Commercial Kitchen Equipment: What to Buy New, Used or Lease

Commercial kitchen equipment is easiest to buy well when you decide by what each machine does for the kitchen, not by its price. A walk-in fridge that fails on a Saturday and a stainless prep table that is scratched are very different risks, and they deserve different answers on new, used or leased.

This guide gives a decision rule by category, the checks that apply to all of them, and a short list of mistakes to avoid. Prices are left out on purpose, because they vary too much by country and year to be useful.

How should you decide between new, used and lease?

Ask three questions of each item: what happens if it fails, how fast does it change, and does it have to meet a rule. The answers sort most of the kitchen into three groups.

This is a thinking tool, not a law. It stops you buying everything one way because one salesperson was persuasive.

What is best bought new?

Buy new where hygiene, warranty and running costs matter most. That usually means refrigeration, dishwashing and anything that runs all day.

• Refrigeration and freezers. They run around the clock, so energy use adds up, and a failure can mean lost stock and a closed kitchen. A new unit comes with a warranty and known performance.
• Dishwashers. Local rules may specify what is acceptable. One council guide in Victoria, Australia, requires at least a double bowl sink, or a single bowl plus a commercial dishwasher with a thermostat-controlled sanitising cycle, and says domestic dishwashers are generally unsuitable.
• Gas cooking equipment. Installation matters as much as the machine. UK Health and Safety Executive guidance says gas appliances must be fitted by a registered gas engineer, who needs the appliance's air inlet requirements.

Energy use is a fair argument for new. The ENERGY STAR programme says a kitchen using a suite of its certified equipment could save about 350 MMBtu a year, roughly US$4,000. The page is undated and the figure is a programme estimate, so do your own sums: hours of use, local utility prices and the price gap between models.

What is fine to buy used?

Buy used where the item is simple, durable and has no moving parts to worry about. The classic list is stainless prep tables, shelving, racks, sinks, trolleys and some small tools.

Used can also make sense for items you may replace once the concept settles, such as a second fryer for a menu you are still testing. Before you commit:

1. Check that it still meets local certification rules.
2. Look for documentation: model plate, manuals, service history.
3. Test it under load, not just switched on.
4. Confirm it fits your utilities and ventilation.
5. Ask who removes it, and what happens if it fails in the first month.

Be cautious with anything built into the building, such as extraction hoods and ductwork. They are designed for one site's air flows and duct runs, so a used hood from another kitchen may not suit yours. Brief a ventilation engineer first, as set out in our commercial kitchen requirements checklist.

When does leasing make sense?

Leasing makes sense when a machine is costly, you need your cash for the opening, and you can still pay in a weak month. Leasing swaps a large upfront payment for fixed monthly ones. The trade-off is that you commit to the payments whatever sales do.

Use the same test as for rent: reduce your sales plan by 30%, add all fixed payments, and see whether the kitchen still covers its costs. Our guide on how to choose a restaurant location shows the method.

Questions to put to the lessor, with your adviser:

• What is the total cost over the whole term, not the monthly figure?
• Who pays for repairs, servicing and breakdown cover?
• What happens at the end: return, renew or buy?
• What is the cost of leaving early?
• Who is responsible for installation, removal and insurance?

This is general information, not legal or tax advice. Lease, tax and accounting treatment differ by country. For example, under IFRS 16 many lessees must record a right-of-use asset and a lease liability for leases of more than 12 months, unless the asset is of low value. Check how that applies to you with a qualified adviser.

Loans are another route. The US Small Business Administration, for one, says its guaranteed loans can be used for most business purposes, including long-term fixed assets such as machinery and equipment, though some programmes restrict use. Our guide on how to fund a restaurant covers the wider options.

Every machine you buy is a decision about a Saturday night three years from now.

What must you check before ordering anything?

Check three things for every item, whatever its route: certification, utilities and layout. Skipping any of them is the most common and most expensive mistake.

1. Certification. Some food codes treat equipment certified by an accredited sanitation programme as compliant. Delaware's food code does so and expects specification sheets as proof. Other countries use different marks, so ask your local authority what they accept.
2. Utilities. Does the building have the electrical phase, gas capacity, water pressure and drainage the item needs? An oven you cannot connect is an expensive ornament.
3. Layout and access. Will it fit through the door, sit under the hood and leave room for cleaning and service? Draw it on the plan before you buy it.

Then match the list to your menu. A kitchen that sells ten dishes does not need the equipment of one that sells forty. Walk each dish from delivery to plate on paper and note every machine it touches. Anything that no dish needs can wait, and anything that every dish needs deserves your best money.

Which purchasing habits cost the most?

Four habits account for most of the regret.

• Buying before the layout is fixed. Finish the plan, then buy against it.
• Buying the machine and forgetting the install. Get quotes for delivery, connection and ventilation up front.
• Comparing monthly payments rather than total cost. Add every payment, fee and end-of-term cost over the full term.
• Over-buying for a menu that will change. Start with the items every dish needs and add the rest after a few weeks of trading.

Key takeaways

• Decide by role: what happens if the item fails, how fast it changes and whether it must meet a rule.
• Buy new for refrigeration, dishwashing and all-day equipment. Buy used for simple stainless. Treat leasing as a fixed commitment and stress-test the payments.
• Check certification, utilities and layout for every item before you order.
• Be careful with used equipment built into the building, such as hoods and ducts.
• Compare total cost over the full term, including installation, service and end-of-term terms.