Pricing, Payment Plans Top Priorities as Restaurants Shop for New Equipment
If you’re expecting guests, you naturally want to make sure your place looks presentable. Hint: Maybe it’s time to replace that ratty old backyard grill with a newer model before you host your first post-pandemic shindig?
Restaurants across the country, looking forward to an influx of crowds this summer, are thinking along similar lines. And, just like many consumers today, they are rethinking where and how they make their purchases.
“We learned that restaurants plan to make significant equipment purchases in the coming months,” said John Tomich, co-founder and CEO of Credit Key. “What’s interesting is these buyers place more importance in how they pay for equipment than where they purchase that equipment.”
Credit Key, a provider of B2B e-commerce payments solutions, surveyed 150 restaurant owners and managers, and found their thinking on equipment purchases has evolved. For instance, 85% of respondents reported they do more comparison shopping these days and only 15% said they remained loyal to one restaurant supply store.
“There’s optimism on the buyers’ side, but they’re willing to leave vendor relationships behind in favor of better pricing and payment plans that put less stress on their cash flow,” Tomich noted. “A safeguard for [equipment] sellers is to provide buyers with varied payment options at checkout, including the increasingly popular buy-now-pay-later solution.”
Among other revelations from the survey:
- 70% of restaurants plan to dedicate their Restaurant Revitalization Funds dollars to purchasing equipment, furniture and supplies in 2021.
- 92% of respondents said they intend to purchase equipment online more frequently going forward.
- 80% of restaurant owners and managers forecasted a meaningful increase in business, but also worried that Covid-19 might present future disruptions.
Nothing against your new gas grill, but purchases by restaurants are a big deal. Credit Key said small to medium-sized enterprises such as restaurants account for half of all B2B payments processed annually in the United States, or roughly $4.5 trillion.