Inflation and rising wages are soaring, cutting into many restaurant owners’ already-thin profit margins. Salaries in the US restaurant industry increased by 14% in 2021. Meanwhile, ingredients became more expensive by an average of 10.5%, with US beef, chicken, and cooking oil leading the way with price increases of 41%, 36%, and 39%, respectively.
There’s only a limit to how much rising restaurant costs can be passed on to consumers before they stop giving restaurants their business. In America, menu price jumps are at their highest in 40 years. How will owners cope?
Cutting back on salaries is obviously out of the question. Finding a cheaper location is a lengthy process and may not be applicable for everyone. Restaurants consume up to seven times more power than the average commercial establishment, so it is imperative to find ways to save on restaurant electricity costs. Here are six ways to help you achieve that.
1. Switch to LED light bulbs
LED light bulbs use less energy than incandescent bulbs – at least 75%, according to the US Department of Energy – and last up to 25 times longer. One study points out that using an LED bulb for 25,000 hours consumes $30 in electricity costs, while an incandescent bulb would cost you $169.
By making the switch, you can lower your power bill and reduce light bulb replacement costs.
2. Upgrade all kitchen equipment with energy-efficient models
Why aim for LED light bulbs alone when you can also make the switch with your kitchen equipment?
Energy-efficient appliances do the same amount of work as their electricity-thirsty counterparts, but at a fraction of the electricity cost.
Take fryers, for example. According to the US Environmental Protection Agency (EPA), an energy-efficient standard size electric fryer saves $120 per year in electricity consumption. This number goes up to $460 for a gas fryer, and up to $520 for large vat fryers.
Fryers, griddles, ice makers, ovens, steam cookers, refrigerators, and all other appliances in the kitchen that are involved with food preparation make up at least 35% of a full-service restaurant’s electricity costs.
If there’s an area where you can make the most impact on your electric bill, this would be it.
The EPA has a guide on all the kitchen appliances you can upgrade and how much these can save you on your next bill.
3. Clean and do regular maintenance on your appliances
Take, for example, the air conditioner unit that’s keeping you cool as of this moment: if its air filters get clogged with dirt, it will have to consume more power just to do the same amount of work.
Refrigerators and freezer gaskets wear out easily from all that opening and closing, allowing cool air to escape and hot air to get in. Condenser coils get caked with grease and dirt, making it harder to expel heat from these appliances. Have them regularly checked to identify when they need to be replaced.
The same goes for any of your other restaurant’s appliances. Keeping them regularly clean helps them consume electricity at an efficient rate, saving you more money on your next utilities bill. Regular maintenance also involves replacing parts to keep your appliances at peak performance.
4. Keep it cool: reduce your kitchen’s ambient temperature
Let’s stick to the topic of fridges for a moment. The temperature of the air around it affects its performance: the hotter the air, the harder a fridge has to work to keep the food chilled.
Keeping a lid on your kitchen’s ambient temperature reduces the stress on your refrigerators and freezers. Start by optimizing your kitchen’s layout and separating cooling appliances from heating appliances. The less hot air around your fridges and ice makers, the less they have to work to keep cool.
Review the condition of your kitchen exhaust hoods and consider whether you need to enhance your installation. Not only do they filter out grease and dirt that build up in your kitchen’s hard-to-clean areas; kitchen hoods also reduce the temperature in the air circulating inside your kitchen.
Finally, consider switching to induction stoves, cooktops, and other induction equipment when it’s time to replace existing equipment. They release less heat into their surroundings and also consume less electricity.
5. Turn off any equipment you aren’t using
Remember, if something is plugged in, it’s adding to your restaurant electricity costs even if you aren’t using it. You end up paying for energy you haven’t used at all.
Start by simply turning off the lights in unused areas of your restaurant. Place clear, readable signs reminding your staff to turn lights off when leaving the room. Consider turning off the fryer during off-service hours and then preheating once business starts again.
Use a power strip for office equipment such as printers, computers, and phones. Instead of having to individually unplug each one, you only need to press a switch.
6. Go paperless for your receipts and order slips
You can go further and minimize printer use by switching more of your ordering services process to digital. Having a QR code-based ordering system allows you to send your customers’ receipts via SMS or email, while a top-notch kitchen display system sends their online, dine-in, or take-away orders directly to the kitchen without having to write them down on order slips.
Power up your business by lowering energy costs
Remember, you don’t have to pass all rising costs to loyal customers and risk losing their business. Cutting down on your restaurant electricity costs will go a long way in protecting your long-term viability. Especially since restaurants consume up to seven times more power than the average commercial establishment.
This doesn’t require powering your whole restaurant with solar panels or making large investments in similar power-generating alternatives, although the building or mall you are located in should probably start thinking about this down the line.
Start with something relatively simple, like changing kitchen appliances’ positioning, or ensuring all lights are turned off when not in use.
More strategic changes, such as upgrades to your kitchen equipment and POS system, will eventually be offset by visible savings on your utility bills throughout your new equipment’s lifetime.
(Originally published here)
rafael antonio dulce 