How to reduce the energy bill of your restaurant?

Concrete solutions to save energy

Possible savings in the kitchen

Here is an overview of simple actions you can take to help your operations:

• Remind your operatives to turn off devices when not in use.
• Using lids on pots and pans during cooking, cooking is faster and therefore saves money.
• Avoid opening the oven door to avoid lowering the temperature.
• Allow food to cool before putting it in the refrigerator.
• Keep refrigerated equipment as far away from heat sources as possible if your kitchen layout is not optimized.
• Consolidate inventory and delivery times to limit opening of the refrigerator and freezer.

Limit the cost of lighting

Some equipment to reduce energy consumption in the room:

• If this is not yet the case, you can opt for LED bulbs recommended for their low consumption and their life span. Despite their higher purchase price, they are more profitable in the long term, their life span is about ten years on average.
• How to limit unnecessary electricity expenses? Motion sensors, especially in restaurant restrooms, can save money because electricity is only used when necessary. 

Monitor heating and ventilation

• You can start by checking for hot or cold drafts: are there blocked radiators? or heat loss due to poorly insulated doors or windows?
• Then you can regulate the ventilation. Thanks to a variable speed drive, it is possible to adapt the speed of the fan according to the needs of the day.
• And why not reuse the hot air created in the kitchen? It is possible to recover this hot air with energy recovery devices that will be used to produce hot water for the sanitary facilities or to produce clean hot air to replace the heating.

In this first part, we have focused on concrete ways that are within everyone's reach. To support the restaurants and businesses most affected by the energy price hike, the government has set up financial aid to be paid by the state and a tariff shield to limit prices. Let's review what was planned for 2022, then we'll discuss the latest announcements made on November 19 and what could be concretely implemented in 2023.

State aid to pay energy bills in 2022

TICFE and ARENH

All companies benefit from the reduction of the tax on electricity (TICFE) to its European legal minimum. In 2022 and 2023, the tax cut represents a support of 8.4 billion euros for companies. Companies can also benefit from the ARENH mechanism, which allows them to obtain a significant portion of their electricity at a fixed price of €42/MWh, rather than the market price. To benefit from this, the company must contact the energy supplier.

The tariff shield to limit energy prices

Companies that have signed an energy contract with a regulated tariff can benefit from the tariff shield if they meet the following conditions:

• Companies with less than 10 employees
• Less than 2 M€ of turnover
• With an electric meter of less than 36 kVA 

The tariff shield limits the increase in regulated electricity sales tariffs (TRVe) to an average of 4% including tax until February 2023. 

If you have not subscribed to a regulated or indexed tariff contract, as a company, it is preferable to check the contractual obligations, expiration dates, possible penalties for termination before the end of the contract and negotiate with your supplier.

The Electricity and Gas Bill Payment Assistance Window

A new scheme makes it easier to access grants to support businesses whose gas and electricity expenses represent a high proportion of expenses. The Gas and Electricity Assistance Window aims to offset the increase in energy expenses over the period March 1, 2022 to December 31, 2022.

Indeed, if the company justifies an electricity and/or gas bill that has increased by 50% over three months (in 2022 compared to 2021) and that the bill corresponds to at least 3% of the turnover achieved in 2021, it can benefit from the aid. 

The aid calculation file is available on the tax site. You can also access a simulator set up by the Government to check the conditions of eligibility and the amount of aid: Energy aid simulator - impots.gouv.fr.

For the months of September and October 2022, the aid application window opened on November 19. The window for the following period (November - December 2022) will open in early 2023.

State aid to pay energy bills in 2023

Following the new announcements made by the government on October 27, 2022 and November 19, 2022, here is a summary of what could be put in place:

In 2023 the tariff shield would be maintained for VSEs meeting the criteria. 

This device would limit the rate increase to 15%, starting in January 2023 for gas and February 2023 for electricity.

Implementation of a new electricity damper device starting January 1, 2023:

• All VSEs that are not protected by the tariff shield (because they have an electricity meter with a power higher than 36 kVA) as well as all SMEs would benefit from a new electricity buffer.
• This system would consist of a flat-rate aid of 25% on the consumption of companies to compensate for the difference between the floor price of 325€/MWh and a ceiling price of 800€/MWh, i.e. a maximum aid of 120€/MWh.
• The price reduction induced by the electricity damper would be automatic and directly deducted from the company's electricity bill. The state would pay financial compensation to the energy suppliers.
• For VSEs not eligible for the tariff shield as well as all SMEs, the shock absorber would replace the help desk for the payment of electricity bills but they will still be able to benefit from the help desk for their gas bills.

Thus, in 2023, the electricity assistance window will only concern ETIs (intermediate-sized companies) and large companies.

Evolution of the Electricity and Gas Bill Payment Assistance Window:

Two eligibility criteria would be used:

• The price of energy during the application period is double the average price paid in 2021.
• Energy expenses during the application period represent + 3% of sales in 2021.
  

By the end of 2022, doubling of the aid ceilings:

• Aid of up to 4 million euros: the amount corresponds to 50% of the difference between the 2021 bill plus 50% and the 2022 bill.
• 50 million: the amount corresponds to 65% of the difference between the 2021 bill plus 50% and the 2022 bill.
• 150 million: the amount corresponds to 80% of the difference between the 2021 bill plus 50% and the 2022 bill.
  In all cases, the amount of aid would be capped at 70% of the company's consumption in 2021.

Implementation of a counter-guarantee by the State on the bank guarantees requested by energy suppliers from their client companies.

Thus, companies that default on their energy bills and whose guarantee would be activated could rely on the State as guarantor(Statement by Bruno Le Maire, October 5, 2022).

I hope this article helps you in your efforts. In this time of inflation, all expense items need to be watched closely. At Inpulsewe enable restaurant chain managers and field managers to centralize all their purchasing data and optimize their material costs. Despite fluctuations in raw material prices, it is possible to gain margin points by optimizing inventory management and accelerating decision making thanks to data and artificial intelligence.

We help more than 1,200 restaurants, dark kitchens, bakeries and themed corners optimize their material costs. Find out how they achieved their goals in just a few weeks.