Delays in replacing equipment eats into operators profits

Delays in replacing equipment eats into operators profits

The decision on when to replace a piece of catering equipment seems a simple one to most operators, when the equipment fails completely and repair is no longer cost effective. A new study by asset management consultants has looked into the lifecycle and maintenance costs of catering equipment and advised that the above process for replacing items only when they have failed completely is flawed and costing operators far more money in the long run. In the study it was found that the majority of commercial catering equipment that had service call outs placed for breakdowns were repaired when it was more economical to replace, this is partially due to the downtime whilst waiting for a replacement and the decision for a business to pay out of a repairs budget rather than getting authorisation to make a capital investment. As a study example an old energy deficient commercial refrigerator had repairs of £800 authorised, surely not the most cost effective long term option when a new energy efficient model could have been purchased for around £1200 plus VAT with a manufacturer’s warranty. It would also mean significant savings on energy bills due to efficient design on new refrigeration equipment.