There’s always a significant amount of cost involved whenever you buy a new piece of restaurant equipment.  Those costs only continue as that equipment ages in your restaurant – from energy use to repairs, the consequences of a new equipment purchase will be around for a long time after you’ve written that first check.

Of course, restaurant equipment makes you money as well.  Without that fryer or reach-in refrigerator or griddle, you wouldn’t be able to prepare your product for your customers.  But understanding the total cost of a piece of equipment over its lifespan is a factor that has been ignored all too often in the food service industry for years.

Many chains have started doing Total Cost Of Ownership analyses for equipment because they buy large numbers of the same type of equipment all at once.  A faulty or inefficient piece of equipment can mean thousands of dollars in extra expenses for the chain over the lifespan of the piece, and conducting a cost analysis beforehand helps avoid problems down the road.

By and large, most independent operators do not undertake the complicated task of calculating total cost – usually because the information or the know-how necessary to make an accurate calculation isn’t available.

That doesn’t mean independents and smaller chains can’t benefit from a cost analysis before they buy new restaurant equipment.  Here’s a quick guide to help you get started on your own cost analysis before you buy your next piece of equipment.