Do you ever think of wasting energy like shrinkage?
Imagine if an employee was stealing a few dollars every day. Would you take immediate action? Perhaps even consider termination? Stealing is inherently wrong for many reasons, including that it “takes money out of our pockets.” Most of us have zero tolerance for theft.
But what if an employee was setting the thermostat too high or too low or leaving the lights on overnight? These actions lead to financial losses as well. Yet, many business owners would overlook them. Why is that?
As a restaurant owner or operator, you aim for profitability and smooth operations. These are two pillars of running a successful franchise. However, challenges like labor shortages, minimum wage increases, rising food costs, escalating energy expenses, and overall inflation make it tougher to achieve these goals. The last thing you need is to waste money or complicate things further for yourself or your team.
While some factors affecting your business are beyond your control, what if you could manage and reduce some of this waste? Energy costs rank among the top five expenses for most restaurants. Many owners assume energy usage is “uncontrollable” and believe there’s little they can do to reduce it—or they simply don’t know where to begin. The first step is changing your mindset.
Rethink Energy Waste as a Form of Loss
Think of energy waste as a form of shrinkage or even theft. You would act quickly if you discovered an employee was stealing—even just a dollar a day. But what would you do if someone left the thermostat running unnecessarily or forgot to turn off the parking lot lights after the morning rush? Wasting energy happens daily, costing more than a few dollars, yet often goes unaddressed.
Start with Your Energy Bills
Understanding your energy bills is crucial. Many utility bills can be complicated, with numerous line items contributing to the total. For instance, one customer we worked with had utility bills at each location with over twenty individual charges! Rate plans often include charges based on usage, location, time of day, and peak demand. The good news? Resources are available to help you. Utility companies typically offer support to explain how your energy consumption impacts costs. Beyond that, independent ‘Certified Energy Managers’ are certified professionals trained to assist in reducing energy consumption and spending.
Where Restaurants Use Energy
Examining how energy is used in a typical restaurant can reveal opportunities to prioritize improvements. Here are some effective ways to lower energy costs based on our experience working with restaurants for decades.
1. Food Preparation
Food prep is the largest slice of energy use and is understandably critical to your business. Kitchen equipment manufacturers are continually improving energy efficiency, so consider replacing older models and ensure your team utilizes energy-saving features. Franchisors also often provide best practices for start-up and shutdown schedules to minimize equipment runtime and spread out peak usage, potentially reducing costly peak-demand charges.
2. HVAC, Lighting, and Refrigeration
These three areas together account for nearly half of a restaurant’s energy consumption, and here, you have more control than you might think.
Educate Your Employees
- Communication: Human behavior significantly influences energy use. Regularly remind your team that energy efficiency is a goal. Misguided actions, like leaving doors open, directly impact costs.
- Set Clear Guidelines: Specific reminders, such as setting back thermostat temps, turning off unnecessary lights, and keeping walk-ins closed, can all contribute to better energy outcomes.
- Manager Reminders: Emphasize to managers that wasting energy is similar to shrinkage. For instance, leaving an AC unit on overnight could cost over $20 per night, and a walk-in door left open for an hour could waste $10 in energy and risk inventory and food safety.
While this might sound like common sense, these basics are often overlooked. Make energy-saving part of your culture.
Automate Building Controls
- Thermostats and Lights: Relying on employees to adjust these daily can lead to both energy waste and inefficient use of their time. Consider installing smart thermostats, lighting schedules, or an energy management system to automate control over HVAC, lighting, and more.
- Walk-ins: Many walk-in units use outdated controls, triggering defrost cycles every few hours regardless of need. Switching to intelligent refrigeration controllers can reduce defrost cycles by up to 70%, helping maintain tighter temperature control and reducing maintenance costs.
- Reach-in Refrigeration: Maintaining a steady temperature set point not only improves food safety but also reduces energy waste. Automated temperature sensing systems can notify you of issues, helping you save on energy and avoid food safety risks.
Our energy management platform eViewIoT is designed for restaurants and can simplify these measures, allowing you to monitor and control high-energy equipment. With internet connectivity, our restaurant energy management system provides alerts and remote access, reducing energy consumption and maintenance costs.
A Path to Efficiency and Profitability
By rethinking energy waste as financial loss, training your team on best practices, and automating energy management, you can create a more profitable and efficient restaurant. In a world where costs are rising, taking control of your energy usage offers a practical solution to protect your bottom line and create a culture of responsibility.