decisions in selecting and budgeting for your restaurant equipment, here are a few things you must check before anything else.
What You Want But Not What You Need
While asking yourself what you need sounds slightly silly, it is extremely important to ascertain that your list of restaurant equipment comprises of what you need. Whether you are new to the business or a seasoned entrepreneur, you should still plan out your menu first and use it to determine what restaurant equipment you need. This way, your menu dictates the equipment you need and you will end up getting what is required.
Planning the menu first also helps you to estimate the output as well as how frequently you’ll be using each piece of equipment, allowing you to decide the necessity and size of equipment you should purchase. If possible, run your menu by reputable commercial kitchen equipment suppliers in Singapore and pick their brains, getting their thoughts and opinions. This will give you useful insights on what’s absolutely necessary, the recommended sizes and what you may need to hire from time to time.
Check the Warranties
Before you invest all your hard-earned cash in restaurant equipment, do check on its warranty. Often, restaurant equipment that comes without warranty or bad warranties are deceivingly cheap, however if you fall into this trap, it will cost you dearly in the long run. Not having a warranty not only means unnecessary repair costs whenever equipment breaks down, but increased downtime as well, adding to lost revenue.
When budgeting for major equipment, it is safer to engage the top Singapore restaurant equipment suppliers regarding the type of warranties and service programs the company offers. Be sure to make detailed inquiries and remember to factor in all aspects when comparing prices. The extra dollars that you spend on buying quality equipment can help you save thousands in repair costs.
Is it up to standard?
One crucial thing to check before purchasing restaurant equipment in Singapore is if they meet all the safety and hygiene codes as pertaining to your operations. Most certified commercial kitchen equipment suppliers in Singapore are conversant with the codes so you shouldn’t hesitate to ask them if anything seems unclear. As the owner of the business, you need to be meticulous about the codes and their flawless implementation, as a violation of the codes could lead to hefty fines or even a suspension of your operating license.
Factoring in Utilities
The electricity and water bills contribute immensely to the overheads of a restaurant, but there is a way you can cut down on these costs when purchasing your restaurant equipment. With the current technological revolution, commercial kitchen equipment suppliers in Singapore have an array of smart technologies available for you to incorporate into your restaurant kitchen. These smart technologies often work with great precision and efficiency, helping you save on utilities.
Beyond that, you may also want versatile equipment, such as ovens that can switch between electricity and gas without any complicated adjustment. The bottom line is to get equipment that helps you in reducing the overheads and has minimal downtime. Conducting these checks when budgeting for your restaurant equipment can help you make the best investment and cut down on long-term costs.