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 can we limit unnecessary electricity consumption? Motion sensors, particularly in restaurant toilets, can help you save money, as 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 ventilation. Thanks to a variable speed drive, you can adapt the fan speed 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 businesses will benefit from the reduction in the tax on electricity (TICFE) to its legal European minimum. In 2022 and 2023, the tax cut represents support of 8.4 billion euros for businesses. Companies can also benefit from the ARENH mechanism, which enables them to obtain a significant proportion of their electricity at a fixed price of €42/MWh, rather than at the market price. To benefit from this mechanism, companies must contact their 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 facilitates access to subsidies to support businesses whose gas and electricity expenditure represents a high proportion of expenses. The aim of the "Gas and electricity" grant scheme is to offset the increase in energy costs over the period March 1, 2022 to December 31, 2022.

If the company can prove that its electricity and/or gas bill has increased by 50% over three months (in 2022 compared with 2021), and that the bill represents at least 3% of sales in 2021, it is eligible for assistance. 

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.

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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.
• The scheme would consist of a flat-rate 25% subsidy on company consumption to offset the difference between the floor price of €325/MWh and a ceiling price of €800/MWh, i.e. a maximum subsidy 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 energy suppliers.
• For VSEs not eligible for the tariff shield, as well as all SMEs, the shock absorber would replace the electricity bill payment assistance window, but they would still be able to benefit from the assistance window for their gas bills.

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

Evolution of the help desk for paying electricity and gas bills :

Two eligibility criteria would be used:

• The price of energy during the application period has doubled compared with the average price paid in 2021.
• Energy expenditure during the application period represents +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.
• Aid of up to 150 million euros: 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.

Introduction of a government counter-guarantee on bank guarantees required by energy suppliers from their corporate customers.

In this way, companies that default on their energy bills and whose guarantee is called upon could rely on the State as guarantor(Statement by Bruno Le Maire, October 5, 2022).

I hope this article will help you in your efforts. In these times of inflation, all items of expenditure need to be closely monitored. At Inpulsewe enable restaurant chain directors and field managers to centralize all their purchasing data and optimize their food cost. Despite fluctuating raw material prices, it is possible to gain margin points by optimizing inventory management and speeding up decision-making thanks to data and artificial intelligence.

We support over 1,200 restaurants, dark kitchens, bakeries and food kiosks in optimizing their food cost. Find out how they achieved their goals in just a few weeks.