Mexican franchise Zambrero says olé to equipment swaps

case studies

Zambrero, a quick service restaurant franchise that sells healthy Mexican food, was founded in Australia in 2005. Nine years later, there are now 45 Zambrero stores, and the franchise's triple-digit revenue growth has seen it appear 3 times in BRW's Top 5 Fast Franchise list.

It's little wonder then, that the equipment in franchisee Chris Scott's two Zambrero stores in Adelaide takes a hammering, as customers lap up the franchise's classic Mexican fare.

Mr Scott uses Silver Chef's Rent-Try-Buy funding solution as much for its ability to replace or upgrade equipment, as its huge financial benefits.

"As Zambrero in Adelaide has become more successful over time, my concerns have been less financial and more about the equipment," Mr Scott said.

"Because we have 'high-performing' sites in the city [sites that consistently exceed sales targets], the equipment is put through rigorous use on a daily basis.

"Therefore, the opportunity for equipment failure, wear and tear, etcetera, is greater than might be expected with 'normal' use.

"We need a solution that allows us to swap old equipment for new on a yearly basis, which Silver Chef is able to accommodate," he said.

Among the items regularly turned over by Chris's Zambrero stores are microwaves, toaster presses, salamanders (overhead grillers) and granita (slushy) machines.

At any time during their 12-month contract, Silver Chef customers can upgrade—swap an existing piece of equipment with one that has the same core function but is bigger or better. Or, at the end of the contract, they can replace the equipment like for like—they're not stuck paying for equipment that may have passed its prime.

Having perhaps worn out their old equipment, restaurant and cafe owners can enjoy the assurance of a fresh 12-month warranty on the new equipment and can continue enjoying the tax benefits of renting.

(At the time of writing, the number of Zambrero stores in Australia had risen to 77.)

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