Energy Management Systems

5 Benefits of Energy Management Systems for Restaurants (Pt. 1)

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In an industry where profit margins are historically thin, restaurants are constantly looking for innovative methods to reduce costs and increase revenue. Many restaurant owners are focusing on optimizing their energy usage and management to accomplish both of these goals. In an effort to explain, let's examine 5 benefits of energy management systems for restaurants.


Energy Management Systems and Restaurant Energy Usage Stats

Before we examine the benefits of energy management systems for restaurants, let's look at some key stats for energy usage with restaurants and the global market for energy management systems.

According to energystar.gov:

Restaurants use about five to seven times more energy per square foot than other commercial buildings. High-volume quick-service restaurants (QSRs) may even use up to 10 times more energy per square foot than other commercial buildings. Restaurants generally use the most electricity for refrigeration, followed by lighting, then cooling

An article on Modern Restaurant Management called: "How Restaurants Can Benefit from IoT-Enabled Energy Management", written on June 1, 2018 by Jose Matuk, explains more:

For a restaurant company, the cost of heating and cooling buildings and powering kitchen equipment represents three to five percent of total operating expenditure

Essentially, there's a lot of potential for improvement when it comes to restaurants reducing their energy costs. Many restaurant owners are turning to an energy management system for help, which is partly why the global market is set to reach $62.3 billion by 2023 with a CAGR of 13.5% from 2017 to 2023 (prnewswire.com).

While energy management systems come in different forms, essentially, they offer restaurants the ability to assess, optimize, monitor, and manage energy usage either on-site or remotely.

More comprehensive solutions include outsourced remote monitoring and management automation (MultiSite ESP manages it for you!), coordination assistance to realize rebates/incentives, multi-site equipment upgrades, cloud and mobile computing tools, and detailed custom reports.

1. Initial Assessment Identifies Inefficiencies:

The first benefit of implementing an energy management system is gaining visibility with energy usage inefficiencies. This initial assessment (or site audit) will uncover where improvements can be made and how much energy can be saved.

This initial assessment includes:

  • Lighting and signage
  • Walk-in coolers and freezers
  • Refrigerators
  • Oil fryers
  • Ovens
  • HVAC systems
  • Water usage
  • Operational workflows
  • Energy Bill

The initial assessment will give restaurant owners the clarification of what equipment and operational workflows can be optimized and how much energy can be potentially saved. Inefficiencies with equipment and workflows will be assessed to give owners and managers a comprehensive picture of their energy usage.

2. Reduced Energy Consumption Lowers Costs and Improves Green Marketability:

By reducing energy consumption, restaurants will:

  • Save significant money (Building the bottom line)
  • Ensure quality control (HACCP compliance)
  • Gain green marketability
  • Ensure an optimally comfortable environment for customers
  • Provide a safe and comfortable working environment for employees
  • Enhance the performance of equipment
  • Extend the longevity of equipment

The benefits of reducing energy extend beyond saving money, which is why the market for energy management systems is seeing so much growth. Restaurants, in particular, have more to gain than most, as the environment and reputation of their businesses directly affects their profit margins.

For example, both Shari's Cafe and Pies and Red Robin Gourmet Burgers and Brews have been featured in news stories in the last couple of years for implementing energy management systems, which goes a long way to improve their reputation and green marketability.

Summary 

Restaurants are in a prime position to benefit from saving energy and money, as their energy consumption is high and profit margins are thin. The two benefits we examined may be the most important, yet there's three more worth noting.

These can be found in part two of this topic; if the two benefits covered are convincing enough or they've sparked some questions, please contact MultiSite LED today to learn more.