Industry
Commercial electricity for restaurants
Kitchen equipment and refrigeration create sharp, repeated demand peaks against modest floor area.
Restaurants typically run a low to moderate load factor, which means demand charges and rate schedule fit usually matter more than the supply rate. Kitchen equipment and refrigeration create sharp, repeated demand peaks against modest floor area.
Two service peaks against a low overnight base. The evening peak usually sets the demand charge, and it is set by the kitchen line and exhaust running together.
Illustrative shape, not measured data. It shows the pattern this kind of operation tends to follow, which is why its bill behaves the way it does. Your real profile comes from your own interval data, and it is the only version that can produce a number.
What the federal building survey says
In 2018 the U.S. Energy Information Administration surveyed 6,436 commercial buildings and recorded the electricity each used. These are the surveyed buildings that match restaurants, in kWh per square foot per year. Each is a whole building classed by what fills the most of it, so a single tenant space inside a larger building can use more or less.
Any restaurant, café, bar or bakery
39.8kWh per sq ft a year, median
The middle half of surveyed buildings used 23.1 to 58.8. Nearly all fell between 13.5 and 83.2.
A typical one is 3,500 sq ft. At the median that is about 139,230 kWh a year, roughly $1,800 a month at the US average commercial price.
218 surveyed buildings Solid
Estimate your buildingSit-down restaurant or cafeteria
37.1kWh per sq ft a year, median
The middle half of surveyed buildings used 21.1 to 52.1. Nearly all fell between 12.5 and 78.1.
A typical one is 3,850 sq ft. At the median that is about 142,835 kWh a year, roughly $1,800 a month at the US average commercial price.
132 surveyed buildings Solid
Estimate your buildingFast food or quick service
59.7kWh per sq ft a year, median
The middle half of surveyed buildings used 42.3 to 83.1. Nearly all fell between 28.8 and 115.0.
A typical one is 3,300 sq ft. At the median that is about 197,109 kWh a year, roughly $2,500 a month at the US average commercial price.
54 surveyed buildings Fair
Estimate your buildingSurvey year 2018, so this is the usage pattern, not a forecast. Prices here are today's: the US average commercial price for the 12 months to the latest EIA month. The cost estimator does the same for your own floor area and state.
What drives the load
- Cooking line and exhaust hood
- Walk-in and reach-in refrigeration
- Make-up air and HVAC
- Dish machine and water heating
- Lighting and signage
The trap this industry falls into
Demand charges are frequently the second-largest line on a restaurant bill after supply, and they are set by a handful of fifteen-minute intervals during service. An operator who switches suppliers to chase a lower supply rate has not touched the part of the bill that is growing.
What to actually do
- Stagger equipment start-up so the whole line does not energise at once
- Check whether the account sits on a demand-metered schedule that its load factor does not justify
- Verify exhaust hood controls are modulating rather than running flat out
- Confirm refrigeration is not fighting a failing door seal or condenser
Which half of the bill to attack
A commercial bill splits into supply, which a competitive supplier can price where a competitive market exists, and delivery, demand, fixed charges and riders, which stay regulated whichever supplier you use. Load factor decides which half is worth your attention, and for restaurants the answer is usually clear.
At a low to moderate load factor, the peak is doing disproportionate damage relative to total consumption. Demand charges and rate schedule fit therefore usually matter more than the supply rate, and an operator who switches supplier to chase a lower supply price has left the growing part of the bill untouched.
This is also why a supply quote alone is a misleading answer for this industry. It is priced against the half of the bill that is not the problem.
The mechanics behind this: load factor, demand charges and rate schedule fit.
What we need to give you a real answer
- 12 months of bills
- Peak kW by month
- Whether the site has one meter or separate kitchen and dining meters
- Hours of operation by day
The item that most often turns a vague conversation into a specific finding is twelve months of peak kW. A single bill shows what you paid; twelve months of demand readings show the shape that caused it, and the shape is where the recoverable money is.
Send one recent bill. We compute the supply, delivery and demand split for your account and tell you which of the levers above is actually worth your time.