For Repeat Business, Brokers Should Look to Restaurants

Order up! If you’re a broker looking for a reliable source of repeat business, one vertical to consider is the restaurant industry.

By the numbers: Here’s why, in two surprising stats:

• 73% of restaurant owners underestimate their initial equipment capacity needs, requiring upgrades within 18 months of their first purchase.
• 81% of restaurant clients return for additional equipment within two years—the highest repeat customer rate in equipment financing.

What does this mean for brokers? 

• Restaurant owners are likely to underestimate volume growth, menu expansion needs, and operational demands when buying their first round of equipment.
• Knowing this, you have the opportunity to 1) guide them to larger initial orders that will better meet their future needs, and 2) stay in touch so that you are ready for solutions when their first upgrade cycle comes around.

Further insights to have at your fingertips:

• Early capacity planning often undershoots: New restaurants underestimate equipment needs by an average of 34%, while expanding restaurants underestimate by 28%. This creates reliable follow-up opportunities for brokers who maintain relationships.
• Kitchen equipment financing has unique loyalty patterns: Restaurant clients who finance kitchen equipment show 81% broker loyalty. Compare that to the 52% average across all industries! Restaurant relationships can be extremely valuable long-term investments.
• Restaurant upgrade cycles tend to be predictable: 89% of restaurant equipment upgrades happen 12–24 months after initial purchase. This gives brokers like you a clear window to re-engage with existing clients for additional business.

What’s the broker bottom line? With these stats in hand and these patterns in mind, you can position yourself to better serve your restaurant customers’ needs as they grow.

• Help clients head off kitchen undersizing and/or plan for inevitable expansions, so they’re not cut up short in terms of financing options.