Restaurants Energy Guide

Restaurants: An Energy Guide

In the current climate, running costs are hitting businesses harder than ever. One industry under substantial pressure is hospitality, where energy consumption is inevitably high. In fact, according to data from the Carbon Trust, the catering industry uses 20,600 million kWh of energy each year.

A survey carried out by UK trade advocacy highlighted that the average energy price increase for hospitality businesses now sits at 238%, meaning more than 70% of organisations in the industry are witnessing their bills more than double.

Whether you’re running one restaurant or managing a chain, energy procurement proposes a whole host of options, questions and ultimately, opportunities.

We understand that the energy crisis is of great concern to many of our customers, that’s why we’ve taken time out to address some of their frequently asked questions.

The restaurant is part of a group, should I procure individually or buy in bulk?

Generally speaking, the more energy you use, the better your unit prices will be. When negotiating with energy suppliers, the higher the consumption, the lower the unit rate. Remember, suppliers want your business. The more sites you put though them, the more valuable you become as a customer.

Consider using an energy consultant for group buying. Many have established relationships with energy suppliers which can result in better prices for you.

We have a high usage; do we need more energy meters installed?

Sub-metering allows for more insight to be gained into energy performance. For example, if you have a separate sub-meter set up which supplies only refrigeration, you will be able to monitor the performance of those systems in isolation. With more visibility, trends and anomalies can be observed which increases the probability of you identifying where energy is being wasted.

Energy monitoring software will need to be installed in order to access your usage information. The technology offers invaluable insight into energy performance. With the current energy market, managing your consumption is more important than ever. Better visibility and understanding of energy use enables you to take steps towards being more strategic with the restaurant’s consumption.

We’re only half-way through our current contract, should we wait to look at prices?

Many factors influence price fluctuations, making it difficult to be 100% accurate with price forecasting, especially in today’s market.

However, statistics show that energy prices have increased year on year. No one can predict if or when energy prices will return to “normal” rates. At GAS, we’re constantly monitoring the energy market so get in touch if you’d like bespoke advice in this area.

There are factors suppliers consider when arranging contracts longer term, such as changes to the wholesale market, which could result in you paying more due to the supplier adding a contingency fund to your pricing. That’s why it is worth working with a consultant to navigate the best option for your restaurant.

Given the busy nature of the hospitality sector and the many factors involved with energy procurement, more and more restaurants are taking advantage of expert consultants. If you have concerns or questions about your business energy, get in touch today.

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Paul JohnsonGroup Financial Director

About Paul

Paul Johnson is very much a home-grown talent.

He joined Great Annual Savings Group in its infancy, fresh from a youth career as a professional footballer with Hartlepool United.  He quickly established a reputation within the business and aced all required accountancy qualifications in the space of four years to become the Group’s Management Accountant.

Several successful projects later, Paul was promoted to Head of Finance.  When the former FD left GAS, he took on the mantle of the business’ most senior finance professional; boasting a string of incredible achievements all under the age of 30.