Energy is a significant operating expense for hotels, restaurants, pubs, cafs and other hospitality businesses. Unlike a conventional office, a hospitality venue may need to power kitchens, refrigeration, heating, hot water, ventilation, lighting and guest facilities for long periods every day.

That makes energy management an important part of controlling overheads. The good news is that reducing gas and electricity costs does not necessarily require expensive renovations. Better operating routines, closer monitoring and carefully planned equipment upgrades can all make a difference.

Government-backed hospitality trials have also demonstrated the potential of relatively simple changes. In March 2026, the UK Government reported that 90 hospitality businesses taking part in an energy-saving trial reduced their average annual energy bills by nearly 2,500, with some participants cutting overnight consumption substantially.

Where Do Hospitality Businesses Use the Most Energy?

Every venue has a different consumption pattern. A small cafe with electric cooking equipment will use energy differently from a large hotel operating guest rooms, commercial laundry facilities and function spaces.

However, several areas deserve particular attention.

The Carbon Trust identifies heating, hot water, ventilation, air conditioning, lighting, catering and leisure facilities among the main opportunities for hospitality businesses to improve energy efficiency.

Start by Understanding When Energy Is Being Wasted

Before buying new equipment, businesses should establish where and when energy is being consumed.

Monthly bills provide a useful starting point, but they do not always reveal operational waste. Smart meters and more detailed monitoring can help managers identify consumption outside normal trading periods.

For example, a restaurant might discover that extraction equipment remains operational long after the kitchen closes. A pub may find that heating starts several hours before customers arrive, while a hotel might be heating areas with very low occupancy.

The Government’s business energy guidance recommends conducting an energy usage assessment and using smart-meter information to gain greater control over consumption.

Compare Usage With Trading Patterns

Managers can compare hourly or daily energy consumption against opening hours, covers, room occupancy or revenue.

A busy Saturday will naturally consume more energy than a quiet Tuesday. The important question is whether consumption falls appropriately when demand falls.

If overnight or closed-period consumption remains unexpectedly high, the business can investigate which equipment is responsible.

Review Gas and Electricity Contracts

Reducing consumption is only one side of controlling energy expenditure. Businesses should also examine how much they are paying for each unit of energy.

Commercial energy agreements can differ considerably in their structure, contract duration, standing charges and unit rates. Businesses approaching the end of a contract can review the market rather than automatically accepting a renewal.

When comparing the best energy supplier options, hospitality operators should consider the complete contract rather than focusing exclusively on the advertised unit rate.

Contract length, standing charges, payment terms, exit conditions and the business’s expected consumption should all be considered. Government guidance similarly recommends reviewing tariffs and comparing supplier offers before agreeing a business energy contract.

Make Commercial Kitchens More Energy Efficient

The kitchen can be one of the most demanding areas of a restaurant, hotel or pub.

A common source of unnecessary consumption is switching everything on at the beginning of a shift. Ovens, grills, fryers and extraction systems may then operate for hours before they are actually required.

A better approach is to create equipment schedules based on preparation and service times. Equipment that needs only a short warm-up period can be switched on closer to the point of use.

Extraction systems should also match kitchen activity. British Gas advises restaurants to switch off kitchen extraction hoods when they are not needed.

Maintain Kitchen Equipment

Grease, dirt and poor maintenance can make equipment work harder. Regular cleaning and servicing can therefore support both reliability and energy efficiency.

When appliances eventually need replacing, energy consumption should be considered alongside purchase price, capacity and maintenance costs. A cheaper appliance that consumes considerably more electricity throughout its working life may prove more expensive overall.

Pay Close Attention to Refrigeration

Refrigerators and freezers are particularly important because many operate 24 hours a day.

Poor door seals, blocked ventilation, dirty condenser coils and unnecessarily low temperature settings can increase consumption. Staff should also avoid leaving cold-room and refrigerator doors open while loading or unloading supplies.

Refrigeration should be included in routine maintenance rather than checked only when something fails.

Position matters as well. Where practical, refrigeration equipment should not be placed immediately beside ovens or other significant heat sources because additional surrounding heat can increase the workload on the cooling system.

Control Heating Without Making Guests Uncomfortable

Reducing energy costs should not mean creating an uncomfortable environment.

Instead, businesses can focus on heating the right spaces at the right times. Zoned controls are particularly useful in larger hotels, restaurants and pubs because different parts of the building may have different requirements.

A hotel, for example, may not need to heat an unoccupied floor to the same level as occupied bedrooms. A pub’s function room may require heating only when an event is scheduled.

The British Business Bank notes that heating can account for more than 40% of energy use in non-domestic buildings and highlights zoning, appropriate temperature management and regular boiler servicing as potential efficiency measures.

Reduce the Cost of Lighting

Lighting is another area where relatively straightforward improvements can produce long-term savings.

Replacing older bulbs with LEDs can reduce electricity consumption while also reducing replacement frequency. Occupancy sensors can be useful in toilets, storage areas, staff rooms, corridors and other spaces that do not require continuous lighting.

Hotels can also consider room controls that prevent lights and certain electrical systems from operating unnecessarily when guests leave.

Natural daylight should be used effectively where possible, particularly in reception areas, cafs and dining spaces.

Get Employees Involved in Energy Management

Technology alone will not eliminate waste if everyday operating habits remain inefficient.

Managers can introduce simple opening and closing procedures specifying which equipment should be switched on, when it should start and who is responsible for switching it off.

Energy performance can also be discussed during staff meetings. Employees working with equipment every day may notice inefficient routines that managers overlook.

The aim is not to make employees constantly think about electricity consumption. It is to make efficient operation part of the venue’s normal routine.

Measure Whether Energy-Saving Changes Actually Work

Businesses should record energy consumption before making significant changes and compare it with consumption afterwards.

The Carbon Trust recommends establishing a baseline, identifying opportunities, prioritising actions and then measuring savings after improvements have been introduced.

Managers should also account for seasonal changes and trading levels. A hotel using less gas during a warm month has not necessarily become more efficient, just as a restaurant serving considerably more customers may legitimately consume more electricity.

Useful measures can include energy consumption per guest night, restaurant cover, square metre or 1,000 of revenue.

A Practical Long-Term Approach to Hospitality Energy Costs

Reducing gas and electricity expenditure is rarely achieved through one dramatic change. The strongest approach combines efficient equipment, sensible operating routines, maintenance, monitoring and periodic reviews of energy contracts.

Hospitality businesses can begin with low-cost actions such as checking timers, switching off unnecessary extraction, improving refrigeration practices and reviewing overnight consumption. Savings from those measures can then help justify investment in LEDs, controls, efficient kitchen appliances, insulation or heating upgrades.

Most importantly, energy management should become an ongoing business process rather than something reviewed only when a large bill arrives. A venue that understands when, where and why it consumes energy is in a much stronger position to control costs without compromising food quality, guest comfort or service standards.