A Deeper Dive How tariffs will affect restaurant equipment costs
May 7, 2025
Neal Sherman, the founder of TagX Brands, shares insights into how rising tariffs are reshaping the restaurant equipment industry. With tariffs hitting an average of 27%, restaurants are forced to consider used equipment as a cost-effective alternative. Sherman discusses the increasing demand for his company's offerings amid economic uncertainty, shedding light on the challenges like labor shortages and shifts in consumer preferences towards budget-friendly dining. His expertise brings clarity to navigating this evolving landscape.
AI Snips
Chapters
Transcript
Episode notes
Tariffs Impact on Restaurant Costs
- Tariffs have raised average import taxes to 27%, the highest in over a century.
- This will mainly impact restaurant equipment costs more than food prices for most restaurants.
From Liquidation to Industry Leader
- Neal Sherman started TagX by helping retailers liquidate unused equipment.
- The company grew into the biggest online auction platform for used restaurant equipment.
Industry Chaos Driving Change
- The restaurant industry faces chaos from competition, tariff policies, labor pressures, and automation.
- These forces create a highly dynamic environment needing innovative equipment solutions.