Used Food Service Equipment - Market size
Information on the market size for used food service equipment in the U.S. was not available in the public domain. Below is an overview of the information that was available.
Food service equipment market size
- The food service equipment market size in the United States was estimated at US$ 7.84 billion in 2016.
- In 2018, the global food service equipment market size was valued at US$ 31.64 billion.
- Key players in the market include AB Electrolux, Ali Group, ITW, Middleby Corporation, Dover Corporation, and Manitowoc Company Inc.
- North America leads the market growth for this industry because of the high product penetration and an increasing need to have the most recent technology.
- The demand for products is influenced by the purchasing behavior of restaurant operators who prefer to buy new equipment rather than repair and maintain existing instruments. Furthermore, it is influenced by "the trade-off between repair and replacement, the age of the equipment, and the eco-friendly aspects of newer equipment."
Used Restaurant Equipment
- According to an investor, based on his experience, used restaurant equipment is sold at heavily discounted prices in restaurant auction houses. For example, a used Blodgett full-size convection oven was sold for $211.29, which is significantly lower than the price for a brand new oven ($4,295). A ten-burner range was sold for only $20.
- He also shared that restaurant auction houses were already full.
- Different restaurant auction houses around the country sold their used equipment for as low as 30% to 40% less than its price a year ago.
Companies that sell or auction used food service equipment in the US
- Burkett has a revenue of $20 million.
- Restaurant Auction Company has a revenue of $20,000.
- A City Discount Restaurant Equipment & Supply has a revenue of less than $1 million.
- Restaurant Equippers has a revenue of $2.9 million.
- Dubick Fixture & Supply, Inc. has a revenue of $9.2 million.
To determine the market size for used food service equipment in the U.S., we first searched through industry reports published by research firms (such as Grand View Research, Forrester, Gartner, IBISWorld, Euromonitor, Million Insights, Allied Market Research and many more). These sources usually have information on the market sizes of different industries. However, upon searching we were not able to find one for used food service equipment industry in the U.S., globally or any other country or region. We found industry reports for the general food service equipment market and the commercial restaurant equipment markets but they did not provide relevant information.
Next, we searched through press releases (on sites such as BusinessWire, PRNewswire, PR Web, among others), business news websites and databases (such as Newslookup, WSJ, Forbes, CNN, New York Times, Fortune, and many more), blog sites and review sites. We also extended our research to news sites from other regions (such as BBC, The Guardian, Financial Times, The Diplomat, among others). We searched through these sources as they usually contain links to industry reports that could provide insight into the market size and/or links to market reports of different research firms. However, these sources did not lead us to the requested information. We found information similar to what was found in the first strategy. We did find some trends, tips, and guidelines on how to sell and buy used restaurant equipment. This provided helpful findings that could give an overview of the used food service equipment in the U.S., though not figures.
Next, we looked at research papers published by research firms (such as Deloitte, EY, McKinsey and Company, PwC, Accenture, among others) and academic papers published by universities' research bodies and even from students' thesis (from sources as Slideshare, Academia, and other platforms that allow users to upload their work). The information provided through these sources discussed trends, issues, and the future outlook, so exact market size figures could usually not be located. We searched through these sources to see if they provided any data with which we could triangulate the answer, such as what the percentage of used equipment from the general market was, which companies sold used equipment, the issues in this market segment, among others. However, no relevant information was available.
Then, we looked at restaurant equipment manufacturers' websites such as Manitowoc Food, Vollrath, Vulcan, Blodgett, Southbend, Hobart, Cambro, etc. We searched through the annual reports for the public companies, press releases and news articles, blogs, their "About" section, and their products section to find any indication that they sold used equipment, and how much revenue they earned from it. However, these companies do not sell used equipment.
We looked at websites that sold used restaurant equipment and found Amazon, eBay, Restaurant Equippers, Burkett, A City Discount, Dubick Fixture & Supply, Inc. did this. Here, we looked for sales and financial figures from their annual reports, press releases, blogs, and about page. However, we failed to find them. Amazon and eBay are big e-commerce sites which do not sell used items only and there was no segmentation for these business segments in their financial reports. Restaurant Equippers, Burkett, A City Discount, Dubick Fixture & Supply, Inc. were private companies so no annual reports providing financial information was available.
Last, we looked at restaurant auction houses as these mainly sell used and new commercial cooking equipment, refrigerators and freezers, restaurant furnishings, small wares and much more through bidding. We found some of these auction houses such as Texas Restaurant Equipment Auction, Restaurant Auction Company, Local Restaurant Equipment Auctions, Cape Fear Restaurant Equipment, Local Restaurant Equipment Auctions. We searched for their sales figures, however, these auction houses were private companies so no financial reports were available. Through Owler, we were able to find their estimated revenues but these figures were not used to triangulate the answer as the auction houses also sell new equipment.