CCI: Used Foodservice Equipment

Part
01
of six
Part
01

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.

Research Strategy

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.
Part
02
of six
Part
02

Used Food Service Equipment - Past Market size

After intensive research, we could not determine the market size for used food service equipment in the US over the last 3-5 years, year-on-year. However, we have pulled available information to provide key findings: the food service equipment industry in the US had a market size of $7.42 billion in 2015 and $7.84 billion in 2016; lastly, the sales of the used food service equipment tend to be strongest in the areas where the installed base of equipment is largest.

USEFUL FINDINGS

  • The food service equipment industry in the US had a market size of $7.42 billion in 2015 and $7.84 billion in 2016, thereby growing by 5.7% YoY. The overall global food service equipment market size was estimated to be $31.64 billion in 2018 and is expected to expand at a CAGR of 5.0% during the forecast period of 2019-2025.
  • The primary factors that have contributed to the growth of the food service equipment industry, in general, include changing lifestyle, increased demand for refrigerated products, increased import and export activity in the food and beverage sector, and evolving food consumption trends.
  • The sales of the used food service equipment tend to be strongest in the areas where the installed base of equipment is largest i.e. hotels, motels, and restaurants. In an expanding economy, though, food service establishments generally opt to buy new products.
  • The demand for used equipment is highly influenced by the restaurant operators' decision to purchase new equipment versus opting for repair and maintenance of existing instruments. Other factors that influence product demand include the "trade-off between repair and replacement, the age of equipment, and the eco-friendly aspects of newer equipment."
  • The industry, based on the end-user, is primarily segmented into the full-service restaurant (FSR), quick service restaurant (QSR), institutional, and others. Full-service restaurant (FSR) is estimated to be the largest revenue-generating segment with the quick service segment expected to expand at the highest CAGR of 5.8% from 2019 to 2025.
  • Burkett Restaurant Equipment, based in Perrysburg, Ohio, is one of the leading used food service equipment sellers in the US. It works with 175 suppliers across the country, providing them with new and used restaurant equipment items ranging from refrigerators to small appliances and furniture to forks. The Company has 125 employees and estimated revenue of $25.7 million.
  • National Restaurant Equipment & Supply, based in Maryland, is one of the largest used restaurant equipment dealers in the US. The company has over $35 million worth of inventory in new and used food service equipment supplies and has a facility spread over 165,000+ sq. ft.
  • ACityDiscount, based in Atlanta, Georgia, is a national retailer of new and used restaurant equipment and food service supplies. The company has a wide variety of used food services equipment available ranging from furniture to refrigeration, bar and kitchen equipment. The company has 136 employees and estimated revenue of $27.2 million.


Research Strategy:

To address this request, your research team started by scouring through the various research reports from Grandview Research, IBIS World, Mordor Intelligence, Reuters, Report Linker, Global News Wire, etc. in relation to the market size of the used food service equipment industry in the US over the last 3-5 years. Such reports are a potential source for any market sizing/industry revenue-related information and hence, we tried to leverage this research path. While we could find information around the US market size of the food services equipment for 2015 & 2016, there was no information found regarding the same for the used sub-segment specifically. We also tried to hunt for paywalled research reports on the requested information but again, all the sources found referred to the food services equipment industry.
Next, we searched specific media websites such as Forbes, WSJ, Business Insider, Bloomberg, Reuters, Live Mint; food service equipment blogs such as Alto Hartley, CKithchen, JES Equipment Blog; statistical websites and other websites such as Statista, SlideShare, Restaurant Business Online. All these are potential sources where market size and annual revenue figures apropos of any industry are quoted (mostly from paid reports). However, all the information centered around the key players in the market and various trends in the food services equipment industry. There was no information found on the market size of the used food service equipment industry in the US over the last 3-5 years.
Next, we searched through company filings such as annual reports, supplemental information, company blogs, and press releases of some of the largest companies like Burkett Restaurant Equipment, National Restaurant Equipment & Supply, and ACityDiscount that are involved in the manufacturing and supplying of used food service equipment in the US. Normally, companies do disclose some information regarding the industry in which they operate through their filings, especially annual report. However, all the information found centered around the products and competencies of the individual companies with no specific market size information available. Also, since most of the companies were private, there were no detailed filings available for most of them.

Lastly, we expanded our search by searching for sources beyond two years. With this approach, we hoped to look for slightly outdated but useful information on the US used food services equipment industry. The idea was to locate any old report with the market size information for 2013-2018. However, based on this strategy, we were not able to find any pertinent information pertaining to the requested segment for the requested periods.

After these strategies, we could not find the past market size of the used food service equipment for the last 3-5 years. The main reason for this could be the niche nature of the industry. Furthermore, the industry is extremely fragmented in nature with many regional and small private players operating in the US market. Also, most of these players deal with both new and used equipment with no revenue segmentation available for any of them. These could be attributed to the difficulty/inability to determine any industry size.
Part
03
of six
Part
03

Used Food Service Equipment - Growth Rate

The overall global Food Service Equipment market size was estimated to be $31.64 billion in 2018 and is expected to expand at a CAGR of 5.0% during the forecast period of 2019-2025. Lifestyle change, increased demand for refrigerated products, increased import and export activity in food and beverage sector, and evolving food consumption trends are the primary factors that have contributed to the growth of the Food Service Equipment industry.

Helpful Findings

  • The overall global Food Service Equipment market size was estimated to be $31.64 billion in 2018 and is expected to expand at a CAGR of 5.0% during the forecast period of 2019-2025.
  • Lifestyle change, increased demand for refrigerated products, increased import and export activity in food and beverage sector, and evolving food consumption trends are the primary factors that have contributed to the growth of the Food Service Equipment industry.
  • The sales of the Used Food Service Equipment tend to be strongest in the areas where the installed base of equipment is largest i.e. hotels, motels, and restaurants. In an expanding economy, though, food service establishments generally opt to buy new products.
  • The demand for used equipment is highly influenced by the restaurant operators' decision to purchase new equipment versus opting for repair and maintenance of existing instruments. Other factors that influence product demand include the "trade-off between repair and replacement, the age of equipment, and the eco-friendly aspects of newer equipment."
  • Based on the end-user, the industry is primarily segmented into Full-Service Restaurant (FSR), Quick Service Restaurant (QSR), Institutional, and others.
  • The full-service restaurant is estimated to be the largest revenue generating a segment with Quick Service segment expected to expand at the highest CAGR of 5.8% from 2019 to 2025.

RESEARCH STRATEGY:

There's no publicly available information apropos to the growth rate for Used Food Service Equipment industry in the US over the next 3-5 years. The primary reason for the information to be missing can be the niche nature of the industry due to which no research has been compiled around the same. In addendum, the industry is extremely fragmented in nature with many regional and small private players operating in the US market. Also, most of these players deal with both new and used equipment with no revenue segregation information available for used vs new equipment sales. This makes it extremely arduous to garner the industry level revenues and determine the growth rate of the same. Below is the deep dive into the various strategies that we deployed to search for the requisite information.

First, we scour through the market reports from reputable sources such as Grandview Research, IBIS World, Mordor Intelligence, Reuters, Report Linker, Global News Wire etc apropos of the growth rate of the Used Food Service Equipment industry in the US over the next 3-5 years. While we were able to find information around the US market size and growth rate of the Food Services Equipment industry, there was no information found regarding the growth rate of the 'Used' sub-segment specifically.

After then, we carried out a search on media sites such as Forbes, WSJ, Business Insider, Bloomberg, Reuters, Live Mint etc; food service equipment blogs such as Alto Hartley, CKithchen.com, JES Equipment Blog, Restaurant Business Online among others. All these are potential sources where market size and forecasted period growth rate numbers apropos of any industry are quoted (mostly from paid reports) and hence, the idea was to garner any such information from these sources, however, information found in these sources was on the key players in the market and various trends in the food services equipment industry with no information found of the forecasted growth rate of Used Food Service Equipment industry in the US over the next 3-5 years.

Next, we scour through the websites, company filings such as Annual Reports, supplemental information etc; company blogs and press releases of some of the largest companies such as Burkett Restaurant Equipment, National Restaurant Equipment & Supply, ACityDiscount etc involved in manufacturing and supplying used food service equipment in the US. Normally companies do disclose some information regarding the industry they operate in through their filings especially annual reports and hence the idea was to check if any of them has provided any growth rate related information on Used Food Service Equipment industry in the US. However, the information found catered around the products and competencies of the individual companies with no specific market sizing or growth rate information available. Also since most of the companies were privately held, there were no detailed filings available for most of them.

We also attempted to triangulate the information using current and forecasted Used Food Service Equipment industry market size and CAGR calculator to determine the industry growth rate in the next 3-5 years. The idea was to find information on the nature of the current US industry market size of used food services equipment and then use the CAGR calculator to calculate the industry growth rate over the next 3-5 years. However, after scouring through the above-mentioned sources, no such information could be located and all the data found pertained to the food services equipment industry only. As a further extension of this strategy, we tried to see if we can locate the forecasted revenue growth and market share information for the key industry players outlined in the last strategy above. The idea was to find information on how the industry players that hold the majority of the market share is expected to grow over the next 3-5 years and hence, the industry is also very likely to follow the same growth path but again due to some players being private companies and lack of any management commentary or guidance from them, no such data could be garnered.

Furthermore, we expanded the research time frame by going beyond the standard Wonder's two-year source timeline. With this approach, We hoped to look for slightly outdated but useful information on the US Used Food Services Equipment industry. Generally, research reports have projections for 5-10 year time frame and hence the idea was to locate any old report from 2014-2016 period with the market size and growth information projections for the 2018-2024 period. However, we were not able to find any pertinent information and no relevant reports pertaining to Food Services Equipment segment could be located from the past. All reports found were for the current market size and projected growth rate of the Food Services Equipment sector.
Part
04
of six
Part
04

Used Food Service Equipment - Trends

Information regarding trends in the United States used restaurant equipment industry couldn't be found. However, some useful findings were established. In summarizing the findings, buying of used restaurant equipment could lower the cost of capital expenditure for startups, and sellers could sell their used restaurant equipment products in regional hotel and restaurant associations.

Useful Findings:

  • Since used the restaurant equipment is selling at fire-sale prices, their sales will affect the revenue of restaurant equipment manufacturers and the food industry economy.
  • Customers buying used restaurant equipment have the bargaining power to negotiate the prices of the used equipment as dealers aren't ready to hold onto items any longer than they have to.
  • Customers can save money from purchasing used food service equipment like used stoves, ovens, mixers, etc. This is because they get them for lower prices that can go to 50 percent lower.
  • For the purposes of selling used food service equipment, sellers can advertise the products on websites such as Craig list, Kijiji, among others that will expose the listings to the widest possible market.

Research Strategy

In this research, we employed a number of strategies and they include the following.
  • My first strategy involved looking for restaurant association websites like garestaurants.org, American restaurant association, restaurant.org among others. This strategy did not help much because the information that we found wasn't about trends that affect the used food service equipment industry in the United States but was about whether we should consider buying used restaurant equipment. Our research team had thought that this strategy may work as the restaurant industry business associations provide information about the restaurant industry and they could have published this information.
  • The team's second strategy involved searching for academic research papers that may have been possibly published on these topics/trends. We searched on sites like Wharton, Academia, Research Gate, and others. Also, this strategy proved unsuccessful as it did not provide the required information. The reason why we searched on these sites is that such sites are known to provide various studies and research on various topics. Hence, we were convinced of the usefulness of such research papers when researching about the United States used food service equipment industry. However, the information we could find was about food service industry trends, food service technology, etc.
  • In our third strategy, we checked multiple reports and articles that talked about Used food service equipment industry. The search was targeted towards sites like gurufocus.com, business.com, bizfluent among others. However, this strategy did not work as the information we could find was about tips for selling used restaurant equipment, whether we should buy used restaurant equipment, etc. In pursuing this strategy, our team had thought that they would draw parallel information from such articles and look for common trends these articles are talking about regarding the used food service equipment industry. We could have then presented them as trends by showing how they directly/indirectly impact the overall used food service equipment industry. Also, we looked for interviews with restaurant owners and chefs regarding the purchase of used equipment on sites like restaurantschools.com, dineability.com among others. This strategy also did not work as the information we could find was about their success, how they manage their restaurant business, etc.
  • In our final strategy, we looked for paid market research reports on sites like marketwatch, grandviewresearch, alliedmarketresearch among others. The reports provided brief information about the market size, growth, and trends about food equipment industry, but there was no information on the used food service equipment industry in the United States. We had expected that market research sites may have published this information as brief findings in their reports.
  • We, therefore, concluded that information describing trends in the United States used food service equipment industry is not publicly available.



Part
05
of six
Part
05

Used Food Service Equipment - Suppliers & Buyers

Suppliers in the US used food service equipment industry include dealers, retailers, restaurants, auction houses, mom-and-pop shop owners, and simply homeowners with big equipment at home. Buyers include dealers, retailers, start-up restaurants and independent coffee shops, franchises, resorts and culinary institutions.

Suppliers

1. Dealers and Retailers
Example:
2. Restaurants
Example:
3. Auction Houses
Example:
4. Mom and pop shop owners, and simply homeowners with big equipment at home
Example:

Buyers

1. Dealers and Retailers
Example:
2. Start-up restaurants
Example:
3. Franchises
Example:
4. Resorts
Example:
5. Culinary Institutions
Example:
6. Coffee shops
Example:

Research Strategy:

To be able to get the supplier and buyer categories in the US used food service equipment industry, we used the following strategies:

Initially, we looked for a precompiled list of the supplier and buyer categories in the US used food service equipment industry. We went to 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 had the market sizes reports of different industries together with the key players which can be equated to suppliers. However, upon searching we were not able to find one for used food service equipment in the US even a global report or for other countries or regions. What we found were the industry reports for the general Food Service Equipment or Commercial Restaurant Equipment markets. We checked these reports to see if they mentioned about the used or secondhand equipment but we did not find any. The key players mentioned were also manufacturers such as AB Electrolux; Ali Group; ITW; Middleby Corporation; Dover Corporation; and Manitowoc Company Inc.

For the mentioned manufacturers on those found industry reports above, we checked their websites to see if they sell refurbished items. However, these companies did not show any indications of the said business section. We continued my research on manufacturers as the client believed that suppliers could include equipment manufacturers. This was to prove or disprove his assumption. So we searched for more equipment manufacturers and found Vollrath, Vulcan, Blodgett, Southbend, Hobart, Cambro, and many more. We checked their websites to see if they sell refurbished items. However, these companies did not show any indications of the said business section. We also checked Walmart, E bay and Amazon where refurbished items can be sold. We found many products of these companies which were refurbished, preowned or used. We checked the buyers' profiles to see if they were the equipment manufacturers themselves selling these products. However, we found only third party sellers. Therefore, equipment manufacturers could not be a supplier in the US used food service equipment industry.

Next, we looked at research papers published by research firms such as Deloitte, EY, McKinsey and Company, PwC, Accenture, among others, usually the big ones. We also looked at academic papers published by universities' research bodies and even from students' thesis. These usually can be seen from Slideshare, Academia, and other platform that allow someone to upload one's work. These sources usually discussed about the trends, issues, future outlook and mentioned some companies which they based their facts and findings. We were, therefore, looking for some papers that mentioned the buyers and suppliers of the US used food service equipment industry. However, we could not find one with topics about the used food service equipment industry in the US. Even the general food service equipment has rare research papers.

We then shifted our search to look for articles that talked about the used food service equipment industry in the US from different sites. We looked at news and business websites and databases such as Newslookup, WSJ, Forbes, CNN, New York Times, Fortune, bizfluent, and many more. We also extended my research on other regions' news sites such as BBC, The Guardian, Financial Times, The Diplomat, among others. In case we missed some industry reports and research papers, we also checked for articles from press releases sites such as BusinessWire, PR Newswire, PRWeb, among others as these usually wrote articles with summary of research and survey reports. We also checked restaurant and food blog and news sites such as QSRweb, Restaurant Den, Buzztime, Modern Restaurant Management, Fast Casual, Restaurant Hospitality, QSR magazine, among others. Here, we found some trends, tips and guidelines on how to sell and buy used restaurant equipment. From the articles we found some categories and names of suppliers mentioned such as retailers, dealers and restaurant auction houses. Buyers mentioned were only startup restaurants but no examples were mentioned.

Having found some categories and names of suppliers which were retailers, dealers and restaurant auction houses, we researched more to find the restaurant category which was mentioned by the client. Knowing that restaurant auction houses were venue for suppliers offering their used equipment, we looked for an example of an auction house and found Restaurant Auction Company. We checked its websites especially its clients section or the testimonial page to see what were the suppliers categories. We found Restaurant Auction Company's testimonial page and saw that restaurants also supply used food service equipment in the form of auction. Thus, proving the client's assumption that restaurant also was a supplier. We also found one buyer such as an all-season resort and some small business owners.

We also found a Facebook group whose members were mom-and-pop shop owners, and simply homeowners with big equipment at home selling their used and preowned food service equipment.

For the buyers, we used the suppliers websites specifically their client or customer page or their testimonial page to see what were the categories of their buyers. Here, we successfully the different buyer categories in the US used food service equipment industry except for churches and hospitals which were mentioned by the client. We employed the different strategies above to find any indication that churches and hospitals buy used food service equipment. Here, we found one retailer that offers new equipment, small wares, and used equipment and mentioned that its customers include: corporate cafeterias, schools, hospitals, nursing homes, churches, country clubs, institutions, hotels, and restaurants. However, this site did not have any specific names of customers plus we cannot be certain that these customers bought the used equipment since the company also offers new equipment.


Part
06
of six
Part
06

Used Food Service Equipment - Best Practices

The best practices for managing an online marketplace include knowing the target market, having a business plan and developing a strategy, providing accurate product information, choosing relevant search words and keywords, choosing the right marketplace platform, choosing an order management software, giving importance to feedback, not copying competitors, and managing expectations.

BEST PRACTICES IN MANAGING AN ONLINE MARKETPLACE

Know the target market/consumer

  • First, define the target audience and conduct a survey/study/research to find out how the needs of the customers can be met. The results will be useful in identifying how to better serve the customers.
  • Do not sell too many products as it is better to sell niche products.
  • Knowing the audience can work wonders on a marketplace's success.

Have a business plan and develop a strategy

  • Before starting online selling, it is important to have a marketing strategy in place for the products or services intended to offer.
  • In marketplaces, it is important to have a unique brand identity to be outstanding. When planning, the pricing structure is important to be included.
  • In developing a strategy, the following should be utilized: the use of social media platforms such as Facebook, Twitter, and Instagram; informative and interesting videos; mobile-friendly marketing campaigns, email marketing, etc.

Provide accurate product information

  • Products are the company's identity. Buyers want to know what they are buying before they purchase them. As a seller, accurate product information should be highlighted through the following:
    • Images: Make sure images are clear and represent the actual product being sold. The item should be the focal point of the picture. Focus the item as much as possible to highlight the item. Take photos from different angles.
    • Product Descriptions: Be honest to avoid losing customers. Make sure that the product description is clear, concise, and accurate.

Choose Search words and Keywords

  • Be discoverable to sell.
  • Make use of search words and keywords that are highly relevant to make the brand more accessible and reachable to potential customers.

Choose the right marketplace platform

  • The platform to use to make the goods available online must always be fit with the product base.
  • It should also provide a viable channel that customers from all over the world will want to shop on.

Choose an order management software to sell easily

  • Selling on marketplaces can get taxing updating inventory, handling dispatches, etc. on many marketplaces at the same time. An option of going for software that handles all this can be an option.
  • Select the software that will work across all the marketplaces to sell on.

Do not Disregard feedback from customers

  • In most marketplaces, customers are allowed to give ratings and feedback. Take feedback seriously.
  • Some parameters for seller performance include the following: cancellation of orders, customer returns, complaints about quality, and many others.
  • Listen to feedback as it will help the company understand its customers. Feedback can be helpful to know the ways on how to offer them better products and provide better customer service.

Do Not Copy Competitors

  • It is very important to stand out from other competitors and offer them something very different.
  • Think about what is different about the product/services being offered and deliver it to customers.
  • Work towards creating an advantage for the customers and make them feel that they made a good decision in choosing. This way, competitive advantage can be built over the other competitors.

Manage Expectations

  • Do not set unrealistic expectations.
  • Dedicate complete and undivided attention to building the business. Focus on realistic goal setting.
  • If misconceptions take place about certain aspects, rework on the original plans.

Research Strategy:

Initially, we searched for best practices on managing online marketplaces through relevant marketing, sales, and technology web pages. To ensure that all information is relevant, the credibility of the websites where they were found is checked closely. From these sources, we consolidated different lists of best practices and chose the ones that are the most consistently mentioned in numerous listings.
Sources
Sources

From Part 01
Quotes
  • "The global food service equipment market size was estimated at USD 31.64 billion in 2018 and is expected to expand at a CAGR of 5.0% during the forecast period. "
Quotes
  • "At a recent restaurant equipment auction, used equipment was selling for pennies on the dollar"
  • "In my recent experience, used restaurant is selling at fire sale prices. This does not portend good things for restaurant equipment manufacturers, the food industry and maybe even the overall economy."
  • "At a recent auction where I sold some equipment, everything went at fire sale prices. A top of the line Blodgett full size convection oven went for $211.29. Brand new the same oven goes for $4,295. Feel free to follow my links. I am not going to divulge the auction house because I do not want to drag them into this—it is not their fault this stuff is going cheap. A Southbend four burner range with an oven went for $105. Brand new, $1,545. A ten burner range went for $20. I do not know what brand but it is probably $3,000 new. A Manitowoc ice machine went for a little over $300. New, a comparable machine goes for $2,677. Cross town, another restaurant auction house would not even take my equipment. They were full. I checked a few different auctions around the country. Some stuff went dirt cheap and some 30% to 40% less than what it was selling for a year ago. I encourage you to do your own research."
Quotes
  • "Restaurant Auction Company is dedicated to providing bidders with an easy to use method of acquiring restaurant equipment and supplies at great prices. Our auctions include used and new commercial cooking equipment, refrigerators and freezers, restaurant furnishings, smallwares and much more."
From Part 05
Quotes
  • "Search for websites specializing in the selling of used restaurant equipment. Such websites allow you to reach your exact target audience quickly. Check out websites such as Double Take Auctions and Equippers. "
  • "Find retailers dealing in used restaurant equipment. Pierce Food Service Equipment, Restaurant Equipment World, ACityDiscount and ABC Restaurant are some examples"
  • "As a restaurant owner or operator, you may need to sell your restaurant equipment because you are closing the restaurant or replacing the equipment with an upgraded version. "
Quotes
  • "Pierce Food Service Equipment Co. Inc./ Pierce Chef's Mart (TM) Here at our online store you will find over 5000 high-quality products (new and pre-owned), all at a reasonable price. Sharp photos and mini-movies provides you with an excellent view of what we offer."
Quotes
  • "Whether you are a small business owner, the operator of a restaurant chain, or simply someone who has a small lot of food service supplies on your hands, ACityDiscount invites you to sell used restaurant equipment to us. We offer complete inventory buyout and proactive consignment opportunities. Once the form below is submitted, ACityDiscount can help you in three ways:"
Quotes
  • "Since 1966, Restaurant Equippers has been an industry leader in buying and selling Used Food Service Equipment at our Columbus, Ohio Warehouse Store. Our thorough state-of-the-art reconditioning process ensures every item offered for sale to be in guaranteed working condition."
Quotes
  • "We have a warehouse full of equipment that can be purchased on-site - no delivery fees, no wait. Located in Orlando, FL, our store houses 45,000 square feet of new and used restaurant equipment. "
Quotes
  • "Restaurant Auction Company is dedicated to providing bidders with an easy to use method of acquiring restaurant equipment and supplies at great prices. Our auctions include used and new commercial cooking equipment, refrigerators and freezers, restaurant furnishings, smallwares and much more. "
Quotes
  • "Gator Chef's restaurant equipment division and licensed technicians professionally test, clean and restore all used restaurant equipment to meet or exceed all manufacturers’ specifications. At Gator Chef we understand that everyone works on a budget. Because of this, we buy, sell and trade used equipment. All our used equipment is checked out by a certified technician so you can be sure you’re getting the best stuff around town."
Quotes
  • "Cross town, another restaurant auction house would not even take my equipment. They were full. I checked a few different auctions around the country. Some stuff went dirt cheap and some 30% to 40% less than what it was selling for a year ago. I encourage you to do your own research."
Quotes
  • "Come and see our expanded offerings of new equipment, smallwares, and used equipment."
  • "Our customers include: corporate cafeterias, schools, hospitals, nursing homes, churches, country clubs, institutions, hotels, and restaurants."