Northern California firms find new homes for equipment from restaurants shuttered in pandemic
Stoves, refrigerators, freezers, steam tables and other stainless-steel food service hardware items for sale — the physical evidence of the fallout from pandemic-inspired public health restrictions preventing indoor dining — are showing up in online ads, consignment showrooms and becoming part of virtual auctions throughout the North Bay and beyond.
Myers Foodservice Equipment
At Meyers Foodservice Equipment, Supply and Design in Santa Rosa, sales of new equipment have been down 30% since last year, but consignments have increased 70%, according to Scott Grothe, used equipment division manager.
“Restaurants that didn’t — or don’t — have the ability to ‘spread out’ and offer make-shift dining areas outside of their facilities, (including most of the restaurants in Bay Area cities) are more likely to close than restaurants in the North Bay and surrounding rural areas,” Grothe said. “Locally, we’re not seeing as many restaurant closures as one might have anticipated, but those who wish to sell out can only expect to receive a fraction of the original purchase price for used equipment.”
He said customers often prefer to establish a personal relationship by searching for a local firm that can service, maintain and repair commercial kitchen equipment as well as handle deliveries, moving, storage and disposition.
With today’s uncertain economy, Grothe noted that restaurant owners are reluctant to spend large sums on new equipment, which stimulates demand for used products. Frequently changing public health orders have forced restaurants to adapt quickly from indoor to outdoor service, increasing their costs.
Grothe gets calls every day from those looking for outdoor equipment. “This category is expanding with high demand for gas and electric heaters during cold months (now on six-month backorder) followed by patio furniture. Contractors are also benefiting by responding to the need for partitions, umbrellas, tents, raised platforms, wood walls and Plexiglas installations.”
He said a number of customers are shifting to a new food service model by closing indoor restaurants and switching exclusively to carryout, with a few even considering a food truck. These alternatives come with difference equipment requirements, which is also contributing to the rise in consignments and fueling demand for used machines.
Myers was purchased by Edward Don & Company of Chicago in 2019, a nationwide firm with seven full-service distribution centers across the U.S., including some with 300,000+ square foot capacity in Southern California. Myers has a 100,000 square foot warehouse in Santa Rosa in addition to its retail new and used equipment center.
Charyn Auctions
Ronald Charyn, founder and chief auctioneer of Charyn Auctions in Berkeley, said his firm has been doing “a ton of business” since last spring based on an upsurge in the number of restaurant equipment auctions. About 14 virtual auctions have taken place since the pandemic restrictions began to be put into place about a year ago.
His website (charynauctions.com) lists more than 230 completed auctions for restaurants and food preparation facilities in recent years, such as Fundruckers of Emeryville and Walnut Creek, Foodniks of Tiburon, the Marin Country Club, Traverso’s Gourmet Foods, Panera Bread, Coldstone Creamery, Fresh Choice, Il Fornaio Bakery, Napa Valley Grille and Agilent Technologies/River House, among many other recognizable entities.
“Since we can’t have live auctions, we turn to our database of over 10,000 names of those interested in purchasing various types of restaurant equipment and offer them a five-day online auction and bidding portal,” said Charyn.
“The virtual format has gained widespread popularity and produces more revenue than live auctions have historically delivered. When we started, 40-50 bidders were participating. Now we are seeing from 80 to 100 per auction. This has generated gross value for us estimated at close to $1 million since last April. We offer four disposition options including set time liquidations, live-call system auctions, webcast and online auctions.”
Charyn posts sellers’ equipment on a third party online auction service called Proxibid that sets up lot numbers, handles financial transactions by asking bidders for a credit card enabling them to put in a maximum bid, shows bidding progress and enables buyers to come back within the 4-5 day period to see if they wish to raise their bid or stand pat. When the auction ends, Proxibid issues an invoice within 48 hours.
As proof of the abundance of restaurant equipment for sale, Proxibid USA’s website shows 1,861 listings as of Tuesday for food and beverage and commercial kitchen equipment. That’s the second largest category after the 3,114 listings under the business liquidation heading.
