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Restaurant energy: Efficiency tips, tariffs and costs
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Average restaurant energy consumption
Energy is one of the biggest overheads in hospitality. The Carbon Trust and CIBSE estimate that Britain’s catering industry uses over 21,600 million kWh of energy every year, and restaurants sit at the energy-intensive end of that figure.
Understanding and minimising your business energy consumption is the first step to controlling restaurant energy costs.
Restaurant electricity consumption
Refrigeration is the biggest source of electricity used in a restaurant, accounting for around 43% of consumption because fridges and freezers never switch off.
Research on UK commercial kitchens found electricity use of 1.5 to 3.3 kWh per cover served, so a restaurant serving 100 covers a day could use 150 kWh to 330 kWh in the kitchen alone.
| Source of electricity use | Share |
|---|---|
| Refrigeration | 43% |
| Lighting, dishwashing and other | 20% |
| Cooking equipment | 14% |
| Ventilation and extraction | 12% |
| Heating and cooling | 11% |
Restaurant gas consumption
Restaurants use gas for far more than heating the building. Cooking accounts for around 67% of a typical restaurant’s gas use, powering hobs, ranges, ovens and chargrills through every service.
This makes restaurant gas usage far higher than that of the average business. A typical small office uses 15,000 to 30,000 kWh of gas a year, but a restaurant with a full commercial kitchen will be higher, because the kitchen draws gas constantly while food is being cooked.
Commercial kitchens use more than ten times as much energy per square metre as offices and retail premises.
| Source of gas use | Share |
|---|---|
| Cooking | 67% |
| Water heating and space heating | 33% |
Source: The Carbon Trust
Improving energy efficiency for restaurants
Less than half the energy a restaurant uses goes into storing and preparing food. The rest is lost as heat.
Here are five ways to improve business energy efficiency. If you’re not sure where to start, a business energy audit will show you exactly where energy consumption is used.
Temperature controls
Turning the heating down by 1°C can cut heating costs by up to 10%. Put the heating on a timer so the dining room only warms up shortly before opening, not hours earlier.
Induction hobs
Induction hobs use up to 50% less energy than gas or electric hobs. They also generate less ambient heat, so your extractor fans don’t have to work as hard.
Refrigeration maintenance
Fridges and freezers run around the clock, so small faults cost you all day every day. Clean the coils on the back, replace worn door seals and keep fridges away from hot cooking equipment.
Only switch on what you need
Most kitchens turn everything on at opening and leave it all running until close. Grills, fryers and ovens heat up in minutes, so switch them on as service gets busy rather than first thing.
Slow down your extractor fans
Extractor fans often run at full speed all day, even when nothing is cooking. Variable speed fans automatically slow down during quiet periods, reducing the electricity used by one of the kitchen’s biggest systems.
Energy costs for restaurants
Several tariff types suit restaurants depending on how you operate. Keeping an eye on business electricity prices and business gas prices helps you judge when a deal is worth taking.
Below, we cover the key factors that impact your restaurant’s energy bills.
Finding a competitive tariff
Many restaurants end up paying expensive out-of-contract rates after a fixed deal ends. Our experts can compare business electricity and compare business gas prices to find you a tariff that matches how your restaurant uses energy.
Consumption and efficiency
Your kitchen equipment has the biggest impact on your business electricity bill and business gas bill. Combi ovens cook faster and hold temperature better than traditional ranges. Convection ovens use around 20% less energy than conventional ones.
Standing charges
Standing charges are fixed daily fees you pay, regardless of how much energy you use, and they vary significantly by region. Check both your business electricity standing charges and business gas standing charges when reviewing a deal, as a cheap unit rate doesn’t always mean a cheap contract overall.
Best energy tariffs for restaurants
There’s no single right tariff for every restaurant. The best deal depends on your opening hours, how many sites you run and how much certainty you want over costs. Below are the tariff types that tend to work best for restaurants.
Fixed business energy tariffs
A fixed tariff locks in your unit rate for the length of your business energy contract, so a volatile energy market won’t push up your costs during the contract. For restaurants working to tight margins, knowing what energy will cost makes menu pricing and budgeting far easier.
Multi-rate business energy tariff
A multi-rate meter charges different rates at different times of day, with cheaper units overnight and at weekends. Restaurant refrigeration runs 24 hours a day, so a chunk of your consumption happens off-peak, whether you’re open or not.
Multi-site business energy contract
Running more than one restaurant means multiple contracts, renewal dates and bills. A multi-site business energy contract brings every location under a single agreement with one supplier and one end date, which simplifies admin and gives you more buying power.
Renewable energy options for restaurants
Going greener doesn’t have to mean paying more. Below are the renewable options typically most suitable to restaurants in Britain.
Solar panels
Commercial solar panels generate free electricity during daylight hours, helping power your refrigeration, prep kitchen and lunch service. Restaurants with south-facing roof space are most likely to achieve a strong ROI on a solar investment.
Battery storage
Restaurants use most energy during evening service, after solar generation has dropped off. Commercial solar batteries store surplus power from earlier in the day so your evening rush runs on electricity you generated yourself.
Green tariffs
If solar isn’t an option for your premises, a green business energy tariff matches your consumption with renewable electricity bought from the grid. It’s the simplest way to reduce your restaurant’s carbon footprint without changing anything on-site.