Equipment financing is gaining momentum across the U.S. as operators look for ways to modernize without straining cash flow. According to the Equipment Leasing and Finance Association, new business volume for equipment loans and leases rose more than 5 percent year over year in late 2025 — signaling strong capital investment activity heading into 2026, even amid economic uncertainty.
For foodservice operators, leasing is especially attractive right now. It preserves working capital at a time when labor, food and energy costs remain elevated, while also providing predictable monthly payments that simplify budgeting. Leasing can also allow operators to adopt energy-efficient and connected equipment — such as smart ovens, refrigeration, and monitoring systems — without large upfront expenditures, supporting cost control and food safety.
Just as important, leasing reduces the risk of equipment obsolescence and often includes maintenance support, minimizing downtime. In an environment where technology is evolving quickly and margins are under pressure, strategic use of equipment financing may give operators a flexible path to upgrade kitchens, improve efficiency, and stay competitive without overextending their balance sheets. Many analysts expect 2026 to be a pivotal year for operators who use leasing and targeted financing to modernize kitchens, manage costs, and remain competitive.

Foodservice operations contain a wide array of equipment and other items that have unpredictable life spans or can become obsolete quickly. Kitchen equipment like fryers and refrigerators can malfunction, HVAC systems may need to be replaced at significant expense, and the rapid progression of technology can require businesses to replace legacy systems that still function but may hinder their competitiveness in the market. Managing such expenses is often a major challenge in an industry with slim margins. To address that, a recent report from the Restaurant Finance Monitor recommends operators avoid turning to lenders and instead take a page from the playbook that condominiums and cooperative associations have been using for years. Specifically, start a depreciation fund with today’s dollars. Assess the condition of key equipment and other expenditures, along with the year when that item will likely need to be replaced and the estimated cost. Account for annual inflation and direct depreciation dollars to it each month so surprise expenses are easier to manage – or at least won’t derail the business. Beyond better expense management, this approach can position a brand to be better prepared to grow. In a separate report, one restaurant consultancy found that public restaurant companies that spent about 10 percent of their revenue on capital expenses (as opposed to about 6 percent) saw revenue growth improvements of nearly 6 percentage points.

Just when Covid-19 was becoming more manageable for restaurants, the war in Ukraine is intensifying inflationary pressures on everything from wages to food supplies to equipment. No doubt, these are trying times for operators – and economists expect them to continue into next year. But these times can also provide opportunities to fix operational processes that have long needed attention and can no longer be ignored. As Keith Anderkin, chief supply chain officer for the fast-casual chicken chain Zaxby’s, recently said in a podcast for Restaurant Business, “never waste a good crisis.” Imagine how your business will be in a position to thrive in better times if you can get a handle on any weak points now. So what might you do to ensure you’re operating as efficiently as you can? Fine-tune your communication with your marketing team so you’re able to adjust your calendar of promotions in sync with your changing supply. That may mean focusing more on core menu items that are easier to source, then weaving in limited-time offers as needed to ease the pressure when supplies become scarce. Or it could mean strengthening your pipeline of menu items in development so you have a deeper bench to lean on when a key player isn’t available. You might assess your current and future equipment needs and find out where a substitute piece of equipment may be acceptable – and get a jump on ordering something that is critical but comes with a long waiting period. It may mean taking a closer look at your labor and identifying how to ensure you’re using it wisely in both front-of-house and back-of-house tasks. It’s rare to be operating at a time when so many challenges are colliding. Making sure you’re in close connection with all areas of your operation can help you understand any areas where you might find some relief.