Business energy guide for Restaurants

Article posted

18th May 2023

Read time

6-11 min read


Mollie Pinnington

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Busy businesses such as restaurants often use up a lot of energy. Businesses within the hospitality sector have been particularly struggling when it comes to energy bills. This guide will help restaurant owners see where high energy bills are coming from and how these could be reduced.

Why is energy demand from restaurants so high?

Restaurants not only have to power a kitchen to cook the food they also have to keep a whole dining area heated and well-lit for their customers. This means a lot of gas and electricity are needed to keep this type of business running.

The demand for energy is going to be different for all restaurants depending on their size and what they offer. For example, takeaway restaurants are likely to have higher gas usage due to the higher turnover of food being cooked. These types of restaurants will also use less electricity as they are often not dine-in restaurants.

However, somewhere that caters to people sitting in and dining might find themselves using more electricity.

Either way, all these types of businesses usually find themselves with either high gas or electricity bills.


How are restaurant energy rates calculated?

Business rates often vary as it depends on how high the consumption is for each business.

This will be the same for restaurants. There are no set deals for business energy contracts, so one restaurant's energy bills could massively vary from another. Some factors that the price of your tariff will be based on are:

  • Size of business- a smaller restaurant will likely use a lot less energy than a large restaurant. Therefore, their energy bills are likely to look a lot different.
  • Credit rating - suppliers do not usually offer the most competitive rates to businesses that could pose a credit risk.
  • Your business location - the amount you pay for your energy will depend on where your business is based.
  • The type of restaurant - this could depend on the service and hospitality you offer. For example, a takeaway business with no option to sit is going to save more on electricity and heating bills.
  • Consumption - your energy bills will vary for your restaurant depending on how much your annual usage is.
  • Opening times - The type of tariff your business has could also vary depending on your opening hours. Restaurants that are open 24 hours could get a separate day and night rate.


What do restaurants use energy on?

Restaurants use energy for a variety of purposes, from heating and cooling to powering the lighting, cooking equipment and other appliances. Some of the most common uses of energy in restaurants include maintaining consistent temperatures inside and outside, keeping food fresh on chilled shelves or in freezers, and powering kitchen appliances like ovens, stoves and fryers.

Some appliances in a restaurant will use more energy than others:

  • Refrigeration appliances are one of the biggest electricity consumers in restaurants. This type of appliance generally accounts for up to 50% of a restaurant’s total electricity bill. Refrigerators and freezers, in particular, require a lot of energy to maintain temperatures cold enough to preserve food items.
  • Cooking appliances are one of the biggest sources of gas consumption in restaurants. These appliances typically account for up to 70% of a restaurant's total gas usage, making them the most energy-intensive type of equipment that businesses have to run.


What would be the best energy contract for a restaurant?

Businesses within the hospitality sector, such as restaurants, often find themselves with mounting energy bills. As it is a high-demand industry, restaurants need to use a lot of electricity to power their kitchen and dining area, as well as gas to keep food fresh and cook meals.

The best energy contract for a restaurant will depend on the size of the business and how much energy it consumes. Restaurants should compare different energy contracts from suppliers to find the best deal for their business.

Although all business's needs are different, there are some common elements that can help you decide which energy contract is right for your restaurant:

  • Fixed price plans – these give restaurants more certainty on their energy bills and help them budget better.
  • Green tariffs – with environmental awareness rising, environmentally-friendly suppliers offer green energy contracts that use renewable sources such as solar or wind power.
  • Low carbon contracts – these are ideal for businesses looking to move towards a greener future while cutting down on fuel costs.
  • Time of use tariffs – these can help restaurants save money on their energy bills by charging them different rates based on peak and off-peak times.

Finding the best energy contract for your restaurant is an important part of cutting costs and saving money in the long run. Restaurants should compare different deals to ensure they get the best energy rate for their business.

To save time when it comes to renewing your business energy bills, you can get in touch with us today and we will compare and find the best prices for your business.


How are Restaurants' energy bills calculated?

Business energy rates are calculated based on a number of factors, including the size of the business, its location, credit rating and usage levels.

Suppliers assess how much energy your restaurant consumes and then provide you with an estimation of how much you should expect to pay for your energy.

Other considerations include your payment terms, discounts, bills and contracts being offered. It’s important for businesses to compare different offers from suppliers to get the best deal. Businesses can also negotiate better rates with their supplier if they are willing to commit to a long-term contract or switch to a different supplier.

Businesses should also investigate green energy tariffs, which support renewable sources of energy such as wind and solar power. This will help your business reduce its carbon footprint while still getting affordable prices on their energy bills.

Finally, businesses should consider how their energy usage changes over time. Time of use tariffs can be beneficial as they will charge businesses different rates depending on peak and off-peak times. By understanding your energy usage, you can make sure you get the most out of your energy contract.

By being aware of these factors, businesses can find the best energy rate for their restaurant. Comparing different energy contracts is key to saving money in the long term and finding an affordable, sustainable energy solution for your restaurant.

If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.

Looking to pay less on your energy bills?

Get a free quote today