Discover whether you could be saving on what you pay for your restaurant’s energy and compare business gas and electricity prices. See the best deals from UK suppliers with Business Energy Comparison.
All businesses in the UK are being impacted by the global increase in energy prices. The hospitality sector is feeling the impact more than most. This is due to the energy-intensive nature of hospitality businesses.
Fortunately, there are many ways in which restaurants can save money on their utility bills.
We’re going to take a look at some of the best ways that you can reduce energy wastage in your restaurant. We’ll also examine where most energy consumption occurs in restaurants and how you can estimate the cost of your bills.
Energy consumption varies widely depending on several different factors. Different-sized hospitality businesses use differing amounts of energy. For example, a small cafe will most likely use less gas and electricity than a big restaurant.
However, energy bills usually account for between 4% to 6% of the operating costs of hospitality businesses. The Carbon Trust established these business energy figures. They also state that the catering industry in Britain uses around 20,600 million kWh of energy every year.
The Carbon Trust also has figures on the lack of energy efficiency measures in most restaurants. It estimates that in many kitchens, only about 40% of energy consumption is used for preparing and storing food. The remaining 60% is wasted and dispersed into the kitchen as heat.
The amount of energy used to produce a meal also varies depending on the type of catering business. Again, the Carbon Trust has useful figures related to this.
They state that the energy costs of producing a meal in a snack bar are 5p per meal. In a steakhouse, this goes up to 22p per meal, and in a hotel restaurant, it’s 45p per meal.
There are several factors that influence how much energy a restaurant uses. The amount of electricity used depends on the restaurant’s equipment, its size, and the energy efficiency measures in place.
On average, a small business in the catering industry uses between 15,000 kWh and 25,000 kWh of electricity in a year. A medium-sized business uses between 30,000 kWh and 50,000 kWh of electricity in a year. Still, this is just an average, and many busy restaurants use much more than this.
Clearly, larger hospitality businesses use more electricity in a year than smaller ones. This means that their electricity prices are higher than smaller businesses.
The ‘International Journal of Low-Carbon Technologies’ published a study of 14 pub-restaurants in the UK. It revealed several statistics about the energy consumption in these businesses.
On average, these businesses use 70 kWh of electricity for refrigeration each day. They also used 37 kWh of electricity for their grills and 35 kWh for their combination ovens each day.
It’s not hard to see how business electricity bills can start to mount up with statistics like these.
It’s not a question that can be answered definitively – and that’s because every business is different. The cost of your bill is dependent on how much electricity your business uses. We’ve put together a useful table detailing how much the average business could expect to pay based on current market prices.
Disclaimer: Due to volatility within the energy market, prices can change on an hourly basis meaning that the prices you’re quoted are different from the averages shown. Prices may also vary according to your meter type and business location.
Most businesses in the UK use gas to power their water heating and central heating. This alone accounts for a high percentage of energy consumption. Hospitality businesses also use gas for cooking which increases their gas consumption even more.
In most restaurants, cooking is the primary source of gas consumption. It’s estimated that small businesses use between 15,000 kWh and 30,000 kWh of gas each year. For medium-sized businesses, the average is between 30,000 kWh to 65,000 kWh of gas per year.
However, businesses in the catering industry use more gas than this each year on average. For most restaurants, there’s no avoiding high volumes of gas usage. This is a staple part of the catering industry.
It’s not a question that can be answered definitively – and that’s because every business is different. The cost of your bill is dependent on how much gas your business uses. We’ve put together a useful table detailing how much the average business could expect to pay based on current market prices.
Disclaimer: Due to volatility within the energy market, prices can change on an hourly basis meaning that the prices you’re quoted are different from the averages shown. Prices may also vary according to your meter type and business location.
Being able to estimate your annual energy bills is very important. This allows you to plan financially for the year and identify areas where you could make energy savings. Business energy usage varies depending on the type of catering business, but there are some average figures that can be used.
On average, small catering businesses pay between £2,367 and £3,660 each year for electricity. Medium-sized businesses pay around £3,774 to £7,234 for their electricity each year.
An average small business pays around £820 to £1,458 a year for their gas usage. The average medium-sized business pays around £1,458 to £2,239 a year. As you can see, electricity usage costs most catering businesses more each year than gas usage.
There are two important things to pay attention to when estimating your business energy bills. The first is the unit cost that your energy provider charges. This is how much they charge you for each kWh of energy that you use.
The second is the standing charge that your energy supplier charges. This is a daily charge. It covers the costs of maintaining the national grid and transporting energy to your restaurant.
To accurately estimate your business energy bills, you need to know how much you’re charged for each. You also need to have a rough idea of how much energy your business uses.
If you run a new business, then you’ll probably have to wait until you receive your first energy bill to work out how much energy your restaurant uses. This will then give you a good idea of how much your bills will be going forward.
The first step you can take to reduce energy usage costs is to ensure you have the best business rates possible. This may involve switching to a different tariff, staying with the same supplier, or switching suppliers completely.
Once you’ve done this, there are many other ways in which you can reduce energy wastage in your business. By making your restaurant more energy efficient, you will save money and also reduce the carbon footprint of your business.
If you follow the steps below, you could reduce your restaurant’s energy consumption by up to 40%. Start your business electricity comparison and compare business gas prices with our energy experts.
Other than cooking, central heating systems in restaurants account for most of the gas usage. So, proper management of the heating in your restaurant is one of the best ways to make energy savings.
Avoid adjusting the temperature in your restaurant throughout the day. Instead, you should try and maintain a consistent temperature. Keeping the temperature constant is far more energy efficient than regularly changing it.
You should also consider using timed thermostats in your restaurant. This will mean you have greater control over the heating schedule, and your energy wastage will be reduced. If your restaurant uses air conditioning, you can also use timers for these units.
A great way of reducing your business electricity costs is to replace any standard lightbulbs with CFL lightbulbs. These bulbs use up to 75% less electricity than standard bulbs do. This will translate to big savings on your electricity bills.
Installing occupancy sensors in your restaurant could also bring down your electricity consumption by 30% to 50%. These will detect when a room is unoccupied and turn the lights off automatically. They’re best suited to rooms like storerooms, toilets, cellars, and function rooms.
Water usage in restaurants is particularly high. This isn’t surprising considering the number of dishes that need to be washed each day. Fortunately, there are several simple ways to reduce your water usage and save money on your bills.
One thing to consider is adding flow regulators to the taps in your restaurant. This will reduce the amount of water that your taps use when they’re turned on. It reduces overall consumption and leads to reduced bills.
Another tip is to convert your toilets into low-flush basins. This can be achieved without any extra costs. To do it, simply place a heavy object like a brick into the cistern. This causes water to be displaced and reduces the amount of water needed for each flush.
Ensuring proper insulation is one of the most important energy efficiency measures for any business. Something as simple as installing double-glazed windows can reduce the amount of heat wastage in a restaurant by around 26%.
It’s also estimated that around 35% of the heat in a restaurant is lost due to poor draught-proofing. Although draught-proofing and window replacements involve upfront costs, you’ll save lots of money in the long run as a result.
If you properly insulate the walls in your restaurant, you can reduce heat wastage by 9%. If you fully insulate the roof, then you can reduce wastage by around 22%.
Insulating the pipes in your restaurant is also important. Lots of the heat used to warm up water is lost through poorly insulated pipes. If you address this issue, you can effectively reduce heat waste in your restaurant.
All boilers in your restaurant should be serviced regularly to maintain their efficiency. If your restaurant is currently using old boilers, then it may be worth considering replacing them. Newer models are far more efficient than older ones and will save you money in the long term.
If you run a large restaurant, then you may want to consider installing a building management system. A BMS monitors and controls your restaurant’s thermostats. They automatically adjust the temperature of rooms and turn thermostats off in unoccupied rooms.
This is a great way to reduce energy wastage in your restaurant.
Businesses are being affected by the current state of the energy market even more than domestic energy customers are. This is because business energy customers aren’t subject to the quarterly price cap from Ofgem.
Currently, the price cap for most domestic consumers is 34p per kWh for electricity. The price cap for standing charges is 46p each day. For gas, the price cap is 10p per kWh, and the daily standing charge is capped at 28p. These figures do vary depending on where you live and the type of tariff you are on.
As energy costs around the world continue to rise, these extra costs are being passed onto businesses. Without a price cap in place, gas and electricity prices for businesses look set to continue to rise.
One of the ways in which restaurants can still reduce their energy bills is to switch supplier. By comparing quotes from different suppliers, you can make sure that you’re getting the best possible deal.
By using the Business Energy Comparison website, you can receive a quote in minutes and could save up to 45% on your bills.
The cost of energy continues to rise around the world. In the UK, the hospitality sector is being greatly impacted by this.
By following the steps we’ve laid out in this guide, you can reduce energy waste in your restaurant. This will reduce your overall energy usage and help to keep your bills down.
The four main utilities used in restaurants are space heating, refrigeration, cooking, and water heating. In an average restaurant, these utilities account for around 80% of all energy usage.
The UK government is providing support for businesses via the Business Energy Bill Relief Scheme. The maximum discount for businesses on default or variable tariffs is 34.5p kWh for electricity and 9.1p kWh for gas.
It’s only worth fixing your business energy prices until 2023 if you find a fixed tariff that’s cheaper than the October 2022 price cap increase.
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