How do I sell my restaurant equipment when I close?

Once you have decided to close rather than sell the business, the equipment becomes the main thing left to sell, and the clock is the lease. The work is mostly organizing. Know what you own, who else has a claim, where each piece can go and when it has to be out. Here is a workable order.

List what you own and what you do not

Walk the kitchen and dining room with a notebook and photograph each item with its model and serial plate. Mark what is paid off, what is financed and what is leased. Whether you can sell an item depends on who owns it, and a lender may hold a claim over items you do own. Check the lease and loan terms, and ask your lawyer how to deal with those first.

Check the lease for what must stay

Some leases treat hood systems, built-in refrigeration, plumbing and fixtures as the landlord’s, or require them to be left or removed. Read the sections on fixtures, alterations and end of term, and ask the landlord in writing. Doing this early avoids selling something that was never yours to take.

Dealers, auctions and other operators

A used-equipment dealer offers speed and a firm offer. An auction can reach more buyers, with fees and an uncertain result. Other operators, including people opening their first place, may want the whole kitchen as one lot. Call a few, compare their terms and ask each how fast it can remove the goods.

Time the removal

Fix a removal date that leaves time to clean and make good before you return the keys. Ask buyers to bring their own movers and proof of insurance, and keep a written record of what left and when. Your accountant can tell you how the sale of equipment is reported. This page on going concern versus equipment helps if you are still deciding.