Where to Source Commercial Kitchen Equipment for CPG Production

Buying commercial kitchen equipment is one of the first expensive decisions a CPG founder makes. A convection oven you can actually trust costs more than your first 12 months of insurance. A walk-in cold room costs more than your first co-manufacturing run. Get the sourcing wrong and you tie up six figures in equipment that breaks, fails inspection, or sits unused when you finally move to a co-packer six months later.

The brands that build sustainable in-house production figure out where to buy, how to inspect, and when to stop buying equipment entirely. This guide walks through the marketplaces, the categories, the financing options, and the signals that tell you it is time to graduate from owning equipment to renting capacity through a co-manufacturer.

Where to Buy Commercial Kitchen Equipment

There is a clear split between marketplaces that sell new commercial equipment with warranties and marketplaces that move used equipment with no guarantees. Most CPG founders end up buying from both.

For new equipment. WebstaurantStore is the default starting point for new commercial equipment because the selection is enormous, prices are competitive, and shipping is fast. TigerChef carries a similar catalog with strong customer service for first-time buyers. Globe Equipment Company is worth checking for mixers, slicers, and prep equipment where their own brand is reliable and the warranty support is straightforward. Restaurant Equipment World rounds out the new-equipment options, especially for refrigeration and cooking lines where you want a dealer relationship.

For used equipment. eBay Restaurant Surplus is the largest active marketplace for used commercial gear in the US. Listings range from one-owner pieces sold by closed restaurants to dealer-refurbished units with limited warranties. Regional auction houses run live and online auctions when restaurants close, which is the cheapest way to acquire industrial-grade equipment if you can pick it up locally. Facebook Marketplace and Craigslist commercial listings cover everything from desperate sellers to working pieces at one third of retail. Asset recovery firms (companies that liquidate restaurant chains, ghost kitchens, and food manufacturers) sometimes sell entire production lines as a single lot.

Why used works for early CPG production. A new 20 quart Hobart mixer runs about $7,000. A used one in working condition runs $2,000 to $3,500. A new walk-in cooler installed costs $12,000 to $25,000 depending on size. A used walk-in pulled from a closed restaurant, moved, and reassembled costs $4,000 to $8,000 plus labor. Early stage CPG margins do not support new prices on everything. Pick where to spend new (food contact surfaces, refrigeration with active warranties) and where used is fine (mixers, ovens, prep tables, racks).

Equipment Categories Every CPG Founder Should Understand

Different categories carry different risk profiles. A used prep table is almost zero risk. A used compressor-driven walk-in is meaningful risk. Knowing the category helps you decide where to spend.

Convection ovens. Used convection ovens (Vulcan, Blodgett, Garland) hold their value because they last. A 15 year old commercial convection oven that has been maintained will outproduce a brand new residential range every day. Expect to pay $1,200 to $3,500 used, $4,000 to $8,000 new. Inspect the door seals, the fan motor, and the thermostat calibration before buying.

Combi ovens. Combi ovens (Rational, Alto-Shaam, Convotherm) combine steam and convection and are the workhorse of mid-scale CPG bakeries and ready-to-eat brands. Used combis are tempting because new units cost $15,000 to $30,000. The risk is the steam generator and the control electronics. Buy used only if you can verify recent service records and get a 30 day return window.

Stand-up freezers and refrigerators. True, Beverage-Air, and Continental are the reliable brands. Used units are common because restaurants close constantly. The killer cost is the compressor. A used refrigerator with a failing compressor costs more to repair than the unit. Test the temperature at the top, middle, and bottom of the cabinet before purchase, and verify the compressor cycles correctly.

Walk-in cold storage. Walk-ins are panel systems plus a refrigeration unit. Used walk-ins exist on the market constantly because restaurants close. The panels themselves are durable and reusable. The refrigeration unit is where the failure risk lives. Plan to budget for a refrigeration technician to inspect the condenser, evaporator, and refrigerant lines before purchase, and assume you may replace the refrigeration unit even if the panels are perfect.

Kettles and steam jacketed kettles. Groen and Cleveland kettles are the standard for sauce, soup, and beverage production at small to mid scale. Used kettles are an excellent buy if the jacket is intact and the agitator works. New steam kettles run $8,000 to $25,000 depending on capacity. Used kettles in working condition run $2,500 to $8,000.

Fillers and sealers. This is where used equipment gets dangerous. Piston fillers, auger fillers, and induction sealers need to be calibrated, validated, and ideally supported by the manufacturer for ongoing parts. A misaligned filler costs you product, time, and labor every shift. If you are buying used filling and sealing equipment, buy from a dealer who refurbishes and warranties the unit, not from a private seller. The premium is worth it.

Cost Effective Acquisition Strategies

Cash purchases are not the only way to acquire equipment. The right financing structure can keep your runway intact while you scale production.

Dealer financing. Most major equipment dealers (WebstaurantStore, TigerChef, regional dealers) offer financing through partners like Crest Capital or Balboa Capital. Terms typically run 36 to 60 months at rates between 8 and 15 percent depending on credit. Dealer financing is the easiest path for new equipment because the application happens at checkout.

Lease to own. Lease to own structures let you take possession of equipment with a small down payment, pay monthly, and own the equipment at the end of the term (often with a $1 buyout). The total cost is higher than cash, but you preserve working capital for inventory and trade spend. This is often the right move for early stage brands where every dollar of cash matters.

Equipment auctions from closed restaurants. Auctions are the single biggest opportunity to buy commercial grade equipment at 20 to 40 percent of retail. Sign up for auction alerts with major regional auctioneers in your area. Inspect every lot in person on preview day. Bring a refrigeration technician to walk through with you if you are bidding on refrigeration. Auctions are buyer beware, and removing the equipment is your responsibility, so factor rigging and transport into your bid.

Asset recovery firms. Companies that liquidate restaurant chains, food manufacturers, and ghost kitchens sometimes sell entire production lines as a package. If you are setting up production for a new product line, buying a single coordinated lot from a closed operation is often cheaper than assembling the same equipment piece by piece. Ask the asset recovery firm whether they will sell partial lots or only whole lines.

SBA loans for larger equipment investments. If you are spending more than $50,000 on equipment as part of a broader expansion (new facility, new co-packing arrangement, scale up of in-house production), an SBA 7(a) or 504 loan can finance the equipment over 10 years at favorable rates. The application takes 60 to 90 days, so start early.

Inspection Checklist When Buying Used

Used equipment is only a deal if it works. The inspection checklist below catches the most common problems before money changes hands.

Refrigerant lines and refrigeration components. Look for oil stains on the compressor, evaporator coils, or refrigerant lines. Oil staining indicates a refrigerant leak, which means the unit will not hold temperature. Listen to the compressor cycle on, run for a few minutes, and cycle off. Compressors that struggle to start, run continuously without cycling, or make grinding noises are about to fail.

Gas certifications and gas connections. Commercial gas equipment needs to be certified for the gas type it is using (natural gas vs propane). Verify the data plate matches your facility's gas service. Check for visible damage to gas lines, valves, and burners. If the unit was disconnected for transport, factor in the cost of a licensed gas technician to reconnect and pressure test before first use.

NSF rating. Equipment used in food production needs to carry an NSF rating (or equivalent) for the surface and use case. NSF certified equipment has passed sanitation, material safety, and design testing. Unrated equipment can fail health department inspection and force you to replace it. Verify the NSF mark on the data plate before purchase, especially for food contact surfaces.

Available service support. Call the manufacturer's parts line before buying any used piece. Ask whether they still stock parts for that model number and serial number. Ask whether there is an authorized service technician in your area. Equipment without parts support is equipment with a clock ticking on its useful life.

Power requirements and electrical condition. Verify the voltage and phase requirements on the data plate against your facility's electrical service. Inspect power cords and cables for damage. Check that contactors, relays, and control boards look clean and free of corrosion.

Documentation and service records. Ask the seller for service records, original purchase invoices, and any inspection reports. Sellers with documentation are sellers who maintained their equipment. Sellers with no paperwork are selling unknowns.

All of that equipment investment only pays off if the product it makes finds shelves, which is why production planning and retail pipeline have to move together.

Shared Commercial Kitchen vs Owned Equipment

Before you buy anything, consider whether you should be buying at all. Shared commercial kitchens (sometimes called commissary kitchens or food incubators) rent production capacity by the hour or month. The economics matter.

When shared kitchens make sense. If your monthly production runs less than 60 to 80 hours, a shared kitchen is almost always cheaper than owning. You pay only for the time you use. You skip the capital expense, the maintenance, the utilities, and the lease on dedicated space. You also get access to equipment (combi ovens, kettles, packaging lines) that would cost you $50,000 or more to acquire individually.

When ownership makes sense. If your monthly production exceeds 100 hours, your product requires specialized equipment a shared kitchen does not have, or your production schedule is unpredictable (overnight runs, weekend production, equipment that needs to stay set up between runs), owning equipment starts to make sense. The math tips when the hourly cost of a shared kitchen exceeds the amortized cost of ownership plus space.

The hybrid approach. Many early stage brands use a shared kitchen for initial production, then graduate to owning a small in-house facility for one or two SKUs while continuing to use a shared kitchen for testing new products. The shared kitchen becomes your R&D space. Your owned facility becomes your production line.

When to Graduate to a Co-Packer

At a certain scale, in-house production stops making sense regardless of how good your equipment is. Recognizing the transition matters because brands that hold on to in-house production too long burn cash, miss orders, and lose retail accounts to brands that scaled production correctly.

Signs you need a co-packer. Your team is working 60 plus hour weeks just keeping up with current orders. You are turning down PO opportunities because you cannot produce fast enough. Your quality is inconsistent because everyone is exhausted. Your unit economics on production labor are eating your margin. Any one of these signs is a warning. All four together mean you should have transitioned six months ago.

What a co-packer changes. Co-packers run dedicated production lines, hire trained production staff, and amortize equipment costs across multiple brands. Their per unit cost is typically 30 to 50 percent below what you can produce in-house at sub scale. You give up some control. You gain capacity, consistency, and the ability to focus on sales, marketing, and product development.

The transition window. Plan a 4 to 6 month transition from in-house to co-packed production. Find the co-packer, qualify them, run a test batch, validate the test batch in retail, transfer your production schedule gradually. Selling your in-house equipment too early leaves you without a backup. Holding it too long ties up cash.

Putting It All Together

Sourcing commercial kitchen equipment is not a one-time event. It is a series of decisions over the life of your brand. Buy used where the risk is low and the savings are real. Buy new where the warranty and service support matter. Use shared kitchens until you outgrow them. Move to a co-packer when in-house production stops scaling. At every step, the goal is the same: spend just enough on production to support the next revenue milestone, and put every other dollar into building the brand and the retail distribution that justifies the production in the first place.

The brands that thrive in CPG are the ones that treat production as a means to an end. The end is retail velocity. The end is shelf placement. The end is repeat purchase. Your equipment is in service of those outcomes, not the other way around.