Restaurant Equipment Leasing vs. Buying in Victoria, BC

Victoria’s hospitality scene is thriving—with new restaurants, cafés, food trucks, and boutique eateries opening regularly across the city and surrounding areas.

Whether you're expanding to a second location in Cook Street Village, launching a new concept in downtown Victoria, or simply replacing aging back-of-house gear, one question always comes up:

“Should I lease or buy my new kitchen equipment?”

With rising costs for commercial ovens, walk-in coolers, dishwashers, and even point-of-sale systems, choosing the right financing structure can make or break your margins.

This guide breaks down the pros, cons, and cash flow differences between leasing and buying your next round of equipment.

What Kind of Equipment Can Be Financed or Leased?

At Mehmi, we help Victoria-based foodservice businesses finance:

• Commercial ovens, stoves, and fryers
• Refrigeration units and freezers
• Dishwashers and glasswashers
• Ventilation and fire suppression systems
• POS systems, prep tables, and display cases
• Smallwares bundles and build-out equipment

✅ New and used equipment eligible
✅ Financing available for private sales and full kitchen packages

Option 1: Buying Equipment with a Loan

If you choose to buy outright with a business equipment loan, you:

• Own the asset once the loan is repaid
• Can claim depreciation (Capital Cost Allowance)
• Pay off over 2–7 years with fixed payments
• May need a down payment (typically 10%–25%)
• Can bundle install, delivery, and warranties

Best for:

Long-term ownership, equipment that lasts 7+ years, or resaleable assets (e.g. walk-in coolers, fryers)

Option 2: Leasing Restaurant Equipment

Leasing gives you access to equipment without upfront ownership. This means:

• Lower monthly payments
• Payments may be 100% deductible as an expense
• Ability to upgrade or swap equipment more easily
• End-of-term options: buy, renew, or return
• Great for rapidly growing or seasonal businesses

Popular lease types:

• Operating Lease – return at end (true lease)
• Finance Lease ($1 Buyout) – own it after lease ends

Explore: Equipment Leasing & Loans

Leasing vs. Buying: Side-by-Side in Real Numbers

Case Study: Café Expansion in Victoria’s Inner Harbour

Business: Established espresso café adding second location near Johnson Street
Need: Finance $45K in kitchen gear + espresso machines + cold storage
Challenge: Wanted to preserve working capital for patio buildout
Solution:

• Structured a 60-month lease with $1 buyout
• Included installation and insurance in the lease
• First payment deferred 60 days for soft opening buffer

Result: Smooth launch, kept $10K+ in hand, reached profitability in month 4

When Leasing Wins

✅ You want low upfront costs
✅ You’re expanding or renovating quickly
✅ You plan to upgrade often
✅ You want simplified tax treatment

When Buying Wins

✅ You plan to keep equipment for 7+ years
✅ You want to build equity in fixed assets
✅ You have a clear idea of your long-term needs
✅ You prefer to avoid lease-end decisions or balloon payments

Final Word: Don’t Let Equipment Costs Delay Your Vision

Victoria’s food scene is full of opportunity—but only if your kitchen can deliver.

Whether you’re launching your first venue or upgrading an iconic one, Mehmi helps restaurants in BC make smart equipment decisions that match their growth goals and cash flow reality.

Need help deciding between leasing or buying your next kitchen upgrade?
Talk to a credit analyst or use our calculator to compare monthly payment options today.

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