Feb 23, 2024

Navigating Warehouse Food Service Equipment Auctions: Trends and Opportunities

When it comes to buying food service equipment at auction, it's a common misconception that the only available items come from closed establishments. However, at Grafe Auction, we conduct numerous warehouse equipment auctions, offering a diverse range of food service equipment essentials. These auctions present a unique opportunity to access a variety of high-quality equipment, from top-of-the-line commercial kitchen appliances to essential smallwares. In this blog, we'll dive into the latest trends we've observed in our warehouse food service equipment auctions and explore how these insights can guide both buyers and sellers in making informed decisions.

Key Trends from Recent Sales Data

When reviewing sales data from warehouse food service equipment auctions we conducted in the last year, several trends emerged.

The Role of Brand Loyalty

One trend we noticed was in pricing regarding specific brands:

Buyers paid premiums for brands that are known for durability and quality. These include Hobart, Vulcan, True, Southbend, and more. Compared to less known brands, those listed above sometimes sold for 2-3 times the price, regardless of age.
Niche brands such as Alto-Shaam, Robot Coupe, and Cookshack also went for strong pricing regardless of age.

Most Sought-After Categories

Based on the sales data across the auction reports, the most sought-after equipment categories were:

Refrigeration: Self-contained refrigerators, freezers, prep tables, bottle coolers, etc. consistently commanded high sale prices from both small and large capacity units.
Cooking Equipment: Ranges, griddles, charbroilers, fryers and other cookware regularly received strong bidding. Both gas and electric units were popular.
Smallwares: Dishes, glassware, pots/pans, utensils sold well. Restaurant restocking supplies were also in demand.
Specialty Equipment: Specialized items like slicers, dough sheeters, coffee brewers, and soft serve machines fetched premium pricing in many cases.

A few other less common but noteworthy categories:

Barware: Glass chillers, speed rails, beer dispensers
Mixers & Food Processors: Stand mixers, blenders, robot coupe

Buyer and Seller Guides

For Buyers

When venturing into the world of warehouse restaurant equipment auctions, it's crucial to approach with a strategic mindset. Here are some tips for evaluating and bidding:

Research Beforehand: Familiarize yourself with the types of equipment available. Check the specifications and new retail prices for comparison. Make sure to note where the auction takes place. We can assist in recommending shipping, but if you're planning on picking them up in person, you don't want to have to drive too far!
Inspect Equipment Condition: If possible, inspect the equipment in person or request detailed photos and condition reports. Typically, inspection is the day before or morning of the auction, and you can find this information on the auction event page. It's important to note that compared to a closed facility, warehouse auctions can come with a bit more risk since the equipment may not have been in recent use. Therefore, take that into consideration and contact us with questions - we're always here to talk them through!
Set a Budget: Determine your maximum spend beforehand and stick to it, considering potential repair or maintenance costs.
Understand the Auction Process: Know the terms of the auction, including buyer’s premium, payment methods, and removal procedures.

For Sellers

Maximizing returns on your food service equipment in a warehouse auction requires careful preparation. Here are some tips:

Clean and Repair: Presenting your equipment in the best possible condition is key to getting the most value out of it. Clean and make minor repairs to enhance its appeal.
Detailed Descriptions: Provide comprehensive and accurate descriptions of each item, including brand, model, and any unique features or benefits.
Photography: We take care of the photography for you! Our team catalogs and photographs each item prior to the auction.
Promote Your Items: While Grafe Auction works hard to select the best possible marketing opportunities for your equipment, utilizing your network and social media to promote the auction always helps too.

Market Analysis and Predictions

The market for used food service equipment has been influenced by various economic factors:

Increased Demand: Economic uncertainty often leads to a higher demand for used over new equipment, as businesses look for cost-saving measures.
Adapting to New Consumer Behaviors: Shifts in dining trends, such as the rise of takeout and delivery services, are influencing the types of equipment in demand.

Sustainability in Food Service Equipment Resale

Auctions play a crucial role in promoting sustainability within the restaurant industry:

Extending Equipment Lifespan: By reselling and reusing food service equipment, auctions help reduce waste and the need for new resources.
Energy Efficiency: Older equipment can be upgraded or repurposed, leading to more energy-efficient operations.
Supporting Local Economies: Buying used equipment at auctions often supports local businesses and reduces the carbon footprint associated with manufacturing and transporting new equipment.

Warehouse food service equipment auctions are not just about liquidating assets from closed businesses; they are vibrant marketplaces bustling with opportunities. Understanding the trends and dynamics of these auctions can lead to rewarding purchases for buyers and lucrative sales for sellers. At Grafe Auction, we're committed to providing a platform that meets the diverse needs of the food service industry, ensuring every auction is a chance for a new beginning.

Whether you’re looking to upgrade your food service equipment or seeking to sell your quality equipment, Grafe Auction is your go-to destination. Visit our website to explore upcoming auctions and discover how you can participate in these exciting opportunities.

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