How To Manage Your Business Energy Costs for Restaurants?
Whether you're the proud owner of an Italian pizzeria, a traditional Chinese restaurant, or a beloved greasy spoon, one thing remains constant: the substantial impact of gas and electricity bills on your monthly outgoings.
As a restaurant owner, the energy consumed for lighting, heating, and cooking constitutes a significant portion of your operational costs. Since there are no ready-made solutions available for business energy, each contract is customised to suit the specific needs of your restaurant.
The Components of Your Restaurant Utility Bill
- Standing Charge — A fixed daily fee for electricity and business gas supply to your restaurant.
- Unit Rate — The price your energy provider charges you for each unit of energy you consume, typically measured in kilowatt-hours (kWh).
- VAT — Value Added Tax is a mandatory tax. The standard VAT rate in Ireland is usually set at 9%.
- Operating costs — This charge covers the costs of running your account.
Average Business Electricity Rate For a Restaurant: Unit rate (per kWh): 14.87c. Standing charge (daily): 25.46c. Approximate cost per year: €3,067.
What Are the Factors Affecting Business Energy Costs in Ireland?
- Location — The region where your restaurant is situated can impact energy prices due to variances in supply and distribution costs.
- Restaurant Size — Larger restaurants typically require more energy, resulting in higher bills.
- Energy Supplier — Different energy suppliers offer varying tariffs. It's beneficial to compare business electricity rates.
- Energy Usage — The most crucial factor. The more energy-intensive your operations, the higher your bills.
Restaurant Business Sizes and Consumption
| Type of Restaurant | Average Annual Electricity Usage | Average Electricity Cost Per Year | Average Annual Gas Usage | Average Gas Cost Per Year |
|---|---|---|---|---|
| Small business | 15,000 - 25,000 kWh | €2,367 - €3,660 | 15,000 - 30,000 kWh | €820 - €1,458 |
| Medium business | 30,000 - 50,000 kWh | €3,774 - €7,234 | 30,000 - 65,000 kWh | €1,458 - €2,239 |
| Large business | More than 50,000 kWh | €16,202 (based on 55,000 kWh) | More than 65,000 kWh | €5,967 (based on 65,000 kWh) |
Save on Your Business Energy Bills Today!
Our energy experts at Selectra compare all Irish suppliers to find the best commercial rate for your business — completely free.
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This is a free call from Ireland. Selectra agents can assist you with comparing and switching energy providers on weekdays between 9 am and 5.30 pm.
Which Are the Biggest Energy Consumers in Restaurants?
- Commercial Kitchen Equipment — Commercial-grade ovens, grills, fryers, and ranges consume significant amounts of energy, especially during peak operating hours.
- Refrigeration and Cooling Systems — Refrigerators, freezers, walk-in coolers, and ice machines are crucial for food storage but consume substantial energy.
- Lighting — Restaurants require ample lighting. Consider switching to energy-efficient LED bulbs.
- Heating, Ventilation, and Air Conditioning (HVAC) — Heating and cooling equipment can be energy-intensive, particularly in extreme weather conditions.
- Water Heating — Restaurants rely on hot water for cooking, dishwashing, and sanitation.
- Computers and Electronics — Point-of-sale (POS) systems, office computers, and other electronic devices contribute to energy consumption.
How Much Energy Is Used In a Restaurant?
Electricity Usage Breakdown
| Reason for Use | % of Total Usage |
|---|---|
| Refrigeration | 43% |
| Cooking | 14% |
| Miscellaneous | 14% |
| Ventilation | 12% |
| Cooling | 11% |
| Lighting | 6% |
Gas Usage Breakdown
| Reason for Use | % of Total Usage |
|---|---|
| Cooking | 67% |
| Water heating | 18% |
| Heating | 15% |
How To Reduce Your Business Energy Usage?
By effectively managing and enhancing the energy efficiency of your business operations, you can decrease overall energy consumption:
- Upgrade to energy-efficient equipment — Replace outdated appliances with energy-efficient models that bear the EU energy label.
- Optimise Lighting — Switch to LED lighting throughout your restaurant. Install motion sensors or timers.
- Control HVAC Systems — Regularly maintain and service HVAC systems. Use programmable thermostats.
- Efficient Water Usage — Install low-flow faucets, aerators, and water-efficient dishwashers.
- Smart Scheduling — Adjust operating hours to align with peak customer traffic.
- Proper Insulation — Insulate doors, windows, walls, and ceilings.
- Staff Training and Awareness — Educate staff in energy-saving practices.
- Energy Monitoring and Management — Install smart meters and energy monitoring systems.
- Renewable Energy Options — Explore solar panels or wind turbines.
- Energy audits and incentives — Conduct regular energy audits and apply for available grants.
Save on Your Business Energy Bills Today!
Our energy experts at Selectra compare all Irish suppliers to find the best commercial rate for your business — completely free.
Ad - Selectra Service
This is a free call from Ireland. Selectra agents can assist you with comparing and switching energy providers on weekdays between 9 am and 5.30 pm.
What Financial Support Is Available for Energy Infrastructure?
- Grants — SEAI grants offer several business grants in Ireland including the Energy Efficiency Obligation Scheme (EEOS) and the Accelerated Capital Allowance (ACA).
- Pay As You Save — Suppliers now provide a "pay as you save" model, covering the upfront installation costs of lighting, heating, and microgeneration.
- Green Loans — Banks and investors offer low-interest "green loans" to support sustainable energy projects.
How Can I Save Money By Switching Energy Suppliers?
Despite the current high energy prices and energy market volatility, businesses can still achieve savings by switching their energy providers. At Selectra, we collaborate with a reliable network of suppliers to secure competitive rates for your business.
Contact our experts at (01) 913 1771 (Mon - Thurs: 8:30 am - 6 pm and Fri: 9 am - 5:30 pm) for business energy support and to explore the potential savings you can obtain.
Frequently Asked Questions About Restaurant Energy Costs
A small restaurant typically spends €2,367 to €3,660 on electricity and €820 to €1,458 on gas annually. Medium restaurants can expect €3,774 to €7,234 for electricity and €1,458 to €2,239 for gas per year.
Refrigeration is the biggest electricity consumer in restaurants at 43% of total usage, followed by cooking and miscellaneous uses at 14% each, ventilation at 12%, cooling at 11%, and lighting at 6%.
Restaurants can reduce energy costs by upgrading to energy-efficient equipment, switching to LED lighting, maintaining HVAC systems regularly, installing smart meters, training staff in energy-saving practices, and exploring solar panels.
SEAI grants are available including the Energy Efficiency Obligation Scheme and Accelerated Capital Allowance. Additionally, 'pay as you save' models and green loans from banks can help cover upfront costs.
A restaurant utility bill includes a standing charge (fixed daily fee), unit rate per kWh consumed, VAT at the standard 9% rate, and operating costs for running your account.