Energy efficiency as a strategic business move

06/11/2023

Restaurants have been hit hard by the ongoing cost of living crisis, with the combination of rising energy bills and reduced consumer spending impacting profits.

Energy prices have risen by 81 per cent for hospitality businesses, and more than half of restaurants are raising prices to cope with this hike, according to Favouritetable.

But is this the only solution to surviving this challenging landscape?

Whilst some restaurants may be obligated to remain with energy providers due to their contracts, there are small energy-saving moves that you can make.

This strategic move not only makes your restaurant more energy-efficient but also has the added of benefit of helping to reach net zero goals.

Why is energy efficiency important?

Energy efficiency lowers utility costs, which is a welcome benefit for your profit margin.

The restaurant industry can also be very wasteful. With the Government’s initiative for all sectors to achieve net zero by 2050, the hospitality sector has work to do.

Apps like Too Good to Go are a great way to cut down on food waste, but you must adapt your internal operations to tackle wasting energy.

With this emphasis on a greener future, this is not just an operational concern but also a reputational one.

You can start small with some of the following changes:

Kitchen equipment and energy consumption

The kitchen typically accounts for a significant portion of energy usage in a restaurant.

Transitioning to energy-efficient appliances, particularly those with an energy star rating, can yield measurable reductions in energy costs without compromising performance.

LED lighting solutions

Ambient lighting is a crucial element in setting the atmosphere within your restaurant.

LED lighting provides an energy-efficient solution without sacrificing the quality of lighting. The longevity of LED bulbs further contributes to cost savings by reducing replacement frequency.

Intelligent climate control

Smart thermostats offer more precise control over heating and cooling systems compared to traditional thermostats.

This enables more effective energy usage, resulting in cost savings and a consistent internal environment.

Use of motion sensors

Certain areas within a restaurant, such as restrooms and storage spaces, do not require constant lighting or ventilation. Installing motion sensors in these areas ensures that energy is used only when necessary, thus reducing wastage.

Employee training in energy conservation

The role of staff in implementing energy conservation strategies is significant.

Simple habits, such as turning off lights or equipment when not in use, can contribute to overall energy savings. Staff training in this area is advisable for maximising efficiency.

As the saying goes, small changes can have a big impact. The switch to more energy-efficient practices not only aids in reducing operational costs but also aligns the business with growing consumer expectations around sustainable practices.

As part of a comprehensive business strategy, energy efficiency merits thoughtful consideration and planned implementation.

Our expert hospitality accountants can help you evaluate your business strategy and work out the most efficient way forward. Contact us today.