The True Worth of Extended Warranties and Service Contracts

People have a tendency to overlook service contracts and warranties when it comes to restaurant equipment.

But these can be one of the most valuable services you can snag for your business.

Rather than just hoping for the best, it’s always good to plan for the worst. Keep that sense of optimism, but remember that a few wasted dollars are much better than having vital kitchen equipment collapse at a bad time.

Looking At Extended Warranties on Commercial Restaurant Equipment

If you’re buying new appliances for your kitchen, they may offer an extended warranty on top of the normal manufacturer’s warranty.

It’s a good idea to consider them carefully. On a case-by-case basis, the correct choices can make all of the difference in the long run.

The truth is that some things are more problematic, or expensive, to fix than others. An extended warranty can easily be made up for if you only have one or two service calls during the time that you’re covered.

For instance, ice machines have a tendency to develop problems much before their extended warranty is out. The fixes can get expensive in a hurry as well. This makes them an ideal candidate for the purchase on your end.

Large restaurants with a lot of people coming in should pay particular attention to them. If you’re serving five times the people… you’re using your equipment five times as much. The more you use it, the higher the failure rate is going to be.

Or you may have a resilient machine that’s constantly cranking away, increasing the chances of an early failure simply do to overuse.

Extended warranties are very much a case-by-case basis sort of thing, but if you can afford them in the short term it can greatly be to your benefit.

Even the most profitable restaurants may not want them on every appliance, but even the smallest should give some consideration to making sure their essentials are covered. 

Keeping Things Going With a Service Contract

Service contracts, on the other hand, can be extremely valuable in the long run. Whether it’s just making sure that everything is running efficiently and you’re in tip-top shape or handling catastrophic failures at bad times you’ll be in good hands by signing one.

The advantages are pretty clear to anyone in the game:

• Regular preventative maintenance is probably the deciding factor in the longevity of your kitchen equipment.
• Preventative services can also ensure that you catch small problems before they become bigger ones, which saves a lot of money.
• More reliable equipment means a more efficient kitchen, higher morale among your staff, and happier customers.
• You also become a top priority if something does go down hard. If your competition and you both have an equipment failure and you have the contract… you’ll be the first one fixed in most cases.
• You’ll also have time saved on finding someone who can handle your equipment.
• Most of the time, the technician who comes in for larger services is already going to be familiar with your equipment. You’d be surprised how much of a difference it can make to have someone who already knows the machine in question come in.

Essentially, it’s an insurance policy for all of the expensive appliances and tools which make your business run. That’s not bad, especially considering your car insurance salesman isn’t going to be coming out to make sure nothing problematic is happening with your car.

We’ve got our bias, of course, but a service contract becomes more and more essential with larger kitchens and bigger customer volumes.

It’s the best way to make sure that you’re always running on top of things. Add in becoming the first to get service when things get tight, and you’ll be in good hands.

Making the Right Decisions for Your Restaurant

What does this all boil down to?

You have to make the right decisions for your restaurant. We can only outline so much for you, your budget, your equipment, and your own choices will always be the deciding factor.

For high-volume restaurants, we think that both extended warranties and a service contract are the way to go. That way you’re covered most of the time, and you’ll be able to be a priority when the worst happens.

For smaller businesses, you may want to decide on a case-by-case basis which extended warranties you want although service contracts are still a lifesaver in an emergency.

Deciding whether or not things are worth it is a much larger concern for smaller businesses, but chances are that you don’t have an in-house tech to keep up on everything. Money paid upfront is usually going to ensure that you’re down for a minimal time in the future.

Fitting things into your budget can get tough, but with the right choices, you’ll be on to smooth sailing for a long time to come.