Average Monthly Electric Bill for Restaurants & How to Reduce Costs

Restaurants rely heavily on electricity for cooking, refrigeration, heating, and lighting. With energy costs rising, monitoring and managing your energy expenses is essential to maintaining profitability.

In this article, we’ll break down the average monthly electric bill for restaurants and provide practical strategies to reduce energy consumption and cut costs.

What is the Average Monthly Electric Bill for Restaurants?

Restaurant energy costs vary based on size, equipment usage, and location. On average:

• Small restaurants consume 15,000 – 25,000 kWh per year, paying around £2,500 – £3,500 annually.

• Medium restaurants use 30,000 – 50,000 kWh per year, costing £3,800 – £7,500 annually.

Electricity Usage by Restaurant Type (kWh per square foot):

• Fast Food Restaurants – 73.9 kWh/sq. ft. (highest usage)
• Full-Service Restaurants – 43.5 kWh/sq. ft.
• Bars, Pubs, Lounges – 26.3 kWh/sq. ft.

Did You Know? The food service industry uses 2.5 times more energy than other commercial buildings, leading to narrower profit margins.

What Factors Affect Restaurant Energy Costs?

Energy costs depend on internal and external factors.

Internal Factors (Business-Specific)

• Water Usage – Inefficient dishwashing and excessive water heating drive up bills.
• HVAC Systems – Poor maintenance leads to higher heating & cooling costs.
• Equipment Efficiency – Older ovens, refrigerators, and dishwashers waste more energy.
• Lighting – LED lighting can significantly reduce consumption.
• Equipment Quantity – More appliances = higher energy demand.

External Factors (Market Conditions)

• Weather – Hot summers & cold winters increase heating & cooling costs.
• Location – Regional energy sources affect pricing.
• Supply & Demand – Fuel shortages or high demand can raise costs.

How to Calculate Restaurant Energy Costs

To estimate individual equipment consumption, use this formula:

Energy Consumption (kWh) = Power (kW) × Time (hrs) × Efficiency (%)

Example: A fridge using 2 kW for 12 hours per day at 85% efficiency:
2 kW × 12 hrs × 0.85 = 20.4 kWh per day

Pro Tip: Monitoring high-energy appliances can pinpoint areas for savings.

How to Reduce Your Restaurant’s Electric Bill

Quick Fixes (Instant Savings)

• Optimise Lighting – Use LED bulbs, install occupancy sensors, and dim lights in naturally lit areas.
• Shut Down Unused Equipment – Assign staff to turn off ovens, exhaust fans, and lighting after hours.
• Replace Filters – Clean HVAC and refrigeration filters regularly.
• Reduce Water Waste – Fix leaks, install low-flow aerators, and switch to high-efficiency spray valves.
• Maintain Refrigeration – Close doors properly, replace worn gaskets, and install strip curtains.

Long-term Strategies

• Upgrade to Energy Star Equipment: Replacing outdated kitchen equipment with Energy Star-certified appliances can save overall utility costs in the long run. When ovens, water heaters, and refrigerators work efficiently, they can reduce up to 30% of gas usage.
• Utilise High-Efficiency Equipment: High-efficiency cooking equipment like induction cookware and lightwave ovens can help restaurants save up to 15 to 30% of energy. To optimise energy usage, install energy-efficient hand dryers in the bathrooms and evaporator fan controllers in walk-in coolers. Consider smart vent hoods that use detectors to regulate exhaust fan use, as they can provide substantial energy savings.
• Train Staff for Energy Conservation: Provide dedicated training to your staff on energy-saving practices and ensure follow-up to encourage consistent implementation. Simple actions, such as closing the kitchen steamer door and using timers, can result in significant annual energy savings per equipment.

Advanced Strategies

• Commissioning: Energy management involves more than simple adjustments to equipment and thermostats. Consider commissioning, a process where engineers verify and document your building’s energy systems to ensure proper design, installation, and calibration.
• Energy Management Technologies: Emerging technologies like scheduling software, web-based POS systems, and energy management software can provide real-time data analysis for your restaurant. Employing an effective energy management system will help you monitor utility consumption, detect spikes, and alert managers. It allows for prompt action, such as addressing open cooler doors or providing additional oversight and training for rising energy use patterns.

Let Light Up Energy Help You Reduce Costs

Managing restaurant electricity contracts is complex and time-consuming. Light Up Energy simplifies the process by:

• Auditing your current energy contract for overcharges.
• Comparing suppliers to secure the best rates.
• Providing expert energy advisory to cut long-term costs.

Get in touch today for a free consultation and start saving!

FAQs About Restaurant Energy Bills

How Many kWh Does a Restaurant Use?

• Small restaurants: 15,000 – 25,000 kWh per year

• Medium restaurants: 30,000 – 50,000 kWh per year

What Uses the Most Energy in a Restaurant?

• Food Preparation – 35% (ovens, grills, fryers)

• HVAC – 28% (heating & cooling)

• Sanitation – 18% (dishwashers, water heating)

• Lighting – 13%

• Refrigeration – 6%

What Should You Check During an Energy Audit?

• Are staff following energy-saving practices?
• Where is energy being wasted
• What’s the budget for energy efficiency upgrades?
• Which appliances should be replaced first?

Final Thoughts

Restaurant energy costs are a major expense, but smart energy management can lead to significant savings.

• Next Steps:
  Monitor energy usage.
• Upgrade to energy-efficient appliances.
• Work with an energy consultant to secure the best tariffs.

Light Up Energy is here to help your business reduce costs and boost profitability. Get in touch today!