Restaurant Energy Costs Explained: Electricity and Gas Usage in the UK
Managing a successful hospitality business requires a deep understanding of your overheads. At Business Utility Hub, we know that for many UK venues, energy costs have become one of the top overheads. Because restaurants are among the most energy-intensive SME sectors, understanding how electricity and gas are consumed is essential for managing your bottom line.
Whether you're running a small café or a large multi-site operation, your business energy bills are likely a significant portion of your operating expenses. In this guide, we’ll break down restaurant energy rates. We will identify where you might be seeing energy waste and explain how to increase energy efficiency to protect your profit margins.
How much energy does an average restaurant use?
Britain’s catering industry uses around 20,600 million kWh of energy each year. A significant share of this is used by small and medium-sized businesses, including restaurants, cafés, pubs and takeaways.
How much energy an individual restaurant uses depends on the size of the venue, the number of covers, opening hours and the type of equipment on site. A small bistro with limited trading hours will usually use far less energy than a large restaurant with high-capacity kitchens, refrigeration, extraction systems and long service periods.
Monthly energy costs can also vary significantly depending on your business energy contract. Unit rates, standing charges, tariff type and renewal timing all affect what you pay. This means two restaurants with similar usage may still have different monthly bills.
Understanding what affects your energy bills is just as important as knowing how much energy you use. They may also be linked to contract issues, such as out-of-contract rates or renewal terms that have not been reviewed. This gives a clearer view of whether your costs are being driven by high usage, an unsuitable tariff or a combination of both.
Factors affecting energy for restaurant costs breakdown
UK restaurant owners need to understand how restaurant energy rates are calculated to manage costs effectively. Unlike domestic energy, business energy prices are not protected by a price cap. Instead, the rates offered to your restaurant are based on market conditions, your energy usage and the details of your business energy contract.
Because every restaurant operates differently, two businesses on the same street can receive very different energy quotes. Factors such as opening hours, kitchen equipment, annual consumption and contract length can all affect the rates available.
Key factors that influence restaurant energy bills include:
Wholesale energy prices
Energy suppliers buy gas and electricity from wholesale markets, where prices can change daily. Global supply and demand, weather conditions, infrastructure issues and geopolitical events can all influence wholesale costs, which are then reflected in business energy prices.
Meter type
The type of meter installed at your premises can affect how your energy is measured and billed. Restaurants may use standard meters, smart meters or multi-rate meters that charge different rates depending on the time of day energy is consumed.
Tariff type
Fixed-rate energy contracts lock in unit rates for an agreed period, helping restaurants manage budgets and avoid short-term market fluctuations. Variable tariffs move with the market, meaning costs can rise or fall during the contract term.
Usage profile
How and when your restaurant uses energy has a direct impact on pricing. Restaurants with long opening hours, late-night trading, energy-intensive kitchen equipment or high hot water demand may have different energy requirements from cafés, takeaways or seasonal hospitality businesses.
Contract length and renewal timing
The length of your energy contract and when you choose to renew can also affect pricing. Energy suppliers regularly adjust their offers in response to market conditions, which is why reviewing your options before renewal dates can be an important part of energy management.
Understanding these factors makes it easier to assess energy quotes, compare tariffs accurately and make informed decisions about your restaurant's energy strategy.
Strategies to reduce energy consumption and save money
Restaurants cannot control wholesale energy prices, but they can control how energy is used across the venue and review whether their current business energy contract still fits how they operate.
Monitor your energy usage
A practical starting point is an energy audit. This reviews where gas and electricity are being used, where waste may be occurring and what changes could reduce consumption.
Low-cost actions include switching off extraction when it is not needed, maintaining refrigeration equipment and monitoring base load. Base load is the minimum energy your restaurant uses when closed and non-essential equipment is switched off.
Compare tariffs
Energy comparison should form part of any cost-control strategy. It should look at more than the unit rate. Usage patterns, standing charges, contract length, renewal dates and meter data all affect the final cost.
For restaurants, this is especially important because commercial kitchens, refrigeration, extraction, lighting and hot water can create high and uneven demand. By understanding when and how energy is used, restaurants can compare business energy tariffs more accurately and avoid staying on unsuitable or expensive out-of-contract rates.
A business energy specialist can support this stage by reviewing your current energy contract, comparing supplier options and helping you choose a tariff that reflects your venue’s real usage. This can help you secure the best possible outcome, rather than relying on headline rates alone.
Implementing a start-up and shut-down schedule
A clear start-up and shut-down schedule can reduce waste in busy kitchens. Fryers, ovens, grills and dishwashers should only run when needed, rather than being left idle between service periods.
When regular energy comparison is combined with practical energy management, restaurants can control both sides of their energy spend: the amount they use and the rates they pay.
Improving your restaurant's energy efficiency
Improving energy efficiency can help restaurants reduce consumption, lower running costs and support longer-term sustainability goals. The most effective approach is usually a combination of energy efficient equipment, smarter controls and clearer energy management.
Practical areas to review include:
- Energy efficient lighting: switching from traditional lighting to LED bulbs can reduce electricity use in kitchens, dining areas, toilets and back-of-house spaces.
- Heating, ventilation and air conditioning: smart thermostats can help match heating and cooling to opening hours, occupancy and seasonal demand.
- Energy efficient appliances: replacing older equipment with more energy efficient appliances can reduce daily electricity and gas use.
- Cooking equipment: induction hobs and other more energy efficient equipment can transfer heat more directly, helping kitchens reduce excess heat and use energy more effectively.
- Hot water systems: insulating hot water pipes can reduce heat loss and improve overall efficiency.
- Commercial dishwashers: modern models often use less energy and water than older equipment, helping restaurants manage both utility costs and water use.
Working with an energy specialist can make these decisions easier. They can review your usage data, assess where the biggest savings may be found and help prioritise upgrades based on cost, impact and operational needs.
How Business Utility Hub can help you save energy
Business Utility Hub helps UK hospitality businesses take control of their energy costs through clearer energy management, supplier comparison and practical contract support.
At BUH, we focus on business gas and electricity, helping restaurants understand their usage, compare energy tariffs and make better decisions before renewal dates.
Our team checks business energy prices daily and compares options across a trusted UK supplier network. We explain your options clearly, with no pressure to switch business energy suppliers and no upfront cost.
Our team can help you by:
- Reviewing your energy usage: we help identify where energy may be wasted across your kitchen, front-of-house areas, refrigeration, hot water and heating systems.
- Comparing business energy suppliers: we review suitable gas and electricity options based on your usage, contract dates and business needs.
- Planning around renewal dates: we help you avoid expensive out-of-contract rates by reviewing your options before your current energy contract ends.
- Supporting better energy management: we help you understand your bills, usage patterns and contract terms, so you can make more informed decisions.
You’ll have a dedicated account manager who learns your site, usage and renewal dates. Our advice is clear, practical and aligned with Ofgem regulatory standards. Our commission comes from the supplier, and we disclose exact amounts on request.
Review your current energy contract or compare rates before you renew.
Call 0800 781 2700 or email savings@businessutilityhub.co.uk to speak to a business energy specialist.
Take control of your hotel energy costs today
If you want to review the monthly energy cost for your restaurant or compare business energy suppliers, get in touch now.
