How to Reduce the Operating Costs of Your Restaurant

With energy prices at the staggeringly high level that they are, restaurants want to save on their energy bills as much as they can.

By becoming energy-efficient your restaurant will save a big amount of money on its energy bills. One of the best ways to save money on your restaurant’s energy bill, is to compare energy providers and their rates. There are many utility companies that will do this for you.

Restaurant Energy Usage

There are many different things in a restaurant that use energy, both electricity and gas. Depending on an appliance and its function, it uses either electricity or gas. The amount of electricity used by a restaurant depends on the size of the establishment as well as the kinds of appliances used.

Restaurants use a lot more electricity than average small and medium businesses. Electricity is used in multiple areas of a restaurant including refrigeration, cooking, ventilation, cooling, and lighting. Fridges tend to use the most electricity out of all appliances, with lighting using the smallest amount. Naturally, when your restaurant has more appliances, its energy bill will be more as well. Gas is mostly used for cooking in restaurants. Although, it is also used for heating the building and water. The areas in a restaurant that uses the most energy are refrigeration, cooking, and heating.

Restaurant Energy Bill

The amount on your energy bill is determined by a number of factors, which include popular energy providers and their rates. These include the restaurant’s credit rating, size, location, type, and operating sector. A restaurant’s energy bill is not just made up of the amount of energy that it uses. There are other additional charges as well.

These additional charges include:

Wholesale costs. The amount that your supplier pays for the energy that they supply to you.

Network costs. The amount your supplier is charged to get the energy to your restaurant’s premises.

Operating costs. The amount your supplier pays to handle your restaurant’s account.

Environmental initiative costs. These costs are set by the government to fund projects trying to save the environment.

Service fees. This is what you are charged by your energy supplier.

Taxes. Your restaurant has to pay VAT, with the amount varying between 20% and 5% depending on your energy usage. Climate Change Levy (CCL) is part of your restaurant taxes if it uses over 33kWh of electricity and over 145kWh of gas a day. It is there to motivate restaurants to become more sustainable.

Making Your Restaurant Energy-Efficient

When your restaurant is more energy efficient it can save your business up to 20% on its energy bill. The first thing you need to do is to arrange for an energy audit to be conducted on your restaurant. This will give you an exact report on where you are using energy, what it is used on, where energy is being wasted, and where it can be saved. If necessary, your restaurant might have to switch energy providers. This happens when you find a deal with more benefits at a better rate for your restaurant. Maybe your current energy provider has a better deal to offer. You have to educate your employees on how to be more energy-efficient and what the benefits are.

There are many ways that you can make your restaurant more energy-efficient.

Lighting. Use LED bulbs or fluorescent tubes instead of traditional bulbs. When there is an abundance of natural light, but not enough to light the area sufficiently, you can use light dimmers to make up for the difference. When a room or area is not being used, you have to turn off the lights. Installing motion sensors and timers will ensure that lights turn on and off as needed.

Heating and Cooling. Installing smart thermostats to regulate room temperature in your restaurant. Reducing the temperature by 1 degree will already make a difference on your energy bill, without having a drastic impact on customer and employee satisfaction. Service and maintain the ventilation system on a regular basis. Use air-conditioners only when necessary. Installing ceiling fans is more economic than using air-conditioners. Installing double-glazed windows will keep out UV rays while retaining necessary heat. Insulate the ceiling and walls to reduce draughts. Make sure that hot water pipes are insulated to keep water hot for longer. Make sure that the water is at 60 degrees, which is the optimum temperature.

Refrigeration. When installing fridges and freezers, make sure that they are not close to ovens and hobs. Make sure that fridge doors are only opened when needed, and that the doors are not left open. Refrigeration seals have to be in good condition and working order, otherwise the cold will leak out. Clean and defrost fridges and freezers on a regular basis. When buying new freezers and fridges, make sure that they are energy-efficient.

Equipment and Appliances. Clean and maintain all equipment and appliances as often as needed. If new devices are needed, make sure that they are energy-efficient. Turn off cooking equipment at the end of the day when they aren’t needed.

Alternative Energy. Try investing in methods to create your own energy. Install solar panels or miniature wind turbines. If you produce more energy than the restaurant used, you can sell the excess back to the National Grid and make a bit of extra money.

Conclusion

This article gives a brief description of restaurant energy usage, as well as which parts of a restaurant use the most energy. The uses of electricity and gas in a restaurant are given. The layout of a restaurant’s energy bill is given, as well as the additional charges on it. Tips are given on how a restaurant can become more energy-efficient.