{"id":13899,"date":"2022-07-19T09:30:43","date_gmt":"2022-07-19T13:30:43","guid":{"rendered":"https:\/\/www.wasserstrom.com\/blog\/?p=13899"},"modified":"2022-08-03T07:04:20","modified_gmt":"2022-08-03T11:04:20","slug":"commercial-kitchen-equipment-total-cost-of-ownership","status":"publish","type":"post","link":"https:\/\/www.wasserstrom.com\/blog\/2022\/07\/19\/commercial-kitchen-equipment-total-cost-of-ownership\/","title":{"rendered":"Kitchen Supply TCO: Is the Lowest Price Really the Lowest Cost?"},"content":{"rendered":"\n

When purchasing a piece of professional kitchen equipment, the actual cost extends far beyond its price tag. This is where the total cost of ownership (TCO) comes in. TCO is a broader and more holistic approach towards the overall health of your financials and will change the way you purchase equipment for the better.<\/p>\n\n\n\n

This article shares a brief overview on how analyzing a product’s total cost of ownership will save you money in the long run, including examples using two common items: spoodles and steam table pans. We\u2019ll also direct you to online tools that will make TCO analysis easier in the future and help strengthen the financial health of your restaurant.<\/p>\n\n\n\n

\"The<\/a>
The Mirage Countertop Pro Induction Range by Vollrath<\/a> is the perfect TCO investment for use in buffets, cooking demonstrations, and catered events. It\u2019s extremely energy efficient to save you money, offers culinary control with myriad power levels settings, and has a space-saving design that is easy to transport.<\/figcaption><\/figure>\n\n\n\n

What Is TCO?<\/h2>\n\n\n\n

Purchasing commercial kitchen equipment requires a significant financial investment. Understandably, it is tempting to base your decision off the initial intimidating price tag. In contrast, total cost of ownership considers the price tag of an item in conjunction with the item\u2019s operational costs throughout its lifespan. In the foodservice industry, judging a products value solely off an item\u2019s purchase price does not accurately represent the true financial burden, long-term value, or future associated costs.<\/p>\n\n\n\n

A great example of where TCO comes into play is buying a car. When purchasing a vehicle, so much more goes into cost beyond the initial price tag. Repairs, car insurance, fuel economy, and maintenance costs must also be factored in. Foodservice equipment should be analyzed in the same fashion to best predict any financial burden or additional costs that may present in the future.<\/p>\n\n\n\n

\"The<\/a>
The Miramar Fry Pan<\/a> by Vollrath<\/a> is made with durable 3-ply construction for high-volume usage. Even heat distribution and a unique design allows you to save time by cooking and serving from the same unit.  <\/figcaption><\/figure>\n\n\n\n

Factors That Affect the Total Cost of Ownership (TCO)<\/h3>\n\n\n\n

From the purchase price of an item to its end-of-life disposal costs, many variables come into play when analyzing the TCO of your commercial foodservice equipment. Here are several considerations to keep in mind when you want the best value for your money.<\/p>\n\n\n\n

Purchase Price<\/h4>\n\n\n\n

Understanding true TCO always includes the initial purchase price. However, the price tag is just the starting point in the expenses that can be incurred over the lifecycle of your equipment. Selecting equipment based on purchase price alone undermines your future financials.<\/p>\n\n\n\n

Replacement Frequency<\/h4>\n\n\n\n

How long is the expected operating life of the item?<\/p>\n\n\n\n

Energy & Water Savings<\/h4>\n\n\n\n

Operating costs are affected by local gas and electricity prices. Additionally, water is becoming a more expensive resource. Does this item offer any savings in the way it uses energy and water? Is your equipment energy efficient?<\/p>\n\n\n\n

Maintenance & Repair<\/h4>\n\n\n\n

This includes preventative maintenance as well as the cost of replacement parts and labor. The amount of maintenance and repair includes many variables such as the quality of an item\u2019s construction and whether it is used in a high-volume capacity. Maintenance also includes the time it takes your staff to perform daily tasks to keep your equipment running at its best. It\u2019s also important to consider a products warranty. It shouldn\u2019t be a deal breaker, however it\u2019s a good idea to factor it in.<\/p>\n\n\n\n

\"The
The Lidsaver3 2-Slot Lid Dispenser by Vollrath<\/a> mitigates risk and saves you money. The Lidsaver3 design reduces bacteria by 98%, while dispensing the correct number of lids for less waste.<\/figcaption><\/figure>\n\n\n\n

Labor Savings & Productivity<\/h4>\n\n\n\n

Is this piece of equipment easy for your employees to use? Will it increase productivity in your kitchen, saving time and reducing labor costs?<\/p>\n\n\n\n

Food Waste <\/h4>\n\n\n\n

Equipment can either help you save food or be a potential food waster, thereby driving up expenses.<\/p>\n\n\n\n

Risk Mitigation<\/h4>\n\n\n\n

Is the product listed as NSF? Is it easy to clean? The easier a product is to clean, the more likely your employees will take the time to do so. This lowers the risk of foodborne illness.<\/p>\n\n\n\n

Price of Accessories <\/h4>\n\n\n\n

Some equipment may seem low cost, when they actually require expensive accessories. It\u2019s important to consider whether the equipment requires accessories, how expensive they are, and how often you will have to purchase or replace them.<\/p>\n\n\n\n

Setup\/Installation Costs <\/h4>\n\n\n\n

Depending on who you purchase from, the cost of labor to receive, setup, and install the equipment can vary dramatically. And if the product requires training, you will want to ask if it comes at an additional cost or is included.<\/p>\n\n\n\n

Disposal Cost<\/h4>\n\n\n\n

Do you have a plan for the removal and disposal of your largest and heaviest pieces of equipment at the end of its lifecycle? When purchasing new equipment, always ask if the price includes hauling off the old piece.<\/p>\n\n\n\n

\"Cayenne<\/a>
Cayenne countertop warmers by Vollrath<\/a> lower your energy bills and create less food waste with superior insulation and the most efficient heat transfer possible.<\/figcaption><\/figure>\n\n\n\n

Online Resources<\/h2>\n\n\n\n

There are many factors to consider when analyzing TCO. Luckily, there is help available. The North American Association of Food Equipment Manufacturers (NAFEM) created a Life Cycle\/Total Cost of Ownership tool<\/a> for just this purpose. These Excel-based calculators help restaurant owners establish the Total Cost of Ownership for their purchases.<\/p>\n\n\n\n

Similarly, California Energy Wise<\/a> offers a calculator for virtually every piece of major equipment in your kitchen. This tool calculates potential energy, water, and monetary savings both annually and over its lifetime.<\/p>\n\n\n\n

Case Study: Vollrath TCO<\/h2>\n\n\n\n

In this section, we will look closer at two common purchases: spoodles and steam pans. These simple examples illustrate how poorly manufactured, economy items create chain-reactive problems and ultimately run a higher price tag than high-quality commercial kitchen equipment.<\/p>\n\n\n\n

Spoodles<\/h3>\n\n\n\n

Half serving spoon, half ladle, a spoodle looks simple enough that even the cheapest version will do. However, when taking a closer look into the design details, it becomes clearer that not all spoodles are created equally.<\/p>\n\n\n\n

\"Spoodle<\/a>
Color-Coded, Heavy-Duty Spoodle by Vollrath<\/a><\/figcaption><\/figure>\n\n\n\n

Take this 2-ounce heavy-duty, color-coded, solid spoodle <\/a>as an example. We can see how Vollrath added value to the simple spoodle by way of their design and manufacturing details. This serves as a wonderful example of how investing in innovation, despite a higher price tag, can mitigate food safety risks before they become a costly problem.<\/p>\n\n\n\n