Your refrigeration never stops. Neither do electricity costs.
Walk-ins running 24/7. Kitchen equipment peaking during service. HVAC working overtime to keep guests comfortable. Restaurant electricity is complicated—but your rates don't have to be.
Why restaurant electricity is expensive
Restaurants use 2-3x more electricity per square foot than typical commercial spaces. You're running energy-intensive equipment—commercial refrigeration, cooking appliances, ventilation hoods—while also keeping an open space comfortable for guests.
The worst part? Most of your electricity usage happens during peak rate hours. Dinner service coincides with grid peak demand, when rates are highest. And your refrigeration cycles harder in the afternoon heat, creating demand spikes you pay for all month.
We understand these challenges. We find rates that account for restaurant load profiles—not generic commercial plans designed for 9-to-5 offices.
Your electricity breakdown
Refrigeration
35-45%Walk-in coolers, freezers, prep station refrigeration, and display cases. This equipment runs 24/7, so even a small rate reduction adds up fast.
HVAC
20-30%Heating and cooling a space with kitchen heat, constant door traffic, and customer comfort expectations. Smart thermostats and demand controls can cut this significantly.
Cooking Equipment
15-25%Electric ovens, fryers, griddles, ranges, and warming stations. Peak usage during prep and service creates demand charge spikes.
Lighting
10-15%Dining room ambiance, kitchen task lighting, exterior signage, and parking lot lighting. LED retrofits can cut lighting costs by 50-70%.
How we cut your electricity costs
- Analyze your operating patterns
We look at when you use power—prep, service, late-night—and match you with rate structures that fit your actual schedule, not office hours.
- Shop multiple suppliers
We get competing quotes tailored to restaurant load profiles. The difference between suppliers can exceed 20%—that's real money for tight margins.
- Identify demand charge savings
Simple changes—staggering equipment startup, adjusting prep schedules—can cut demand charges 15-25% without affecting operations.
- Multi-location consolidation
For restaurant groups, we aggregate purchasing power across locations to negotiate better rates than any single location could get alone.
Restaurant types we serve
Get a Custom Quote
Free consultation, no obligation. We'll analyze your usage and find savings opportunities.
Restaurant electricity questions
How much can restaurants typically save on electricity?
Restaurants typically see 12-25% savings on supply charges by switching from utility default rates. For a restaurant spending $2,000/month on electricity, that's $240-500 in monthly savings. Full-service restaurants with extensive kitchen equipment often see the highest savings potential.
What uses the most electricity in a restaurant?
Refrigeration typically accounts for 35-45% of restaurant electricity use, running 24/7 regardless of operating hours. HVAC is second at 20-30%, followed by cooking equipment (15-25%), and lighting (10-15%). Understanding this breakdown helps prioritize efficiency investments.
Do demand charges affect restaurants?
Yes, and they can be significant. When your walk-in compressors, HVAC, and kitchen equipment all kick on during the afternoon rush, you're creating demand spikes. Staggering equipment startup and using smart thermostats can reduce these peaks by 15-25%.
Should restaurants use time-of-use rates?
It depends on your operating hours. If you do most of your business during evening peak hours, time-of-use rates could cost you more. But if you can shift prep work to off-peak morning hours and manage afternoon demand, you could save 10-20% compared to flat rates.
How do extended hours affect electricity rates?
Operating 12-16 hours per day actually improves your load factor—the ratio of average to peak demand. Higher load factor often qualifies you for better rate classes. Restaurants that run consistently use power more efficiently than businesses with sharp peaks and valleys.
Related resources
Understanding Demand Charges
Why demand charges hit restaurants hard and how to manage them.
Peak Demand Management
Strategies for reducing demand spikes during service hours.
Retail Electricity
Similar challenges if you also operate retail food service.
Business Energy Solutions
Full overview of our commercial electricity services.