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Pros and cons of hiring catering equipment
Rajesh Rodrigues - Mumbai
Hiring of equipment and services for a banqueting party has been the norm with
small caterers because this helps them to cut down on operating as well as maintenance
costs. This practice is now being picked up by large, well-established and cash-rich
organisations in an attempt to cater to the increased demand from their clients.
Banqueting being a seasonal business, caterers and now hoteliers are finding
it convenient to hire crockery, cutlery, hollowware, chaffing dishes and even
labour for almost all their temporary requirements. Caterers agree that it is
not a viable proposition to stock cutlery, crockery and glassware due to inconsistent
business. This is because it occupies space and there are chances of staining
and rusting due to non-usage of the product. A leading caterer says, "We
need to stock only the basic requirements - cutlery and crockery. Even though
we maintain 1,000 units of plates, glasses, cutlery and hollowware, it may not
always be adequate as sometimes we have to handle two or more parties at a time.
That is why we resort to hiring equipment."
Meanwhile, an official from a Delhi-based catering company, says, "Catering
equipment suppliers do stock various products thus providing an alternative
to the caterers. For example, suppliers stock silver, melamine, ceramic, copper,
stainless steel and other varieties of cutlery and crockery. It is difficult
for caterers like us to stock them as we may not use them frequently. The service
of equipment suppliers therefore becomes indispensable."
He supplements, "There are times when clients ask for silver cutlery. Besides
being not frequently used, it gets oxidised and thus increases the maintenance
costs. As a result hiring the facilities makes more sense as it offers a variety
to choose from." Catering equipment suppliers stock a wide range of products.
Their product range varies from plates, glasses, tables, lighting equipment,
chaffing dishes, serving cutlery, etc that would prove beneficial for the caterers.
Disadvantages
- The caterer has to depend on the availability
of equipment from the supplier. During peak seasons, the supplier cannot
always guarantee the supply
- The caterer loses the opportunity to customise
equipment as he cannot emboss his logo, thereby losing on increasing
the visibility of his organisation
- In the long run, the cost of hiring equipment
for a period of time may actually overshoot the actual price of the
product. The quality of the hired good may not be consistent as it may
be of various shapes and sizes
- Breakage or loss of equipment may work
in favour of the supplier (especially since suppliers charge rates irrespective
of the age of the goods as damages)
Advantages
- Reasonable or minimum budget for capital expenditure
- Maintaining low inventory
- No maintenance costs involved
- No additional investment on infrastructure
- Decrease in overhead expenditure
- Option to use different equipment thus giving the event a new look
every time
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