Best Practices

Cold Cash: Reducing Restaurant Utility Cost

Restaurants are among the most energy-hungry businesses, using five to seven times the energy of a typical office or retail space and 30 times more energy per square foot than homes. About a third of that restaurant energy use goes towards heating, ventilation and air conditioning, with another third used for running your cooking and preparation equipment. Refrigeration and dishwashing eat up another 20% or so of your total energy bill. There are several ways you can decrease your usage and save money every month. Here are just a few ways you can save on restaurant utility costs.

Adjust your HVAC unit so that you are running at 78 degrees Fahrenheit in the hot months and 68 degrees Fahrenheit in the cooler ones. Many HVAC systems have a night-time setback feature that will adjust the temperature to save energy in off hours. If you are not using the setback feature, start now. If your system does not have one, see about getting one installed or train your staff to adjust the system manually as part of their opening and closing duties.

If you have a hot water heater on-site, turn it down to 120 degrees Fahrenheit. Lower than 120 degrees runs the risk of harmful bacterial growth in the water tank. Check all your refrigeration units to make sure that they are holding temperature at exactly 40 degrees. Forty degrees is cold enough to prevent the growth of foodborne pathogens but not so cold that you are committing excessive restaurant energy use. For every degree you run your walk-in or reach-ins below that 40-degree threshold, you are using about 1.5% more electricity over an eight-hour period. If your refrigerators cannot hold temperature at 40 degrees, call your maintenance provider.

Energy conservation is the foundation of energy independence.
- Tom Allen

Keeping filters, motors and coils in good shape will pay off in energy reductions. Anything that has a motor – such as refrigerators, prep equipment, and dishwashers – needs to be checked periodically to make sure the motor is free of dust and dirt and that air is moving easily around it. Dust off motorized fans and coils too, at least once a month. Keep your evaporator coils in your walk-ins unblocked and ice-free. Teach your staff how to store goods correctly so that they do not block the evaporator. Safely remove any excess ice buildup so that the walk-in's air can move freely into the evaporator for optimal efficiency of the refrigeration system.

Consider joining the growing movement away from using natural gas for cooking. Foodservice equipment manufacturers have been steadily improving their electrical offerings so that they are more efficient, easy to use, and easier to install and maintain. Most professionals working the line will tell you that cooking with gas is faster, more adjustable, and in many ways preferable to electric versions of grills, ranges, and fryers. And in many locations, gas is cheaper than electricity for the same unit of heating energy. But it is well established that gas equipment generates much more wasted heat than electric equipment. That heat puts strain on your HVAC system which in turn raises your restaurant utility costs. In addition, gas equipment is often more expensive to install, particularly if you need new gas lines put in place.

Anything you can do to help your ventilation hood work well will save you on restaurant utility costs. A back-shelf hood is the most energy-efficient style of ventilator, so if you have only a small line, this could be your best option. Canopy-style hoods use more energy but are better suited to larger cooking lines and are your only choice for cooking islands. Whatever type you choose, ensure that your hood is UL-listed as listed hoods will minimize the necessary airflow for your line. Work with your hood manufacturer to size the hood's system correctly for the equipment you'll have under it.

The Upshot…

With restaurant utility costs taking at least five percent of your sales, all these strategies are worth adopting. Start with little changes to your operations and take on better, more efficient equipment when your budget permits. Every little change to your restaurant energy use can make a notable difference to your P&L.

Have a profitable week!

The RestaurantOwner.com Team