Restaurant Equipment Recovery – The ins & outs of recovering everything, including the kitchen sink
Faced with a health and financial crisis unlike any seen in recent years, America is dealing with immediate challenges to the daily conduct of lives and businesses. But as this new normal sets in, we will see issues arise in new areas. As the dust settles, we will see an increased need for restaurant equipment recovery and effective capital asset remarketing of those items. Learn more about what is contributing to these needs and how national repossession companies will assist in this reclaiming and reallocation of asset value.
Restaurant Reality 2020
From pizza shops to creperies, sub joints and fine dining establishments, independent restaurants make up two thirds of the American dining out landscape. These approximately 500,000 establishments, have been digging deep and getting creative to keep their doors open as the COVID-19 crisis has gradually spread across the country from the more populous coastal regions to the nation’s interior. For some this has meant temporary shutdowns, for others the expansion of takeout and delivery service. Preliminary research indicates that Americans are working to support their local restauranteurs, with a 12% uptick in first-time orders and 66% of consumers indicating they have placed some kind of takeout order in the 2 weeks preceding the survey.
Restaurant Equipment Leasing Realities
Still, many estimates indicate that before the coronavirus pandemic is under control, fully 75% of these restaurants may be forced to permanently shutter their businesses. With the majority of the United States facing some type of restriction of movements and recommendations for social distancing, these organizations are already struggling despite the support of consumers and government actions to provide immediate support and relief.
Opening a new restaurant is a costly endeavor, with estimates ranging from $150-$500/sq. ft. depending upon location. Kitchen and bar equipment costs alone range from $40,000 on the low end to over $200,000. To be able to open a restaurant, owners must manage cashflow and their reserves, which means that many entrepreneurs and restauranteurs use equipment leasing as an approach to open and operate their business.
Restaurant Equipment Leasing Company Impacts
With an estimated 39% of business equipment being leased, leasing agencies and lenders will now be facing challenges of their own. For these companies, the restaurant equipment spread across the country represents millions of dollars of unrealized value. The recovery of these assets becomes vital to their ongoing operation and success. Recovery of these assets will also allow these leasing companies to assist new restaurant ventures as the economy recovers, thanks to the capital that such asset recovery opportunities yield.
Restaurant Equipment Recovery Challenges
Unfortunately, the recovery of restaurant equipment from establishments that are being forced to close their doors may not be a simple process. Leased restaurant equipment ranges from larger walk-in refrigerators and freezers to industrial stoves, mixers, dishwashers and more. Retrieval and repossession of these items requires massive effort and expertise.
The know-how to efficiently remove leased restaurant equipment and safely transport it can make a significant difference in the recoverable value of the items. The better the condition of these items after they have been retrieved, the greater the ability to effectively remarket the items and recoup the total asset value.
National Repossession Company Advantages
National repossession companies present leasing companies and other financiers with the best option for restaurant equipment recovery. These organizations have access to the right network of individuals to get the job done. From efficient disassembly and uninstall, to appropriate cataloging and tracking of all component parts and items, these organizations have the tools available that smaller local players may not.
Possibly even more important, the right national repossession company will provide leasing agencies and financial institutions with the right resources for quality capital asset remarketing. Moving recovered restaurant equipment into a specialized auction environment puts the items in front of the right audience and can help to ensure that the best prices are captured on the repossessed restaurant equipment.
Any leasing company or financial institution facing the prospect in need of restaurant equipment recovery should begin contacting qualified national repossession companies today. Learn what services they can provide and how they can assist in the capital asset remarketing that will be needed to maximize the value of their recovered restaurant equipment.