Structural Concepts Return on Investment
Structural Concepts manufactures refrigerated and heated display cases and merchandisers. The company commissioned Intertek Laboratories and the National Food Lab to compare its heated and chilled cabinets with those of competing manufacturers to evaluate performance and total cost of ownership. The study compared acquisition cost, setup time, energy consumption, cleaning labor, product spoilage, and long-term operating expenses.
Key Takeaways:
- Consider total cost of ownership when purchasing chilled or heated cabinets
- Energy use, maintenance, and product loss contribute to total cost of ownership
- Structural Concepts models outperform leading cabinet manufacturers
"In each of the equipment categories studied, acquisition price was similar in at least two of the three manufacturer models, while the difference in the five year total cost of ownership widened among manufacturers, demonstrating that an acquisition price comparison doesn’t provide the whole story." – Structural Concepts, Total Cost of Ownership Report
Energy Consumption
Although Structural Concepts open-air coolers had the highest acquisition price, their cost of ownership was more than $1,000 lower over five years than comparable Hussmann Corp. and Turbo Air units, primarily due to lower energy consumption. Structural Concepts grab-and-go merchandisers had the lowest kWh consumption compared to competing models.
Energy savings were influenced by:
- Refrigeration system design
- Refrigerant type
- Coil design
- Defrost water burn-off method
- Air-curtain engineering
- Internal airflow management
Cleaning & Maintenance
Cleaning display cabinets often requires frequent, time-intensive tasks that raise labor costs. Shelf construction, recommended cleaning procedures, and cabinet materials all impact annual cleaning costs, while serviceability affects maintenance costs. Structural Concepts surpassed most competitors in hot and cold categories for yearly cleaning cost savings.
Product Shelf Life
Product preservation results were equal among refrigerated cases, while heated cabinet testing provided varied results. This hot food quality test evaluated items held in each cabinet, including breakfast sandwiches, spinach artichoke soufflé, pizza, fried chicken strips, pancakes, and breakfast plates. The items were taste-tested at 30-minute intervals until they were deemed unacceptable.
Structural Concepts warming displays offered the longest hold times compared to Federal Industries and RPI Industries units in the following categories:
- Breakfast sandwich
- Spinach artichoke soufflé
- Pizza
- Breakfast plate
Although spoilage rates vary based on product type and ambient conditions, Structural Concepts cabinets provide strong product preservation performance that could reduce product loss and restocking labor costs by hundreds of thousands of dollars per year.
Conclusions
This report argues that operators should look beyond the initial equipment price tag and inspect cost-of-ownership features such as startup costs, energy use, labor requirements, product shrinkage, and cleaning costs to evaluate total ROI. Based on the study, Structural Concepts offers the lowest total cost of ownership among the brands evaluated, even with a higher initial price than some competitors.
Structural Concepts cabinets feature:
- Lower energy use
- Improved product holding performance
- Less heated cabinet spoilage
- Reduced labor needs
- Lower maintenance demands
How Does Structural Concepts Achieve Greater ROI?
Structural Concepts chilled cabinets feature proprietary, self-contained Breeze refrigeration systems that use energy-efficient R-290 refrigerant. Cleanability features include E-coated evaporator coils that provide complete corrosion protection and magnetic air filters, which can be quickly handwashed in a dish sink. Some refrigerated displays offer add-ons like Clean Sweep® automatic condenser coil cleaners to further reduce cleaning costs.
Fabricated in-house, the brand's heated cabinets offer independently controlled shelves with programmable settings and stainless steel interiors that help retain heat. The cabinets also provide dual heating from above and below product, which enables a reduced lower-surface temperature, minimizing product dryness.
FAQ - Structural Concepts Display Cabinets
What does Structural Concepts manufacture?
Structural Concepts produces refrigerated, ambient, and heated displays for self- or full-service merchandising, including open-air merchandisers, display cabinets, countertop cabinets, islands, and end caps.
What kinds of operations benefit from Structural Concepts products?
Structural Concepts displays benefit various kinds of operations, including grocery stores, convenience stores, cafeterias, schools, entertainment venues, and more.
What hidden costs should operators consider when buying a display case?
When purchasing a case, look for information on installation requirements, energy usage, cleaning steps, and repair needs. These factors may prove costly over time.
How do I calculate total cost of ownership on merchandising equipment?
Determine yearly operational costs by adding delivery and installation fees, average energy cost, maintenance and cleaning costs, labor to operate, and product loss. Calculating these costs during the first year of ownership can help operators estimate long-term ROI.
How do display cases impact labor costs in foodservice operations?
Display cases that are difficult to clean, can't hold food for long, or require constant adjustments can raise labor costs. Finding a model that's efficient and reliable is one of the best ways to reduce labor costs.
