As the search for million-pound projects continues in earnest during the first signs of those ever talked about grass roots within the UK economy, more and more of the large-scale kitchen houses are beginning to fight over an ever more competitive market place. No doubt once the resurgence is kick-started the contracts will trickle through and the foodservice equipment services market will cut margins to take on the work. But is this really the path to success?

The commercial kitchen design and installation industry is, in my opinion, missing a massive business opportunity. It may not be the most profitable, it may not be the least problematic, but it is certainly the most abundant at times of growth; the business start-up. An order of £20,000 may appear insignificant to any company designing commercial kitchens, installing foodservice equipment or supplying commercial kitchen equipment, but, the margins can be better and the future upsides are huge.

Let us say on average 90% of new restaurants fail, or in a more optimistic light, one in ten succeeds. Any foodservice equipment specialist that works on 50 of these small hotel kitchen or restaurant kitchen projects can potentially look forward to 5 loyal clients per year offering them future business.

The work involved is far greater. Kitchen equipment supply and installation becomes secondary to the rerouting of electrics, consultations with planning officers, enabling works, Whiterock walling and Altro floors. The payment is higher risk, there are no Cap Ex budgets in the start-up restaurant game. But what there is, is the rarest of opportunities, that of customer loyalty from the outset. I look back on what has made my father great over the years, and it is his treatment of his clients fairly and honestly. That is why people return to him, and why he no longer seeks new business. (Incidentally your annual marketing budget can be nothing, just ask him!) This is the climate where lifetime relationships are forged, between the aspiring restaurateur that sees his window of opportunity and the one foodservice equipment specialist willing to give him the time of day and an opportunity to offer experienced advise on the best catering equipment choices for his needs in return for a paltry £20-£30,000.

These people don’t need the top of the line Rationale Combi oven 20 grid, what they need is “know how” on where to save money and where to maximise their budget. Who to speak to, to get a change of use planning application through, the best way to run the electrics, whether a small partition wall would organise the space, how many covers they need to accommodate to meet their overheads. It is that information that gets you long-term business, not the discount you can offer the latest garland range at. Initially you’ll be working harder, dealing with more problems from your clients and making less cash, but your margins are better and the long-term growth opportunities are well worth it. And guess what chaps there’s plenty of that business going round over the next few years. Foodservice Equipment services and commercial kitchen solutions, for the budding restaurateur anyway, have to be in the form of a One Stop Shop.

Author Bio: Rees Associates has an unrivalled reputation in Foodservice Equipment Supply and Commercial Kitchen Equipment, as primary UK installers for some of the world’s largest catering equipment manufacturers.

Category: Business
Keywords: foodservice equipment supply, Rees Associates, Commercial kitchen equipment