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Industry guide

Business Energy Prices for Restaurants

Restaurant energy prices are shaped by intensive kitchen loads, long opening hours and a heavy reliance on gas for cooking alongside electricity for refrigeration, lighting and extraction. A typical independent restaurant uses between 40,000 and 90,000 kWh of electricity and 30,000 to 70,000 kWh of gas per year, though this varies with covers served and kitchen size.

Because kitchens run hot equipment for extended service periods, restaurants often carry higher-than-average standing charges relative to a similar-sized office, reflecting the capacity needed at the meter. Peak lunch and dinner service loads also push up demand-related costs on some tariffs.

Compare Market works with restaurant operators across the UK to benchmark electricity and gas rates against sector averages, checking meter type, contract end dates and consumption patterns before recommending a switch or renewal.

  • Typical electricity use: 40,000 to 90,000 kWh a year; gas use: 30,000 to 70,000 kWh
  • Cooking ranges, extraction, fridges and freezers are the largest cost drivers
  • Gas usually accounts for 40 to 55 percent of total energy spend where mains gas is used for cooking
  • Standing charges tend to be higher due to three-phase supply and extraction plant capacity
  • Fixed contracts of 1 to 3 years are common to manage volatile food-service margins
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Typical restaurant energy consumption

Consumption depends heavily on covers per week, menu style and whether cooking is gas or electric led. A small café-style restaurant may sit near the lower end of the range, while a full-service kitchen with multiple ovens, fryers and walk-in chillers sits at the higher end.

Restaurant sizeElectricity (kWh/yr)Gas (kWh/yr)
Small café/bistro (under 40 covers)35,000 - 55,00020,000 - 35,000
Mid-size restaurant (40-80 covers)55,000 - 90,00035,000 - 55,000
Large restaurant/multi-site kitchen90,000 - 150,000+55,000 - 90,000+
Indicative annual consumption by restaurant size Figures are indicative and vary by region, menu style and equipment age.

What drives the cost

  • Cooking ranges, combi ovens and fryers running through service hours
  • Extraction and ventilation systems required for food safety compliance
  • Refrigeration and walk-in chillers running continuously, 24 hours a day
  • Dishwashing equipment with high hot water and electricity demand
  • Front-of-house lighting, heating and air conditioning across long trading hours

Gas versus electricity split

Restaurants using gas cooking ranges typically split spend close to evenly between fuels, with gas covering cooking and hot water while electricity covers refrigeration, lighting and extraction fans. Fully electric kitchens shift the balance sharply towards electricity, often 70 percent or more of total spend.

Understanding this split matters when comparing quotes, as a supplier offering a strong electricity rate but a weak gas rate may not deliver the best overall deal for a gas-cooking kitchen.

Peak period exposure

Lunch and dinner service create sharp demand spikes as multiple appliances run simultaneously. On half-hourly metered sites this can affect capacity charges, so restaurants benefit from reviewing supply capacity against actual peak demand rather than paying for unused headroom.

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Standing charges and meter type

Most restaurants sit on a commercial quarter-hourly or standard half-hourly electricity meter, and standing charges reflect the connection capacity required for kitchen equipment. Gas standing charges are generally lower but still material given consistent daily cooking demand.

Contract length and renewal timing

Fixed-term contracts of one to three years are standard, giving cost certainty against volatile food and energy margins. Renewal quotes should be sought 3 to 6 months before contract end, since leaving it to the last minute typically means being rolled onto a supplier's more expensive out-of-contract rate.

How to compare restaurant energy prices

  • Gather 12 months of electricity and gas invoices or meter readings
  • Confirm meter type, MPAN/MPRN details and current contract end date
  • Ask suppliers to quote separately for electricity and gas so the split can be checked
  • Compare unit rates and standing charges together, not unit rate alone

Restaurants: frequently asked questions

Related business energy pages

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