Business energy for restaurants and cafes
Business energy for restaurants and cafes
Most of the energy in a restaurant or cafe goes on cooking, refrigeration, kitchen extraction, heating and hot water. Government survey data shows catering is the biggest single use of electricity in hospitality premises, so how your kitchen runs matters as much as the price you pay. When you compare contracts, look at both the unit rate and the standing charge, and check the deal suits your opening hours.
- 1We find your meter
- 2You see live prices
- 3You pick a deal
Live quotes are provided through our comparison partner. With your permission it looks up your meter and current supplier from industry databases so prices are accurate.
How much energy do restaurants and cafes use?
| Benchmark | Value | Source |
|---|---|---|
| Typical electricity use per m² (CIBSE TM46 restaurant benchmark) | 90 kWh/m²/year | GOV.UK |
| Typical heating fuel use per m², usually gas (CIBSE TM46 restaurant benchmark) | 370 kWh/m²/year | GOV.UK |
| Median total energy use per m², all hospitality premises (BEES 2014-15) | 387 kWh/m²/year | GOV.UK |
Benchmarks describe typical buildings. Your own use depends on floor area, opening hours, equipment and how efficient your building is.
What do restaurants and cafes pay per kWh?
There are no official prices by business type, but the government publishes what businesses pay by size of energy use. In Q2 2026, the smallest UK business electricity users (up to 20,000 kWh a year) paid an average of 38.36p per kWh, and those using 20,000 to 499,999 kWh paid 28.59p. The smallest gas users paid 9.31p per kWh. These government averages include standing charges and the Climate Change Levy, but not VAT. Your bill shows a unit rate plus a daily standing charge, so it won't match these all-in figures directly. See business electricity prices and business gas prices for every size band.
Choosing an energy contract for restaurants and cafes
- Look at when you actually use power. Night-rate periods fall overnight, so an evening restaurant gains little from a day/night tariff beyond its fridges; compare the total annual cost on your real usage, not the headline rates.
- If you are taking over an existing restaurant or cafe, Ofgem says you are responsible for energy used before your new contract starts and may be placed on a deemed contract, where rates can go up and down. Take meter readings on day one and agree a contract quickly.
- Match the contract length to your lease. A fixed price gives you budget certainty, but a supply contract that runs past the end of your lease can cause problems if you move.
- Running several sites? Line up the renewal dates so you can compare and renew together, but check each site's usage and meter type separately.
- If you have fewer than 10 employees and turnover or balance sheet of no more than £2 million, you are a microbusiness, and Ofgem rules mean you cannot be rolled onto a new contract for more than 12 months.
Compare prices for your business
How restaurants and cafes use energy
Across hospitality, BEES found electricity made up 52 per cent of energy use, but restaurants with gas cooking and heating lean towards gas: the TM46 restaurant benchmarks are 90 kWh/m² of electricity against 370 kWh/m² of heating fuel a year.
Ovens, fryers, grills, hobs and dishwashers. The government's Building Energy Efficiency Survey found catering was the largest single use of electricity in the hospitality sector. GOV.UK
Extract fans run whenever you are cooking. The Carbon Trust estimates that typically 65% of the energy supplied by cooking equipment is carried away through the canopy as convected heat, which the extract system then has to remove. Carbon Trust
Fridges, freezers, cold rooms and drinks chillers never switch off. BEES found chilled storage of food and drink was a significant load in hospitality premises. GOV.UK
Dining areas need heating and the kitchen needs plenty of hot water for washing up and cleaning. The CIBSE TM46 restaurant benchmark assumes about four times as much heating fuel as electricity per square metre. GOV.UK
Dining room lighting often runs all evening for atmosphere. LED replacements are now available that mimic the look of traditional filament bulbs. Carbon Trust
Opening hours, the size of the menu and when equipment is switched on explain most of the difference between similar sites. A kitchen that fires up every appliance at opening and leaves it on until close uses far more than one that switches on to match service. Refrigeration runs all year, so fridge maintenance and keeping doors shut matter every day.
Ways restaurants and cafes can cut energy use
Most modern catering equipment reaches temperature quickly. Label each appliance with its preheat time and only switch on when it is needed, and switch grills, fryers and hobs off straight after use. Carbon Trust
The Carbon Trust recommends checking oven door seals and gas burners every week. A yellow flame rather than a blue one can signal poor combustion and should be looked at straight away. Carbon Trust
Refrigeration energy use can fall by 2 to 4% for each 1°C you can safely raise the set temperature. Check units are running at the manufacturer's recommended setting, not colder. Carbon Trust
Large volumes of warm air leave through the kitchen canopy. The Carbon Trust says heat recovery devices can reclaim over 50% of that heat, often to preheat hot water, and even small kitchens can use them. Carbon Trust
Run dish and glass washers only when full, and use the residual heat to dry the contents instead of power-drying cycles. Carbon Trust
Clean grease filters and ducts on the manufacturer's schedule. The Carbon Trust says regular cleaning can make ventilation systems up to 25% more efficient than neglected ones. Carbon Trust
FAQs
How much energy does a restaurant use?
It depends on floor area, hours and menu. As a reference point, the CIBSE TM46 benchmark for a typical restaurant is 90 kWh of electricity and 370 kWh of heating fuel per square metre a year, so divide your annual kWh by your floor area and compare.
What uses the most electricity in a cafe or restaurant?
Usually cooking and catering equipment. The government's Building Energy Efficiency Survey found catering made up 54 per cent of electricity use across hospitality premises, with refrigeration, lighting and ventilation also significant.
Is a gas or electric kitchen cheaper to run?
The Carbon Trust notes that gas equipment can cost more to buy than electric but often has lower running costs, and that induction hobs can also be efficient. The right answer depends on your menu, your equipment and your unit rates, so compare running costs over the equipment's life.
Is restaurant energy covered by the Ofgem price cap?
No. The price cap only applies to domestic energy, so what you pay depends on the contract you agree. That makes it worth keeping track of your renewal date.
What happens if I take over a cafe and don't set up a contract?
Ofgem says you are responsible for any energy used before your new contract starts, and your supplier may put you on a deemed contract, where the rates can go up and down. Take meter readings when you move in and arrange a contract as soon as you can.
Sources
- CIBSE TM46:2008 Energy Benchmarks, Table 1 (reproduced by Vale of Glamorgan Council)
- BEIS (now DESNZ), Building Energy Efficiency Survey 2014-15: Overarching Report
- Carbon Trust, Hospitality: saving energy without compromising comfort (CTV058 v3, 2018)
- Ofgem, Get energy if you are moving home or business premises
- Ofgem, Set up a business energy contract
- Gas and Electricity Regulated Providers (Redress Scheme) (Amendment) Order 2024 (microbusiness criteria)
Other business types
Ready to see what your business could pay?
Compare live business electricity and gas prices for your premises in about a minute. No obligation to switch.