Leasing entails an agreement where a person rents an item for a short period and pays for the item with or without the option to buy after the agreed period is exhausted. Leasing is an alternative option that works in the absence of funds to buy the equipment. Therefore, leasing gives you the chance to acquire that equipment at that time without necessarily exceeding your budget. This article looks at the benefits and drawbacks of leasing restaurant equipment while highlighting other alternatives to hiring restaurant equipment.

Benefits of hiring restaurant equipment

There are various benefits to leasing kitchen equipment for both new and already established restaurants. They include:

  1. Access to mandatory Equipment at affordable rates: Leasing allows you to acquire the required equipment to start a restaurant without worrying about breaking your bank. The store gives you a period whereby payment is required monthly till the time frame elapses. At the end of the agreement, an option to buy may be triggered depending on the terms of the agreement.
  2. Leasing is better for short-term businesses: For an upcoming restaurant, leasing allows for more affordable light-duty equipment till the business grows to have an established customer base. At the end of a lease term, there is an option to return the equipment or extend the lease term further.
  3. Option to Buy on Lease end: Several stores that offer leasing services include the option to buy the item. This is best for restaurants that do not have the required capital to buy an item initially, as they can save up to buy them later.

Drawbacks of leasing restaurant equipment

Regardless of the benefits that leasing kitchen equipment offers, there are several downsides to leasing restaurant equipment. They include:

  1. No chance to develop Equity: Equity is the money left on an item after deducting the money owed from it. Leased items do not allow one to develop Equity on the item. And the money earned from the end of a lease contract is not usually enough to purchase new items.
  2. Inability to cover all costs: Lease options are restricted to some items due to the risks involved. Startup restaurants should not see leasing as a permanent solution to solving all their wants and minimizing costs because it is not. Buying is the best option for the long run.
  3. Interest rates: Although it is more suitable to lease items in the absence of adequate funds, buying an item requires no interest other than leasing, while it may also offer discounts on the item.
  4. Termination Fees: It is important to note the termination date of a lease contract. If a leased item has served its purpose before the end of the lease contract, a fee is required if you do not intend to see your contract through.


Leasing offers starting-up restaurants a cheaper means to acquire instruments for the short term. Leasing, however, may prove to be more expensive in the long run. Hence, the leasing option should only be used on items you need and can not afford but intend to buy in the end and not items you want to acquire permanently. This article has listed some pros and cons of leasing restaurant kitchen equipment and how they may affect you.