The next step in creating your restaurant business plan financials is to assess the cost of equipment. This is a fairly straightforward spreadsheet that list out all the possible equipment your restaurant is likely to need and all you have to do is determine the quantity of each if any and then apply the cost.
Totaling this up will give you the total expected expenditure on your restaurant equipment. One important note is on the right side where you can determine whether or not you’ll be leasing this equipment or purchasing outright. The big advantage of leasing is that you don’t need a down payment beyond typically the first month’s payment for the lease and that you can save yourself a considerable cash expenditure by leasing instead of buying.
Leasing rates vary it will be somewhat dependent on your credit and the deal you can strike and also whether or not you intend to own the equipment at the end of the lease. In general though it is very worthwhile to at least explore the option of equipment leasing and see whether or not it makes sense. In many cases it will make more sense than buying equipment.
As another side note, you should definitely look into the option of used equipment.
The restaurant industry is flooded with used restaurant equipment and depending on the condition you can save yourself 50% or more versus the cost of buying new. Since restaurant grade equipment is made for hard use and long life there is no disadvantage to buying used especially when you’re just starting out. The only time it might not be advisable is if you are developing a restaurant concept with the kitchen visible from the dining area where you want everything to look shiny and new.
For most applications however used equipment will work just fine and an even better combination is getting used equipment within equipment lease to lower your startup costs as far down as they can possibly go.