How To Reduce and Manage Energy Consumption in Restaurants

Energy consumption in restaurants can be a significant drain on your budget, especially with the need to power kitchen equipment and refrigeration systems. However, with efficient energy management, you can reduce costs and improve operational efficiency. In this guide, we’ll highlight the restaurant equipment that consumes the most energy and provide actionable energy-saving tips.

How Much Energy Does a Restaurant Use?

Restaurants have high energy demands due to cooking, refrigeration, lighting, heating, and dishwashing. The total energy usage depends on the size and type of restaurant:

  • Small restaurants: 15,000 – 25,000 kWh of electricity & 15,000 – 30,000 kWh of gas per year.

  • Medium-sized restaurants: 30,000 – 65,000 kWh of gas per year.

  • Fast-food restaurants: 73.9 kWh per square foot, due to high-energy appliances like grills and fryers.

  • Full-service restaurants: 43.5 kWh per square foot.

  • Bars & pubs: 26.3 kWh per square foot, as they use less cooking equipment.

What Uses The Most Energy In A Restaurant?

The highest energy-consuming activities in a restaurant are refrigeration and cooking. Below is a breakdown of electricity and gas consumption:

Electricity Consumption in Restaurants

Utility DemandPercentage of Total Electricity Consumption
Refrigeration43%
Cooking14%
Ventilation12%
Cooling11%
Lighting6%
Others14%

Gas Consumption in Restaurants

Utility DemandPercentage of Total Electricity Consumption
Cooking67%
Heating15%
Water Heating18%
Things use the most gas in a restaurant
Cooking and refrigeration activities require most energy

Key Areas of Concern for Energy Waste

Before implementing energy-saving measures, focus on these critical areas:

1. Inefficient Equipment and Appliances

Low-quality appliances waste up to 80% of energy over time and are prone to breakdowns, leading to higher maintenance costs. Additionally, inconsistent performance can affect food quality and customer satisfaction.

2. Lack of Routine Maintenance

Neglecting maintenance results in unexpected breakdowns and higher repair costs. If refrigeration units fail, you risk inventory spoilage and wasted resources.

3. No Energy Management System (EMS)

An Energy Management System (EMS) helps monitor energy usage in real-time, pinpointing inefficiencies and potential cost-saving opportunities. Without it, restaurants rely on reactive maintenance, which increases costs.

Lack of a restaurant Energy Management System
Some areas of concerns

How Much Is The Average Restaurant Energy Bill?

Several factors impact a restaurant’s energy bill, including contract terms and market conditions. The key cost components are:

  • Standing charge: Daily fixed fee (25p – 61p for gas, 25p – 34p for electricity).

  • Unit rate: Cost per kWh (around 4p for gas, 16p for electricity).

  • Climate Change Levy (CCL): A government charge to encourage energy efficiency (exemptions apply for low-usage businesses).

  • VAT: Typically 20%, but reduced to 5% for businesses using less than 33kWh of electricity or 145kWh of gas per day.

  • Contract terms: If a restaurant doesn’t monitor its renewal period, it may end up on higher out-of-contract rates.

Energy-Saving Tips for Restaurants

You can cut energy costs with both quick fixes and long-term solutions:

Quick Fixes

  • Turn off appliances when not in use to avoid unnecessary energy consumption.
  • Perform regular maintenance on equipment to ensure efficiency.
  • Upgrade HVAC systems to ENERGY STAR-certified models for efficient heating & cooling.
  • Benchmark your energy use by getting certified through the Green Restaurants Association.

Long-Term Solutions

  • Commissioning: Optimize restaurant setup to minimize energy waste.
  • Efficient kitchen measures: Use the right equipment for specific tasks & clean appliances regularly.
  • Refrigeration efficiency: Regularly defrost freezers & check door seals to reduce energy waste.
  • HVAC maintenance: Annual tune-ups prevent costly breakdowns & improve performance.
  • Install smart HVAC controls: Automate heating/cooling adjustments based on occupancy.
  • Switch to LED lighting: Install motion detectors to reduce unnecessary energy use.
  • Insulate water heaters: Prevents heat loss & reduces energy waste.
  • Energy-efficient dishwashers: Use models that consume less water and energy.
  • Sensor-based bathroom fixtures: Reduce water & electricity use.
Longer-term solutions
Some energy-saving tips

Light Up Energy: Your Trusted Partner in Energy Cost Reduction

Understanding restaurant energy consumption allows you to lower costs and boost profitability. Light Up Energy provides expert services to help restaurants optimize energy usage, including:

Don’t let high energy costs eat into your profits! Contact Light Up Energy today for a free consultation and start saving

 

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Light Up Energy
Light Up Energy
Light Up Energy, founded by hospitality experts with 20+ years of experience, helps businesses save money via innovative energy management strategies.