Restaurant Energy Rates Comparison
Restaurant Energy Rates Comparison
Compare restaurant energy rates and find a suitable business energy contract
Restaurants use large amounts of gas and electricity throughout the day - approximately 5 to 7 times more energy per square foot than standard commercial buildings. Cooking equipment, refrigeration, extraction systems, lighting, heating, hot water and air conditioning can all place continuous demand on your energy supply.
This means restaurant energy costs can rise quickly when unit rates, standing charges or energy usage change. Even a small difference in the price paid per kilowatt-hour can affect annual operating costs, particularly for restaurants with long opening hours or energy-intensive commercial kitchens.
Business Utility Hub helps restaurants across the UK compare business energy contracts from a trusted network of business energy suppliers. We review your current tariff, annual usage and contract position before comparing suitable gas and electricity options.
Whether your energy contract is approaching renewal, has already ended or your restaurant is paying deemed or out-of-contract rates, we’ll help you understand your options and find an energy deal that reflects how your business operates.
Call 0800 781 2700 to speak to a business energy specialist and get a quote within minutes.
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Our approach to hospitality energy comparison
Tell us about your restaurant
We’ll ask a few straightforward questions about your business premises, current energy supplier, contract status and annual usage. We compare restaurant energy rates based on your real consumption rather than a general small business estimate. If you do not have every detail available, our team can help you identify what is needed and where to find it.
We compare the business energy market daily
Our team reviews business energy prices every day, comparing options from energy suppliers serving restaurants and the wider hospitality sector. We look beyond the headline unit rate. Wholesale costs can move regularly, which means a restaurant energy contract agreed several years ago may no longer reflect current market conditions. By checking energy prices daily, we can give you a current view of the business energy contracts available when you are ready to compare.
Choose from suitable energy deals
We’ll provide a clear shortlist of restaurant energy contracts that reflect your site, usage and contract position. We will not pressure you to switch business energy suppliers. Our role is to explain the options clearly and help you understand how each contract may affect your restaurant’s energy bills. You remain in control and only proceed if the recommended deal is right for your business.
We manage the entire switch
Once you select a suitable energy contract, we manage the full switching process. Switching energy suppliers does not physically change how electricity or gas reaches your restaurant. The same network continues to deliver the energy. The main changes are your supplier, energy contract and tariff. There is no disruption to service and no need to close your restaurant while the switch takes place. You’ll also have a dedicated account manager who understands your premises, energy usage and renewal dates.Restaurant energy rate comparison
Restaurant energy rates are affected by electricity prices, gas prices, standing charges, wholesale costs and the structure of the energy contract. Restaurants typically pay standard commercial unit rates rather than benefiting from domestic energy price caps, so reviewing your contract regularly is important.
You may be paying more than necessary if:
- Your current energy contract has ended.
- You are paying deemed or out-of-contract rates.
- You recently took over the premises.
- Your opening hours have increased.
- You have added new cooking equipment or refrigeration.
- Your energy consumption has changed.
- Your existing tariff no longer reflects your annual usage.
- You operate several restaurants with different suppliers or renewal dates.
- You accepted your current supplier’s renewal offer without comparing alternatives.
Restaurant energy consumption is often higher than in many standard commercial buildings. Commercial kitchens, refrigeration, extraction systems and hot water can account for a significant share of the restaurant’s energy use.
A restaurant energy rate comparison helps you understand whether higher energy bills are being driven by consumption, contract terms or both.
Business Utility Hub compares gas and electricity contracts for restaurants before renewal, after contract expiry and when a business has inherited deemed rates following a change of ownership or tenancy. Our aim is to help you save money, reduce administration and find a better energy deal based on how your restaurant operates.
Understanding manufacturing business energy consumption
Manufacturing energy consumption is fundamentally different from most other business sectors. Production environments rely on a continuous and reliable energy supply, often operating during peak demand periods and using specialist equipment that drives higher electricity costs.
Energy use in manufacturing typically includes:
- Electricity consumption from machinery, production lines, motors and automation systems.
- Gas usage for heating, processing, drying or steam generation.
- Compressed air systems, which are common in industrial settings and can be among the most energy-intensive components of a site.
- Supporting loads such as lighting, ventilation, cooling and control systems.
For UK manufacturers, energy consumption is influenced by both operational demand and external market factors. Industrial electricity prices tend to sit above domestic averages due to network costs, capacity charges and peak demand exposure. Gas prices can fluctuate sharply in response to global supply conditions, wholesale energy markets and UK government policy.
Understanding how energy is used across your manufacturing operations is the first step in managing costs. The second is making sure your gas and electricity contracts reflect that reality, rather than defaulting to unsuitable tariffs.
What types of energy contracts are available for restaurants?
Restaurants can choose from several types of business energy contracts. The right option depends on your energy usage, budget requirements, contract status and appetite for changing energy prices.
Fixed-rate restaurant energy contracts
A fixed-rate energy contract keeps the agreed unit rate stable for a set period.
This may help restaurants:
- Plan energy costs more accurately.
- Improve budgeting.
- Protect against short-term market increases.
- Forecast operating costs with greater certainty.
Fixed-rate contracts are often suitable for small businesses that prefer predictable energy bills.
However, restaurants should still review the full contract. Standing charges, contract length, renewal clauses and exit terms can all affect the overall cost.
A fixed unit rate does not always mean every charge is fixed. Some network or policy-related costs may be passed through separately, depending on the energy contract.
Flexible or pass-through energy contracts
Flexible or pass-through contracts allow some costs to move during the contract term.
These agreements may track wholesale costs or non-commodity charges more closely. Non-commodity charges are costs linked to networks, system operation and government policies rather than the energy itself.
Flexible contracts may be more suitable for larger restaurants or hospitality groups with higher annual usage and active procurement support.
They can provide opportunities when market prices fall, but they may also expose the business to higher energy costs when prices rise.
Standard Variable Tariffs
A Standard Variable Tariff, or SVT, is an energy tariff where the unit rate and standing charges can change in line with the market.
These tariffs may have no fixed end date and often do not include an exit fee. However, they can leave restaurants exposed to changing electricity prices and gas prices.
If your restaurant is on an SVT, it is worth comparing available energy deals to see whether another contract would provide more suitable pricing or greater certainty.
Deemed and out-of-contract rates
Deemed and out-of-contract rates are commonly more expensive than negotiated business energy contracts.
A deemed rate may apply when:
- You move into new restaurant premises without arranging a contract.
- You take over an existing hospitality business.
- You have not contacted the current energy supplier.
- No formal energy contract is in place for the new occupier.
Out-of-contract rates may apply when:
- Your previous energy contract ends.
- You do not renew or switch suppliers.
- The current supplier continues to provide gas and electricity.
If your restaurant is paying deemed or out-of-contract rates, you can usually switch business energy suppliers once a suitable new contract is agreed.
Business Utility Hub helps restaurant owners confirm their current contract position, review annual usage and compare gas and electricity options from multiple energy suppliers.
This support is available whether you are approaching renewal, have already reached your contract end date or have inherited deemed rates after taking over a premises.
How are monthly energy costs for a restaurant calculated?
Monthly energy costs for restaurants depend on both energy consumption and the terms of the business energy contract.
A restaurant’s energy bills will usually include:
- Electricity and gas unit rates.
- Daily electricity and gas standing charges.
- Total energy usage in kilowatt-hours (kWh).
- VAT and applicable levies.
- Metering and network charges.
- The type and length of the energy contract.
- Any pass-through costs included by the supplier.
The unit rate is the price paid for each kWh of electricity or gas consumed. Standing charges are fixed daily amounts that apply regardless of how much energy the restaurant uses.
This means two restaurants with similar annual usage can still have very different business energy bills. One may have lower unit rates but higher standing charges, while another may be paying deemed or out-of-contract rates after its previous agreement ended.
Restaurant energy costs are also affected by:
- Opening hours.
- Number of covers.
- Cooking equipment.
- Refrigeration and freezer capacity.
- Extraction systems.
- Heating and air conditioning.
- Hot water demand.
- Seasonal trading patterns.
- Whether the kitchen runs mainly on gas, electricity or both.
There is no standard monthly cost that applies to every restaurant. An independent café will usually have different energy usage from a large restaurant with several service periods, a commercial kitchen and extensive refrigeration.
Industry averages can provide context, but the most useful figures are your own annual usage, current unit rates and standing charges.
Understanding restaurant energy consumption
Restaurant energy consumption varies considerably from one site to another.
A small café with limited opening hours may use less energy than a large restaurant with commercial ovens, several refrigeration units, extraction systems and long service periods. The type of food prepared, number of covers and building condition also affect how much energy is consumed.
Energy usage may be influenced by:
- The size of the premises.
- The number of customers served.
- Opening hours.
- Kitchen preparation and cleaning times.
- The type of cooking equipment used.
- Whether the kitchen relies mainly on gas or electricity.
- Refrigeration and freezer capacity.
- Extraction and ventilation.
- Heating and air conditioning.
- Hot water demand.
- Seasonal trading patterns.
- Outdoor dining or heated areas.
Industry averages can provide a broad indication of how much energy an average restaurant may use, but they do not show what your own business should be paying.
Two restaurants with similar annual usage may still receive very different energy bills because they have different unit rates, standing charges or energy contract terms.
Reviewing your own electricity and gas consumption gives you a clearer view of whether your restaurant energy costs are being driven by usage, an unsuitable tariff or both.
What uses the most energy in a restaurant?
Commercial kitchens are usually responsible for a significant share of a restaurant’s energy consumption.
Cooking equipment such as ovens, fryers, grills and hobs may operate for long periods before, during and after service. Refrigeration and extraction systems can also use substantial amounts of electricity because they often run continuously.
Other major sources of energy use include:
- Walk-in fridges and freezers.
- Dishwashers.
- Hot water systems.
- Central heating.
- Air conditioning and HVAC systems.
- Front-of-house and kitchen lighting.
- Food preparation equipment.
- Heated outdoor areas.
Understanding which systems use the most energy can help identify energy waste and support a more accurate business energy comparison.
Conducting energy audits can also show whether your restaurant’s costs are being driven by high consumption, inefficient equipment or an unsuitable energy contract.
How can restaurants reduce energy costs?
Restaurants can reduce costs by combining energy efficiency improvements with regular energy contract reviews.
Practical energy saving initiatives include:
- Replacing traditional light bulbs with LED lighting- this can reduce electricity usage by 80%
- Installing energy efficient lighting controls in low-use areas.
- Keeping fridge and freezer doors closed.
- Cleaning refrigeration coils regularly.
- Defrosting refrigeration equipment when needed.
- Insulating hot water pipes to reduce heat loss.
- Switching off non-essential equipment outside opening hours.
- Servicing extraction and ventilation systems.
- Replacing older cooking equipment with energy efficient models.
- Reviewing heating and air conditioning settings seasonally.
These changes can cut energy waste and reduce the amount of energy consumed. However, lower usage will not always lead to the lowest possible energy bills if the restaurant remains on an unsuitable tariff.
After making significant efficiency improvements, it is worth reviewing whether your annual usage and demand profile still match your current business energy contract.
Looking for combined gas and electricity deals?
Many restaurants rely on both gas and electricity. Gas may be used for cooking, central heating and hot water, while electricity powers refrigeration, extraction systems, lighting and front-of-house equipment.
Using the same supplier for gas and electricity may simplify administration, but it will not always provide the best deal. Both combined and separate contracts should be compared before a decision is made.
Business Utility Hub reviews:
- Electricity and gas usage.
- Unit rates.
- Electricity and gas standing charges.
- Contract end dates.
- Meter details.
- Current supplier terms.
- Whether the restaurant operates one or several sites.
We can compare combined business energy contracts as well as separate gas and electricity options. This gives restaurant owners a clearer view of the total cost rather than assuming one arrangement will always be cheaper.
Once you choose an energy deal, we manage the switch and liaise with the relevant energy suppliers. There is no disruption to your gas and electricity supply.
Compare combined gas and electric deals.
When should restaurants switch business energy suppliers?
Wherever possible, Restaurants should review their options before the current energy contract ends.
Starting early gives you more time to:
- Compare restaurant energy rates.
- Review annual usage.
- Check unit rates and standing charges.
- Compare several business energy suppliers.
- Consider fixed and flexible contract options.
- Avoid expensive out-of-contract rates.
However, you can still switch business energy suppliers if your previous contract has already ended or you have been placed on deemed rates.
Businesses that have recently moved into a restaurant premises may also be placed on a deemed tariff by the existing supplier until a new energy contract is agreed.
Switching energy suppliers does not physically change the electricity or gas delivered to the premises. The network remains the same. The main changes are the supplier, contract terms and the price paid.
Compare combined gas and electric deals
Why choose Business Utility Hub for restaurant energy comparison?
Daily price monitoring
Business energy prices can change regularly. That's why we monitor the market every day, comparing business gas and electricity prices from a trusted network of UK suppliers. This helps us identify competitive restaurant energy rates and present current options when you're ready to review your contract.
Specialist hospitality focus
Restaurants have different energy requirements from many other businesses. Long opening hours, commercial kitchens, refrigeration, extraction systems and hot water all contribute to higher energy consumption. Our team understands these demands and compares business energy contracts based on how your restaurant operates, rather than using a one-size-fits-all approach.Dedicated account management
You'll have a dedicated account manager who understands your business, contract position and renewal dates. From your initial comparison through to switching suppliers and future renewals, you'll have a single point of contact who can answer questions and provide ongoing support.
Transparent advice
We explain every energy contract clearly, including unit rates, standing charges, contract length and supplier terms, so you know exactly what you're agreeing to. There is no obligation to switch, no hidden fees and commission is always disclosed on request.
Calls answered within three rings
We know restaurant owners are busy, particularly during service periods. That's why we aim to answer calls within three rings, providing prompt, knowledgeable support whenever you need us.FAQs about restaurant energy contracts
How do you find the best energy supplier for a restaurant?
There is no single best energy supplier for every restaurant. The right supplier depends on your annual electricity and gas usage, opening hours, kitchen equipment, contract length and current energy rates.
Rather than accepting your existing supplier's renewal offer, you should compare business energy suppliers to review unit rates, standing charges and contract terms. This gives you a clearer picture of the total cost rather than focusing on the headline rate alone.
Business Utility Hub compares restaurant energy contracts from a trusted network of UK suppliers, helping you find a deal that reflects how your business operates.
What is the average monthly energy cost for restaurants?
There is no standard monthly energy cost for restaurants because every business uses energy differently.
A small café with limited opening hours will usually have lower energy bills than a large restaurant with commercial kitchens, extensive refrigeration, extraction systems and long trading hours.
Your monthly costs will depend on several factors, including your annual energy consumption, unit rates, standing charges, contract type and whether you use gas, electricity or both. Two restaurants with similar energy usage can still have different monthly bills if they are on different business energy contracts.
Reviewing both your energy consumption and your current tariff is the best way to understand whether your costs are being driven by usage, your contract or a combination of both.
How much electricity does a restaurant use?
Electricity consumption varies considerably between restaurants. It depends on the size of the premises, opening hours, the type of catering equipment used and the number of customers served.
Restaurants typically use electricity to power:
- Commercial cooking equipment.
- Refrigeration and freezers.
- Extraction and ventilation systems.
- Lighting.
- Heating and air conditioning.
- Dishwashers.
- Point-of-sale systems.
- Food preparation equipment.
Restaurants often use significantly more electricity per square foot than many other commercial buildings because much of this equipment operates for long periods throughout the day.
Understanding your annual electricity consumption makes it easier to compare business energy contracts and identify opportunities to reduce both energy usage and operating costs.
Compare restaurant energy rates today
Whether you're looking to reduce your monthly energy cost for a restaurant, review an upcoming renewal or move away from expensive deemed or out-of-contract rates, Business Utility Hub is here to help.
We support independent restaurants, cafés, pubs, hotels and multi-site hospitality businesses, comparing business gas and electricity contracts from a trusted network of UK suppliers.