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Are We Going to See an Increase in Restaurant Liquidation Auctions?

Restaurant Liquidation Auctions 2022

Restaurant liquidation auctions provide new restaurateurs with a great opportunity to buy quality, name-brand, used restaurant equipment at a fraction of the cost of buying new. For anyone trying to start a new business, the savings that can be realized on used equipment purchases can go a long way to stretching a budget and reducing the time to profitability.

Restaurant liquidation auctions also provide struggling businesses an offramp by which business owners can recoup some funds, and thereby minimizes their losses if the business isn’t sustainable. The last few years have been very challenging for restaurant owners as they have tried to look to the future and make predictions about what will happen next on the global health front, and how that will affect them. 

While no one can say for certain what will happen next, the National Restaurant Association has released its 2022 State of the Restaurant industry report to help both current and prospective restaurant owners plan for and navigate the coming year. The findings of what we can expect as both restaurant owners and consumers is mixed.

 

Restaurant Industry Trends & Challenges

The report finds that the foodservice industry is forecast to reach $898 billion in sales this year, and the workforce will need to grow by 400,000 jobs to help sustain and enable this. Restaurants have been hit very hard by the “great resignation,” with many struggling to find employees and being forced to reduce hours of operation due to staffing shortages. There is no quick fix for this in the tight labor market and it will continue to be a struggle through 2022.

 In addition, many restaurant and food service businesses are facing either intermittent or ongoing supply chain challenges. These disruptions run the gamut from food and beverage items to paper goods and cleaning supplies. Existing restaurants have been modifying menus to continue to meet consumer demand, and this will likely need to continue through the first half of 2022, with more than 50% of surveyed restauranteurs expecting disruptions to continue through the end of the year.

To address these issues, restaurants are looking for options to increase automation within both the preparation and dining spaces. Expect to see the increase of self-serve ordering kiosks continue in the fast food and fast casual sectors, where options for improved efficiency in the kitchen are also being explored. Restaurants from all sectors are also expected to reduce the diversity of their menu offerings in order to mitigate supply chain problems and increase efficiency at all levels of preparation. 

 

What Does This Mean for Restaurant Liquidation Auctions?

For restaurants that scraped through 2021, continuing to cope with this continued instability may prove too much. At the moment, many of the programs that were put in place to help businesses manage through the pandemic have lapsed, but the economic uncertainty has not. With increases in labor, food and other operational costs, it may be time to close down operations.

For these individuals, restaurant liquidation auctions managed by seasoned professionals can provide the best path out of an unfortunate situation. Experienced restaurant liquidation auction professionals understand the challenges involved with closing down a business and can work to answer your questions on what the process entails.

For those who are ready to start a restaurant or foodservice business for themselves, knowing in advance the challenges they may face will enable them to make the best plans for success. Part of those plans should be sourcing used restaurant equipment. From restaurant furniture, to ovens and refrigeration units, new business owners can save thousands of dollars without sacrificing quality.

 

PCI Auction Group for Restaurant Liquidation Auctions

Whether you find yourself needing to close your business or you are ready to start a new one, PCI Auction Group is the right place for you to turn. The professionals at PCI Auction Group have helped countless restaurant owners to assess their holdings, inventory, uninstall, photograph and sell complete restaurant inventories, from the barware up through the ovens and walk-in refrigeration units. We make it easy for our sellers. Contact us if you’d like to learn more about how we can help you.

We make it easy for our buyers too! Just register to bid and then review the thousands of items for sale. With new auctions daily, if you don’t find what you need today, chances are good it will be available tomorrow. Get started today!

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