Six Simple Changes that Improve Restaurant Efficiency
The restaurant industry has low margins, so every dollar a restaurant can save improves its ability to thrive. Energy costs are a substantial source of overhead for restaurants, and investments in energy efficiency can provide a tangible return, allowing you to focus on what really matters: the dining experience.
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Key Takeaways
The restaurant industry spends an astounding $20 billion each year on energy expenses, consuming enough electricity to power 15 million homes. Due to commercial kitchen appliances and long hours of operation, restaurants are five to seven times more energy intensive than other commercial buildings. Most restaurants operate with low margins, so any effort to save energy in restaurants has a massive impact on their bottom lines. Discover the six simple changes that improve restaurant efficiency and lower energy costs.
- Restaurants are highly energy-intensive, making efficiency improvements critical for reducing overhead costs
- Automating operations and adopting digital systems can lower labor and energy usage simultaneously
- Upgrading to energy-efficient appliances and smart technologies drives long-term savings
- Staff training and consistent energy practices help sustain efficiency improvements over time
Energy Saving Practices for Restaurants
1. Automate Restaurant Operations
There are several restaurant operations that can easily be automated: creating reservations, takeout, and delivery services. Labor costs account for roughly 30% of a restaurant’s budget. By automating these simple tasks, your staff is able to spend more time focusing on customer experience. Furthermore, reducing congestion and traffic in your restaurant’s waiting area will also reduce heating and cooling expenses.
2. Adopt an Electronic Ticketing System
Not only does electronic ticketing streamline how your kitchen receives orders, but it also speeds up end of day accounting. Your closing staff will save a significant amount of time if they don’t have to manually calculate each meal ticket. This, in turn, shortens the time it takes to close the restaurant, leading to lower labor costs. As an added bonus, closing earlier means saving more on electricity expenses.
3. Establish Inventory Management
In an average restaurant, food costs account for 20 to 40% of overhead expenses. Creating an inventory management plan helps reduce waste and encourage more efficient cooking practices. 58% of restaurateurs struggle with inventory management, often resulting in over-ordering supplies. Pairing your POS inventory management system with weekly manual inventory checks can help reduce food waste substantially. You can also use inventory management software to make inventory even easier while receiving food cost reports and alerts when supplies are low.
While contemplating waste reduction, consider implementing a recycling program for kitchen staff or making the switch to compostable takeout containers. These low-cost efforts promote a healthier environment while establishing an eco-friendly restaurant reputation that can draw new clientele.
4. Invest in Energy-Efficient Appliances
It takes a lot of electricity to power dinner rush or Sunday brunch. For example, a standard commercial deep fryer consumes over 18,000 kWh annually, 6,000 kWh more than an entire U.S. household consumes in a year. Upgrading to energy-efficient appliances, especially those bearing the Energy Star seal, can reduce these power demands considerably.
Energy star is the government backed seal of energy efficiency. Restaurants that upgrade their kitchens with energy-efficient models can save up to $5,300 each year on energy expenses. Additionally, more than 200 U.S. utility companies offer financial incentives or rebates for restaurants investing in efficient kitchen equipment. Explore Energy Star’s rebate finder for more details on available incentives!
5. Implement Smart Technologies
When it comes to restaurant energy savings and lowering overhead, let smart technology do the heavy lifting. Heating, ventilation, and air conditioning (HVAC) account for 28% of a restaurant’s energy consumption. Installing a smart thermostat with programming features like zoning and operational schedules can help you save up to $180/year. Lighting is another expense that runs under the radar, accounting for 13% of restaurant energy consumption. Motion sensors or smart LED lighting systems can reduce lighting expenses by 35% to 70%.
A building energy management system (EMS) consolidates all your smart technologies into one user-friendly interface. EMS solutions can be integrated with lighting, HVAC, security, and any electronics attached to a smart plug for easy, remote access. They also provide real-time energy consumption data and alert you to any building system issues before they become costly repairs.
6. Train Staff on Energy-Saving Practices
Incorporate energy efficiency and conservation training into staff meetings. Improving restaurant energy efficiency is much more successful as a collective practice than an individual goal. Consider establishing temperature guidelines for staff to open windows for customer comfort, reducing HVAC expenses. Another helpful practice for staff is creating an end-of-day power down procedure. This ensures that all appliances, lighting, and electronics aren’t left on overnight, consuming unnecessary power. Training empowers your staff to participate in energy saving initiatives and cultivates a culture of sustainability and energy conservation.
Want your staff to participate in identifying energy-saving opportunities? Try Energy Star’s interactive Energy Treasure Hunt, which is a self-paced energy assessment of your premises. This collaborative activity helps identify simple building upgrades to reduce energy usage.
Saving Energy in Restaurants is a Recipe for Success
Implementing any of these six simple changes can significantly improve restaurant efficiency and lower energy costs. By adopting smart technologies and energy-saving practices, restaurants can improve their bottom line while promoting sustainability. To further reduce your restaurant’s energy bills, consider pairing these strategies with a fixed-rate commercial energy plan. Integrity Energy’s commercial energy brokers create tailored solutions with the most competitive rates on the market. Request a free quote to take control of your restaurant’s energy bills today!
Boost Restaurant Efficiency and Lower Costs
Take control of your restaurant’s energy expenses with smarter strategies and expert support. Connect with energy professionals to find cost-effective solutions tailored to your operations.
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Rob Barto
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