India's No. 1 Hospitality Business Weekly Issue dated - 3rd October 2005
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Pros And Cons Of Hiring Equipment

Hiring of equipment and services for a banqueting party has been the normal practice with small caterers for quite some time. The reasons for resorting to such a practice by these industry players is mainly to cut down on operating costs as well as maintenance costs. This practice has 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 due to inconsistent business it is not a viable proposition to stock cutlery, crockery and glassware. This is because it occupies space and there are chances of staining and rusting due to non usage of the product.

Richard D'souza, proprietor, Silver Bells Catering Services, opines, "We need to stock only the basic requirements viz cutlery and crockery. Even though I 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 of equipment."

"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. Thus to avoid storing of these infrequently used products, services of equipment suppliers becomes indispensable," said an official from a Delhi-based catering company. Catering equipment suppliers stock a wide range of products. Their product range varies from plates glasses, tables, lighting equipment, chaffing dishes, serving cutlery and a lot others that would prove beneficial for the caterers. The charges levied by these suppliers are approximately five to 10 per cent of the cost price. For example, per piece renting charges for melamine plates comes to one rupee, ceramic plates are charged five rupees, silver chaffing dishes about 250 rupees depending on the capacity and stainless steel cutlery is charged 25 paise to one rupee.

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