Markets
Friday, September 25, 2026
The Company Chronicle

Checked 25 September 2026

Where restaurants actually buy equipment, food and packaging

Six ways to buy the same walk-in, and the one difference that decides it is not price. A working guide to Restaurant Depot, Costco Business Center, the online dealers, the broadline distributors and the auction market.

Almost every guide to this compares suppliers on price. Price is the least stable thing about them and the easiest to get wrong. What actually separates these channels is who lets you in, who delivers, and who lets you pay later.

The six ways to buy

Cash and carry warehouses

Restaurant Depot, Costco Business Center, US Foods CHEF'STORE

Food, smallwares, disposables, some equipment. You drive there, you load it, you pay at the register.

  • Works when: Lowest food cost per case, no order minimum, and you can go today when you are short.
  • Costs you: Your time and a vehicle, and you pay in full at the till. There is no float.

Online equipment dealers

WebstaurantStore, KaTom, Central Restaurant Products, The Restaurant Warehouse

New equipment and smallwares, shipped. The deepest catalogues in the trade.

  • Works when: Specs, dimensions and model numbers on the page, so you can check a fit before you buy. KaTom also does kitchen layout work and shows financing on the product page.
  • Costs you: Freight on anything heavy, and a liftgate and inside delivery are usually extra. Get the delivered price, not the item price.

Broadline distributors

Sysco, US Foods, Gordon Food Service, and regional houses

Food, paper and chemicals delivered on a route, on an account.

  • Works when: They deliver, they carry your order history, and an account can come with credit terms. That is the part that matters, and we come back to it below.
  • Costs you: Order minimums, a delivery window you do not control, and case prices that need watching.

Auctions and liquidations

PCI Auctions, TAGeX Brands, BidSpotter, AuctionFactory, West Auction

Everything out of a restaurant that closed. Ranges, fryers, refrigeration, prep tables, dish machines, furniture.

  • Works when: The single biggest saving available on equipment, often by a wide margin. Whole kitchens sell at once.
  • Costs you: Sold as is, no warranty, you arrange removal on a deadline, and buyer premiums are added on top.

Used dealers

Local used restaurant equipment dealers, Restaurant Equipment World

Reconditioned equipment with some form of check or limited guarantee.

  • Works when: Cheaper than new, and someone has actually tested it. A middle ground between auction risk and new prices.
  • Costs you: Stock is whatever came in. You take what exists, not what you specified.

Rental and lease

Ice machine and beverage programs, linen and mat services, equipment leasing companies

Equipment you never own, usually with service included.

  • Works when: No capital out, and someone else fixes it. For ice machines and beverage gear the service is often the whole point.
  • Costs you: Costs more over the life of the asset, and the contract term is the thing to read, not the monthly.

Who will actually let you in

WhereThe gateWhat they want
Restaurant Depot Free membership, but you must prove the business A business licence or IRS letter showing you own the business or non-profit, or your sales tax licence if you are a reseller. New York needs a Certificate of Authority; Connecticut, Indiana, Massachusetts and Pennsylvania need a FEIN; selling alcohol needs your state liquor licence. You apply online, then finish in person at your branch. If you do not qualify, most items are still reachable through Instacart.
Costco Business Center No business licence needed at all This is the part people get wrong. Any Gold Star or Executive Costco membership gets you through the door. You only need a Business Membership, $65 a year or $130 for Executive Business, if you want to buy for resale or tax exempt.
Broadline distributors An account, and they check you You are opening a credit account, so expect the usual: how long you have traded, volume, and often a personal guarantee.
Auctions Anyone can register Register, get approved to bid, and be ready to pay and remove on their schedule.

The thing that actually decides it

Put two of these side by side and the obvious comparison is food cost. That is the wrong comparison, and it is why owners switch and then wonder why the month felt tight.

A cash and carry warehouse takes your money at the register. A distributor account can let you pay later. Those are not the same transaction even at an identical price. When you buy on terms, the distributor is funding your inventory between delivery and the day you pay, and you are selling that food before the money leaves your account.

So an owner who moves from a distributor to a cash and carry to save a few points on cases does two things at once. They lower the food cost, which shows up in the P&L and looks like a win. And they pull their payment forward by however many days the account allowed, which shows up nowhere except the bank balance. The first is visible. The second is what causes the payroll week that does not work.

That does not make cash and carry wrong. Plenty of operations run on it well, and the case savings are real. It means the comparison has two columns, not one: what it costs, and when you pay. Work out what moving the payment date does to your cash position before you move it, and if you are not sure how, our calculators will do the arithmetic.

New, used or auction

DecisionWhen
Buy newAnything with a warranty you will actually use, anything gas or refrigeration that has to pass inspection, and anything a manufacturer must certify.
Buy used from a dealerStainless prep tables, shelving, sinks, work surfaces. Things with nothing to go wrong and no efficiency to lose.
Buy at auctionWhen you are building a kitchen from scratch and have time, a truck and somewhere to store it. This is where the big saving lives, and it needs all three.
Never buy usedAnything where a failure closes you. If a single ice machine or walk-in going down stops service, that is not the place to save.

Are you a business owner who could use the capital?

Most of what is on this page is a purchase you have to fund before it earns anything back. If that is the part holding you up, this is the funder we recommend, and it costs nothing to ask what you qualify for.

More on the products themselves: equipment financing, or what lenders look at in restaurants.

Suppliers named here are companies owners in this trade use; we are not paid by any of them and this is not a ranking. Membership rules and fees were checked against each company's own pages on 25 September 2026 and can change, so confirm before you drive anywhere. Nothing here is financial advice.