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Equipping your restaurant with commercial kitchen equipment can be an overwhelming process since it requires a lot of research and consideration. Additionally, it also requires some budgeting so that you will be able to acquire the best and most cost-effective pieces of equipment for your restaurant.

So, should you buy or lease restaurant equipment? What are the benefits of buying vs. leasing restaurant equipment? Although there are a lot of contradictory opinions about buying and leasing commercial kitchen equipment, it is essential to know that each option has its own advantages.

Pieces of equipment that constantly evolve must be replaced to avoid using old machinery. That is why in some cases leasing restaurant equipment would be much better than purchasing. While long-lasting equipment can either be rented or purchased depending on your budget.

However, in some cases, lease agreements give you the chance to buy the equipment once the lease period ends, which can be beneficial. If you are wondering whether you should lease or buy your restaurant equipment, then you are in the right place.

What Is Leasing?

Leasing involves a lessor and a lessee. The lessor is the company or individual who allows his piece of equipment to be let out to the lessee. At the same time, the lessee will have to pay a certain amount for leasing the equipment for a certain period of time.

The lease agreement should include the products, the terms & conditions, as well as the duration of the lease. Prior to the start of the lease, both the lessee and the lessor should sign the agreement. There are a lot of people who are getting confused about leasing vs. renting restaurant equipment.

You have to understand that renting only permits you to use the equipment based on your monthly payment. On the other hand, leasing permits you to make a large payment once the lease period ends and purchase the equipment.

Why Should You Lease Commercial Kitchen Equipment?

If you are a restaurant owner, then most probably, you might be wondering whether you should rent, lease, or purchase your restaurant equipment. Leasing is now widely available, which is why restaurant owners have better options.

Aside from allowing you to use, service, and upgrade the equipment based on the agreement, leasing commercial kitchen equipment also allows you to purchase the equipment once the term ends. Leasing has two major advantages.

Less Expense

Compared to purchasing new equipment, the upfront costs for leasing are much lesser. As a result, you will have more capital. Additionally, leasing allows you to upgrade your equipment every few years at affordable prices.

Lease to Own

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With lease agreements, you are given the option to purchase the equipment for a larger payment. That is why this is a practical option for restaurant owners who are considering leasing or buying restaurant equipment upfront. With this option, you are given the chance to feel the equipment before committing to it. For business owners who want to have some changes, they don’t have to buy new ones, instead, they can choose to have an upgrade.

What Are the Advantages of Leasing and Renting Restaurant Equipment?

Renting and leasing commercial kitchen equipment has a lot of advantages. One of its greatest advantages is that it allows restaurant owners to save up on their capital so they can manage their operating expenses. The following are some of the major advantages of renting and leasing restaurant equipment:

Less Upfront Costs

Whether you choose the leasing or renting option, you can save a large amount of money on your initial investment costs. Keep in mind that during the initial period of your business, you will need a consistent cash flow for the various expenses and the money you’ve saved from leasing can be a big help.

Upgrades and Maintenance

Lease agreements often include free repairs, servicing, and maintenance for those pieces of equipment that are included in the lease. This means that you don’t have to worry about your maintenance costs, which are part of your monthly operating costs. Most often, lease contracts also permit you to upgrade to new ones after your current contract ends.

Use of New Equipment

Sometimes lease agreements allow you to use new and unused equipment. This is advantageous compared to purchasing used equipment since most refurbished equipment does not have any service guarantees and warranties. While leases provide you with new machines and authentic service options that come with the agreement.

Easy Access to Financing

If you are planning to purchase new equipment, then most probably, it will take some time before your loan can be approved by banks and other financial institutions. On the other hand, lease companies are quick to respond and provide you with the services you need as opposed to financial institutions. As a result, you can quickly obtain a range of equipment so you can start your business immediately.

Things to Consider Prior to Leasing or Renting Restaurant Equipment

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In case you are planning to open a restaurant and want to know how to lease equipment, then the following are some of the things you need to consider.

Monthly Expenses

Leasing is a perfect option if you want to disperse your expenses for a long period of time. However, the overall total you need to pay will be different from a large amount of money you pay upfront to purchase the equipment. Since this is not practical for all businesses, then you need to budget your monthly expenses to cover your lease costs.

Larger Payments

Once the lease period ends, you have the option to make larger payments in case you are interested in buying the equipment. Since this is larger than your monthly payments, you need to save extra money so that you can purchase the equipment you leased.

Terms of Contract

Be sure to read all the details of the agreement and lease contract carefully. It is important that you know the consequences in case you decide to break the lease early, particularly if it has some charges. When leasing kitchen equipment, you should consider all the terms in the contract carefully.

Rates of Interest

Take note that lease companies offer higher interest rates than other financial institutions. That is why startups should make thorough research when it comes to restaurant equipment leasing. There should also be financial planning since the rates of interest can have a huge impact on some business owners.


The core of every restaurant is the food service equipment. That is why at the start of operations, you should focus more on procuring quality equipment. With a wide range of equipment and different payment options, business owners have a lot of alternatives. Whether you choose to lease, rent, or buy, it is important to ensure the quality of the equipment you want to procure.

Mountain Sales & Services offer food service equipment leasing. There is a variety of equipment that you can choose from. For more details, you may call us at 303-289-5558 /800-847-2557 or send us an email at