This Business Energy Comparison guide will cover how much energy an average restaurant uses every year. We’ll also provide some tips for cutting restaurant energy costs so you can get the most out of your energy consumption and save money.
How Much Energy Does An Average Restaurant Use Every Year?
How To Estimate Utility Costs For A Business
The energy rates you are charged for your business will depend on a number of factors, including:
- The size of the restaurant
- The restaurant’s credit rating
- The location of the restaurant
- The business type (there are different types of catering businesses)
- The restaurant’s annual energy usage
- Wholesale energy prices
This information can help you calculate your business gas and electricity usage for the year and avoid any unexpected surprises.
Most of the costs included in your energy bill will be based on how much electricity and gas you consumed the previous month. This includes the unit cost (cost per kWh) and the standing charge (fixed daily minimum amount). However, these fees will also be accounted for:
This is how much your energy supplier pays for the gas and electricity it provides you.
Some energy suppliers are obliged to participate in government-led environmental incentives.
This is a tax on goods and services depending on the amount of energy used. The standard rate is 20%.
Your energy supplier has to pay for transporting energy to your premises.
This is how much it costs your energy supplier to operate and run your account.
How To Save Money On Energy
Business energy bills are certainly not cheap but there are steps you can take to reduce your restaurant’s energy consumption.
Here are some ways you can cut restaurant energy consumption for lower monthly bills:
Conduct an energy audit
This is essentially an inspection of your restaurant’s energy efficiency (the use of less energy to perform the same task). It can help you pinpoint areas where you could save money on your annual energy bills.
By knowing where to make changes, you can make significant energy savings and slash the price of your annual energy bills.
Use energy-efficient lighting
Switching to more energy-efficient lighting can be a quick and easy way to lower the amount of total energy consumed every year. This includes LED bulbs and motion-activated lamps.
Other energy efficiency measures include replacing high-energy equipment and making use of natural light wherever possible.
Turn off equipment when not in use
One of the biggest energy wasters in commercial kitchens is keeping equipment on when not in use.
Some restaurants keep extractor fans on overnight or between services. This can produce up to 10 tons of carbon and could be the biggest contributor to your high energy bills.
Service equipment regularly
Old equipment is likely to break down more and often requires more energy to keep operating. This is especially true for appliances with a high energy rating, such as a ventilation system or heating and cooling equipment.
By servicing equipment regularly, you can ensure everything is in good working order. This can prevent you from wasting money on faulty equipment.
Switch energy providers
Switching energy providers can help you save money on your annual energy bills. There are business energy brokers and consultants out there that can help you if you’re struggling to find a good deal.
Some business utility providers have better deals than others and you might discover you’ve been paying more than you should be.
Running a small or medium business is becoming increasingly difficult for companies in the hospitality industry. This is especially true in the UK where rising energy prices are forcing some restaurants to close their doors for good.
With our helpful guide, you can estimate how much your annual energy usage is likely to be. This can help you prepare your finances and plan ahead for further price rises. Compare restaurant energy prices with Business Energy Comparison.
Frequently Asked Questions
Restaurants use a lot of energy because of the number of appliances needed to cook, heat, and store food. Heating, lighting, and ventilation can also lead to high business electricity and gas bills. Total usage depends on the size of the restaurant.
Typically, cooking, heating, and refrigeration make up 80% of a restaurant’s total business electricity and gas expenditure for the year. These are the areas you should target to cut business energy prices.
There are several steps you can take to reduce your restaurant’s carbon footprint. For example, switch to energy-efficient appliances and lighting, reduce energy wastage, and only open fridge doors when needed. This will lead to increased energy savings.
Business Energy Comparison
Corby Innovation Hub,
Corby, NN17 1NN
0800 007 4001
Trading name of Utility Bidder