Equipment Budget Justification

Yixi Liu
FSM 122
There has been a significant increase of customers in our restaurant in recent
three months. More and more customers want steamed food because they think it will
be healthier than fried food. Since our steamer is very old and does not have enough
capacity to handle the peak period, I want to replace it with a Combi Oven. The
Combi Oven can roast or bake with both moist and dry heat; it also can serve as a
steamer. With the Combi Oven, we can add more options for our menu and may
include some steamed food. I hope my research on the following Combi Oven can
convince you on purchasing this equipment.
Model Comparison.
The models that are being compared are the Alto-Shaam CTP7-20G Gas
Combination Oven, the Alto-Shaam CTP7-20E Electric Combination Oven, Base
Efficiency combi ovens and Energy Star combi ovens.
Results.
1. There are three models of electric Combi Oven. The Alto-Shaam CTP7-20E
Electric Combination Oven has 14 pan capacity using electric as main power. The
initial cost is $6575.00, the maintenance costs are $125 per year, the annual energy
consumption is 10828 kWh with 2.5 kW of average energy consumption rate. The
annual energy cost is $1963 and annual water cost is $31. Using the model will result
in $23556 of lifetime energy cost and $372 of lifetime water cost, so the total lifetime

cost is $32003. The idle energy rate is 1.51 kW in convection mode and 1.18 kW in
steam mode. The model has 80% of energy efficiency and 140 lbs/h of production
capacity in convection mode and 59% of energy efficiency and 171 lbs/h of
production capacity in steam mode. The base efficiency oven has 14 pan capacity as
well. The initial cost is $5225.00, the maintenance costs are $125 per year, the annual
energy consumption is 30874 kWh with 7.0 kW of average energy consumption rate.
The annual energy cost is $5597 and annual water cost is $1004. Using this model
will result in $67164 of lifetime energy cost and $12048 of lifetime water cost, so the
total lifetime cost is $85937. The idle energy rate is 3.00 kW in convection mode and
10.00 kW in steam mode. The model has 65% of energy efficiency and 80 lbs/h of
production capacity in convection mode and 40% of energy efficiency and 100 lbs/h
of production capacity in steam mode. The energy efficient oven also has 14 pan
capacity. The initial cost is $7735.00, the maintenance costs are $125 per year, the
annual energy consumption is 19373 kWh with 4.4 kW of average energy
consumption rate. The annual energy cost is $3512 and annual water cost is $430.
Using this model will result in $42144 of lifetime energy cost and $5160 of lifetime
water cost, so the total lifetime cost is $56539. The idle energy rate is 2.00 kW in
convection mode and 5.00 kW in steam mode.The model has 70% of energy
efficiency and 100 lbs/h of production capacity in convection mode and 50% of
energy efficiency and 120 lbs/h of production capacity in steam mode.
Comparing these three models, it is obvious that the Alto-Shaam CTP7-20E Electric
Combination Oven has the highest energy efficiency and production capacity in both

convection and steam mode. The Alto-Shaam CTP7-20E Electric Combination Oven
also has the lowest total life time cost, with higher initial cost than the base efficiency
oven but lower than the energy efficient oven. All of these three models can cook
200.0 lbs of food per day, so all of these three models can handle 200 servings of 8
ounces of steamed or convection foods during 2 hour peak period.
2. There are three models of gas Combi Oven as well. The Alto-Shaam CTP7-20G
Gas Combination Oven has 14 pan capacity using gas as main power. The initial cost
is $8773.00, the maintenance costs are $120 per year, the annual energy consumption
is 482 Therms with 11010 Btu/h of average energy consumption rate. The annual
energy cost is $379 and annual water cost is $250. Using the model will result in
$4548 of lifetime energy cost and $3000 of lifetime water cost, so the total lifetime
cost is $17761. The idle energy rate is 5950 Btu/h in convection mode and 5456 Btu/h
in steam mode. The model has 59% of energy efficiency and 142 lbs/h of production
capacity in convection mode and 47% of energy efficiency and 250 lbs/h of
production capacity in steam mode. The base efficiency oven has 14 pan capacity as
well. The initial cost is $6679.00, the maintenance costs are $120 per year, the annual
energy consumption is 1572 Therms with 35890 Btu/h of average energy
consumption rate. The annual energy cost is $1237 and annual water cost is $1004.
Using this model will result in $14844 of lifetime energy cost and $12048 of lifetime
water cost, so the total lifetime cost is $35011. The idle energy rate is 15000 Btu/h in
convection mode and 45000 Btu/h in steam mode. The model has 35% of energy
efficiency and 80 lbs/h of production capacity in convection mode and 20% of energy

efficiency and 100 lbs/h of production capacity in steam mode. The energy efficient
oven also has 14 pan capacity. The initial cost is $10065.00, the maintenance costs are
$120 per year, the annual energy consumption is 774 Therms with 17673 Btu/h of
average energy consumption rate. The annual energy cost is $609 and annual water
cost is $430. Using this model will result in $7308 of lifetime energy cost and $5160
of lifetime water cost, so the total lifetime cost is $23973. The idle energy rate is 8000
Btu/h in convection mode and 15000 Btu/h in steam mode. The model has 44% of
energy efficiency and 100 lbs/h of production capacity in convection mode and 38%
of energy efficiency and 120 lbs/h of production capacity in steam mode.
Comparing these three models, it is obvious that the Alto-Shaam CTP7-20E Electric
Combination Oven has the highest energy efficiency and production capacity in both
convection and steam mode. The Alto-Shaam CTP7-20E Electric Combination Oven
also has the lowest total cost, with higher initial cost than the base efficiency oven but
lower than the energy efficient oven. All of these three models can cook 200.0 lbs of
food per day, so all of these three models can handle 200 servings of 8 ounces of
steamed or convection foods during 2 hour peak period.
Recommendation.
Based on the comparing results of these models, I would recommend to
purchase the Alto-Shaam CTP7-20G Gas Combination Oven. The total cost of this
model is only $17761, so it is the most inexpensive model among these six choices.
Although it is not as efficient as the electric model and it has lower production
capacity; but it is still enough to handle the peak period in our restaurant.