Restaurants average 5–7 kWh per square foot per year — significantly higher than office buildings
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Restaurants Energy Use Profile
Restaurants operations typically use 30,000–300,000 kWh/year per month. Kitchen equipment and HVAC combined accounts for the majority of consumption. Summer cooling load increases HVAC cost; holiday/tourist peaks affect certain markets
Kitchen equipment (ovens, fryers, steamers, walk-ins) accounts for ~35% of restaurant energy use
Natural gas: Ovens, ranges, fryers, steamers — natural gas is often the larger energy cost than electricity
Most Restaurants accounts are served under a Small to large commercial rate schedules depending on size. Demand charges apply in most commercial markets and can represent 30–50% of total electricity cost, independent of the supply rate.
Common Energy Challenges for Restaurants Operators
Natural gas deregulation often overlooked in favor of electricity only
High-turnover ownership leads to inherited default rates on existing accounts
HVAC accounts for ~28% — higher in summer months with make-up air requirements
Load factor of Low to moderate — sharp peaks during service periods means Restaurants facilities have variable demand profiles. Variable demand requires careful contract structuring to avoid cost surprises.
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How We Procure Energy for Restaurants Accounts
Our process for Restaurants clients:
- Load analysis: We pull 12–24 months of interval data and build your demand profile. For Restaurants accounts, we pay particular attention to peak demand events driven by Simultaneous morning prep and lunch-rush equipment use creates sharp 15-min demand peaks.
- Competitive bid: We submit your load profile to 30+ suppliers simultaneously. They compete on the same data. You get multiple offers with our plain-English translation.
- Contract review: We read every contract before recommending it — checking demand charge treatment, auto-renewal terms, ETF structure, and any pass-through mechanisms.
- Execution and monitoring: We handle contract paperwork and flag your renewal window 6–9 months before expiration.
Gas and electricity should be procured together for restaurant clients — both are competitive
Contract Strategy for Restaurants Energy Buyers
For Restaurants accounts, we typically evaluate fixed-rate contracts (12–36 months) for budget certainty. For larger or more sophisticated accounts, indexed structures that track wholesale markets may offer better economics if managed actively.
Multi-site Restaurants portfolios can aggregate load across locations for more supplier competition and often better rates per site than single-location procurement.
Restaurants Energy by State
We've built resources for Restaurants energy procurement in each major deregulated state:
- Texas Restaurants Energy
- Pennsylvania Restaurants Energy
- Ohio Restaurants Energy
- Illinois Restaurants Energy
- New York Restaurants Energy
- New Jersey Restaurants Energy
- Massachusetts Restaurants Energy
- Connecticut Restaurants Energy
- Maryland Restaurants Energy
- Michigan Restaurants Energy
Frequently Asked Questions
What do Restaurants businesses typically pay for electricity?
Restaurants facilities typically use 30,000–300,000 kWh/year per month. Rates vary by state, market conditions, and contract structure — generally 6–12 cents/kWh all-in in competitive markets.
What drives electricity costs for Restaurants operations?
Kitchen equipment and HVAC combined is the primary electricity consumer in most Restaurants facilities. Natural gas deregulation often overlooked in favor of electricity only
What contract type is best for Restaurants energy buyers?
Gas and electricity should be procured together for restaurant clients — both are competitive Most Restaurants operators benefit from fixed-rate contracts for budget stability.
How do demand charges affect Restaurants facilities?
Demand charges — based on peak 15-minute interval demand — can represent 30–50% of a Restaurants electricity bill. Peak demand is typically driven by Simultaneous morning prep and lunch-rush equipment use creates sharp 15-min demand peaks.
Can a broker help with multi-state Restaurants energy procurement?
Yes. We aggregate load across multiple locations and run unified quote processes. Multi-site procurement creates more supplier competition and often produces better rates than procuring each location separately.