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The real cost of unreliable equipment

If you can’t count on your equipment to work when production is scheduled, it’s unreliable. In the hospitality industry, unreliable equipment has a greater cost than just monetary: it can affect workers, customer relationships, brand reputation and beyond.

So before you make any cuts to your maintenance budget or delay on replacing failing equipment, take a look at the total cost of unreliable equipment for your sunshine coast hospitality business:

Unreliability cost #1: Downtime

Unreliable kitchen equipment can lead to downtime, causing production to stop for an undetermined period — often without any warning. The true cost of a machine breakdown has been estimated as between four to 15 times the maintenance costs. Because for every second production is down, the business is losing money: your customers will be left without service, which impacts the rest of the supply chain, risks penalties and even customers.

Unreliability cost #2: Excess maintenance

If your equipment isn’t in good working order, it will inevitably require more maintenance than reliable equipment. For example, poor operating refrigerators will use much more power, than one that is serviced often. These costs can quickly add up in terms of expenses, the result is lost profits.

Unreliability cost #3: Lost production

The value of lost production is the income you could have made if the equipment hadn’t failed and normal operation hadn’t been interrupted. Depending on how long your equipment is down for, this can mount up to thousands of dollars.  If you’re business relies heavily on fryers and they stop working, or cease to heat to the correct temperature how will this impact your business? 

Unreliability cost #4: Equipment repair

“Putting out fires” shouldn’t be the preferred way to run your business. Fixing equipment means key staff or technicians are forced to stop what they are doing and manage the crisis. You need to order supplies, spare parts, tools and of course call your local experts to resolve … leading to unpredictable downtimes. This means the total cost of repairing an equipment breakdown is three to five times the cost of the same repair when performed in a planned manner — in order to prevent failure. Our trained technicians are 100% qualified and experienced to repair your equipment and get you trading again. 

Unreliability cost #5: Equipment replacement

With unreliable equipment, you need to consider the likelihood that you will need to replace it when you least expect it. Equipment replacement costs far exceed the total costs of routine maintenance, and you may not have budgeted for any equipment replacements in this financial year, meaning the money needs to come from other areas of the business. And that’s never good….

Unreliability cost #6: Sacrifice of quality

Notwithstanding downtime where no products are being manufactured at all, consider the cost associated with sub-quality products coming off the line when the equipment was failing. This could be labels with barcodes that don’t scan, illegible product codes and information, checkweighers that let packaging pass through with too much or too little inside, and so on. Poor quality goods can quickly erode customer and consumer trust in your hospitality business, not to mention put you at risk of penalties and costly recalls. 

Unreliability cost #7: Safety risk

Safety is paramount for everyone. Unreliable equipment places your consumers and your staff in danger. Inspection equipment that’s failing may let contaminants pass through undetected, putting consumers at risk. But unreliable equipment may also put staff at risk, especially in a high-pressure, breakdown situation. The rule is simple: a reliable kitchen is a safe kitchen. 

Unreliability cost #8: Lost business

Over time, poor quality products and poor quality service can lead to one very significant cost for your company: lost business. In addition to industry association regulations, today’s hospitality business have increasingly strict rules around the food you serve. How can you meet these demands using equipment you can’t rely on?

If any of the above sounds of a concern to you and you’d love to talk. Give us a call on 07 5476 8466 and we’ll ensure all your kitchen equipment requirements are taken care of and you can get back to growing your business. 

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