Operations

Swap out the lights to keep them on

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November 9, 2020 by Nancy Shenker

Multi-location restaurants have had to make significant changes to their operations this year to survive the COVID-19 pandemic. Safety precautions, staffing challenges, reduced seating, take-out and delivery, touchless ordering and service enhancement — the list of current concerns seems endless.

Although most restaurants look primarily at the meat and potatoes of their business — food, staffing and technology — as areas for cost-cutting, eergy usage is a massive spending area that often goes unnoticed. A recent study from FES, based on E SOURCE data, shows that restaurants spend approximately $3 per square foot on energy every year. This chart from ENERGY STAR breaks that down.

When was the last time you did an energy audit?

Although it sounds about as exciting as a health department inspection, a simple energy audit is the best way to uncover dramatic cost savings opportunities. Fast casual restaurants built before 1990 are often filled with equipment and lighting systems that drain power and cash. In fact, 40% of commercial buildings have not yet made the switch to LED lighting.

An energy audit is a simple way to review your monthly expenses for electricity, HVAC and technology usage. The time you invest in doing it will pay back almost instantly when you find ways to reduce costs.

Also, tax and local incentives may be available for energy-saving improvements.

Lighting upgrades are low-hanging fruit

"Who has time or money for a retrofit?" you might ask yourself.

But now is a great time to rethink your signage, your drive-through lighting, and your in-house ambiance.

Lighting-as-a-Service has emerged as a "subscription model" for restaurant lighting. Companies like Future Energy Solutions, for example, will cover the entire upfront cost of planning and installation. The restaurant will then pay a set amount every month, which means that restaurants can better manage cash flow. They have worked with single-location restaurants as well as multi-location chains.

Says Daniel Gold, FES Founding Partner," We expect more options like this to appear in the restaurant and retail world. Business owners and managers are cash-strapped, but companies like ours give them a way to make major capital improvements, save money over time, and become more sustainable operations."

What innovation is next for energy saving in restaurants?

Technology is now being applied throughout restaurant operations, facilitating ordering and delivery, scheduling, touchless dining, and food preparation.

Smart sensors throughout our industry will soon be controlling equipment, lighting controls, security systems, music, and other vital elements of the dining experience. The (artificial intelligence natural location is within lighting systems because the wiring and placement already exist.

Restaurant operators once had to choose between aesthetics, sustainability, and cost-savings when looking at energy usage. That is no longer the case.

As you consider the "menu" of options for efficiency and diner experience for 2021 and beyond, don't ignore that $3 per square foot energy cost for your restaurant.

When multiplied out over total square footage and locations, that's undoubtedly bright news for our industry!