It’s no secret that the delta variant and our latest lockdown measures have put immense pressure on the hospitality industry. For some, it has meant the final nail in the coffin.
Business owners and decision-makers are now forced to look at the business’ finances, trying to find ways to save money and ultimately stay afloat.
One of the biggest running costs for the hospitality sector is electricity. These costs are in the top 3 or 4 overheads for this industry. Luckily, this is also an area where significant cost-saving measures can be taken.
Check your bill
The first step in discovering how you can achieve savings is to get a thorough understanding of what you’re currently paying. According to some statistics, 3%-5% of all energy bills are incorrect.
Unfortunately, one of the most significant costly impacts on businesses is down to basic human error. Late arriving bills, duplicate bills, estimates, incorrect rates, missed prompt payment discounts, or even duplicated payments can end up costing your business a significant amount of money if they go unnoticed.
Understand your usage
Along with what you’re spending each month, you should also take the time to understand what you’re using. Typical areas of high-energy usage for hospitality are refrigeration, kitchen equipment, heating, ventilation and cooling, and lighting.
Ensure you are also receiving regular maintenance on these appliances as incorrect temperature settings, leaky seals, or simply using older models can result in unnecessarily increased costs. Along with cost-saving benefits, upgrading and maintaining appliances can also reduce greenhouse gas emissions.
Some establishments have found cost-saving opportunities by using timers on certain appliances, automatically turning them off when they aren’t in use. However, for many hospitality businesses, timers aren’t always an ideal solution. For equipment that runs 24/7, invest in the most energy-efficient appliances available.
While some appliances might initially seem more cost-efficient, they can actually incur higher costs. Gas appliances might seem cheaper to run. However, they aren’t energy efficient, as gas cooking releases more heat, which requires more ventilation and cooling.
Engage with an energy broker
Unfortunately, there is only so much you can do. As any business owner will know, you can be good at a lot of things, but not everything. So, it always helps to have someone with a wealth of knowledge and experience on your side.
Engaging with an expert energy broker is likely the most cost-effective measure you can take when it comes to your energy costs.
But what does an energy broker do?
A broker will initially look at your energy consumption history over the past 12-24 months and start identifying areas with cost-saving potential. Using their industry knowledge, an energy broker can recommend the best solution for your business or what energy provider would best suit your needs.
As experts in energy brokerage, Saveawatt will analyse your meter type and consumption history to identify any anomalies or savings opportunities in your power bill. In addition, we will use our leveraged buying position to negotiate with power companies to get you the lowest possible rate, highest prompt payment discounts, and the best terms and conditions.
While results vary between businesses and industries, we are typically able to achieve savings of 15% to 25% on the energy portion of your rates. Recently we saved a nationwide hospitality chain $98,000 across a 36-month energy contract.
Checking your energy bill yourself is an important part of the cost-saving process. However, consider the amount of time and resources being poured into reviewing multiple power bills every month. Saveawatt’s BillMinder effectively eliminates time and human error by automating your utility bill management and monthly reconciliation. Robotic workers ingest your power bill and measure it against your meter data and power contract to validate its accuracy using sophisticated technology. BillMinder will also produce monthly carbon and sustainability reporting, as well as energy budgeting and forecasting.
If you are an owner or a decision-maker looking to reduce your energy costs, get in touch with one of our experts.