Jye The Lih (JTL) has launched a commercial induction stove subscription system to reduce the initial equipment costs of restaurants and provide instant maintenance services to extend the service life of the product.
Commercial induction stoves used in hot pot restaurants generally have a buyout system. A store’s operational efficiency will decrease due to longer repair and delivery times when a product malfunctions.
Restaurants enjoy operational advantages thanks to leasing mechanism
JTL has launched a subscription system for commercial induction stoves. Restaurant owners can enjoy the “right to use” induction stoves by paying a monthly fee. “Leasing instead of owning” can not only reduce an owner’s equipment investment costs in the early stages of opening a restaurant, but also, if a malfunction occurs during operation, the restaurant can obtain immediate repair or replacement services through JTL’s after-sales service team.
Extending the service life of products and parts
The faulty products requiring replacement are examined, fixed, and serviced at the factory to prolong their lifecycle and be used in the next service round. This model has been adopted by Taiwanese chain restaurant groups to reduce their operational risks and costs.
Benefits
- Currently, the company has cooperation agreements with 130 catering companies; in addition, approximately 7,500 commercial induction stoves have been put into service, generating NT$8.91 million in revenue.
- The subscription system is estimated to reduce costs by 20% when compared to the buyout system [1].
[1] The savings include repair costs, parts replacement costs, and downtime costs due to failures.