Can Catering Companies Earn Money From Equipment Rentals?

Increase earnings for your catering business by offering equipment rentals.

If you are experiencing a slump in sales, you could earn some extra cash for your catering company by renting out equipment when not in use. Before you rent out any equipment, develop a plan on how much customers should pay for the use of the equipment and your rental terms. Choose the type of catering equipment to rent out based on customer feedback.

Types

Talk to your established customers about the type of equipment they would be interested in renting if you began offering that service. Types of equipment may include chairs, tents and linens to set up their party. If they are making their own dishes for food service, they may be interested in renting serving trays, spoons, heat lamps and platters. Customers looking to prepare and serve large amounts of food may want to rent out blenders, steamers, portable sinks, warming cabinets, grills, griddles and fryers.

Prices

Compare rental prices offered by other local equipment rental companies. Keep your prices competitive and ensure that they are at low enough to make it worthwhile for customers to rent instead of buying the equipment. Set a daily rental fee for each item, along with a late fee you can charge if you do not receive the equipment back within the agreed timeframe. Avoid renting out equipment you need for an upcoming event too close to the date.

Terms

Set up a contract that outlines your rental terms. Each equipment piece rented out should be placed on an itemized list, along with the rental fee. Ask for a deposit to protect your company in case the item is not returned or given back in a damaged state. The deposit can be returned once you receive the items back. To safeguard your catering company, you may want to require a credit card on file to prevent theft.

Potential

The way you market your equipment rentals depends on how much time and money you want to invest. If you only have a small amount of equipment available, only offer the services to established customers. In the case of higher demand, you could purchase more equipment pieces to offer along with catering services. You’ll need storage space to keep the equipment when not in use. Calculate overhead of buying the equipment, marketing and storage to decide if the venture will be profitable.

References

• Food Service Warehouse: Starting a Home Catering Business
• Wedding LDS: What You Need to Know About Renting Wedding Party Equipment

Resources

• Premier Party Rentals: Catering Equipment