Opening a food franchise can range from the thousands to the millions of dollars. A significant portion of franchise start-up costs—in cases, well over 50%—is equipment (note: for restaurant franchises, equipment is often lumped with things like furniture and décor, if applicable, in breakdowns of start-up costs).
Having the right tools is essential to your success as a franchisee. While you might want to save money on big ticket items like equipment, you can’t afford to skimp on quality. Equipment that helps you consistently produce quality food is more than worth its price in the customer satisfaction and positive word-of-mouth it can bring.
Above quality, new technology is now allowing food franchisees and other restaurant owners the ability to create specific tastes that consumers prefer as well.
For example, for bakers, pizza makers and other restaurant owners, water systems such as the New York WaterMaker allow them greater control over the flavor they want to create. The unique commercial water filter goes beyond its foundational purpose of filtration to replicate “the exact hardness, molecular structure, and chemical composition of a specific location’s water” (the water composition replicated doesn’t necessarily have to be New York’s).
According to the company, “it improves the taste and texture of bread, coffee, tea, water, carbonated beverages and other recipes. In return, consumers will reward these restaurants with increased business.”
When it comes to the purchase or lease of franchise equipment, franchisors commonly specify brands, types or models of equipment for their franchisees to use. This isn’t necessarily a bad thing. The experience franchisors have, particularly with their system, is a great resource and guide for franchisees in being successful as soon as they possibly can. However, sometimes franchisees may purchase or lease equipment that meet the franchisor’s specifications from their own sources.
For illustration, below you can read a portion of McDonald’s specifications on equipment from its most recent Franchise Disclosure Document (FDD):
Except as noted [in FDD Item 8], McDonald’s does not require that you purchase or lease goods, services, supplies, fixtures, equipment, inventory, or computer hardware and software from McDonald’s or our designees in the establishment or operation of your McDonald’s restaurant business. As described below, we require that these items and sources of supply meet the specifications, requirements, and standards that McDonald’s has, in its sole business judgment, formulated for use in the McDonald’s System…
…McDonald’s strives for the maintenance of quality and uniformity throughout the McDonald’s System by identifying standards for the purchasing, distribution, preparation, and service of goods, services, supplies, fixtures, equipment, inventory, and computer hardware and software. We consider the specifications, requirements, and/or standards for food, equipment, information technology, purchasing, distribution, preparation, and service to be of critical importance to the success of the McDonald’s System, and therefore require that you deal only with suppliers that have been approved by us.