About a third of restaurant bill goes towards covering the cost of energy according to new research from comparison service Uswitch for Business.
And almost one in three said that their restaurant is operating at a lower capacity than this time last year, with an average capacity of 60%.
In response to rising energy bills, restaurants are being proactive in making changes, says Uswitch, with some cutting down the menu, reducing portion sizes, and introducing dishes to the menu which require less energy to create.
Despite efforts to reduce consumption, restaurants are still facing challenges to keep their energy costs under control. One in five (20%) restaurants have had to raise prices to keep up with rising bills.
And if costs continue to rise, restaurateurs said they risk not being able to pay bills on time, potentially need to downsize or make staff redundant. Seven in 10 also expect costs to continue to rise this year.[9]
Jack Arthur, energy expert at Uswitch for Business said: “The UK restaurant industry is facing significant challenges as a result of rising energy costs combined with rising inflation.
“Rates of restaurant insolvency have increased since COVID-19 and price rises from Brexit are pushing firms to a worrying edge.
“Restaurants struggling with their energy bills should be aware of their contract end date and review the terms of any new deal before signing. If they have concerns that they aren’t getting the right level of discount or support, they should speak with their supplier and shop around where possible.
“In the meantime, it is sensible to explore measures available to make their operations more energy efficient to mitigate against price rises and high costs as much as possible.”
