Table of Contents
- 1 How much does a restaurant spend on electricity?
- 2 How do you calculate utility cost for a restaurant?
- 3 How much gas does a commercial kitchen use?
- 4 What is the average overhead for a restaurant?
- 5 How much electricity do foodservice businesses use?
- 6 How much should a restaurant owner spend on food?
How much does a restaurant spend on electricity?
Restaurants in the United States spend on average $2.90 per square foot (ft2) on electricity and $0.85 per ft2 on natural gas annually. This means 3 to 5 percent of their total operating costs are typically spent on energy.
How do you calculate utility cost for a restaurant?
To get an accurate estimate on how much your restaurant will spend on utilities, you’ll need to know the approximate square footage of your space. The average restaurant utilities cost in the U.S. includes $2.90 per square foot per year on electricity, and $0.85 per square foot/year on natural gas.
What are the monthly expenses for a restaurant?
You can count on the following monthly operating costs for your restaurant.
- Rent and utilities (electricity, water, internet, cable, and phone): 5% – 10% of revenue.
- Food cost: 25% – 40% of food sales.
- Labor cost: Roughly 30% of revenue including management salaries of 10%
- Insurance varies by provider and type.
How much energy does a restaurant use per day?
When it comes to the average daily electricity consumption, refrigeration uses around 70 kWh, grills 37 kWh and ovens around 35 kWh….Amount of electricity used by a restaurant.
| an aspect of running a restaurant | percentage of total electricity usage |
|---|---|
| Cooking | 14% |
| Ventilation | 12% |
| Cooling | 11% |
| Lighting | 6% |
How much gas does a commercial kitchen use?
Historically, commercial cooking accounts for 7 to 14% of total gas commercial gas consumption, depending on the exact year analyzed, and averages about 10% of total use.
What is the average overhead for a restaurant?
As a general rule, one-third of a restaurant’s revenue is allocated to cost of goods sold, and another third to labor expenses. The remaining revenue must cover overhead expenses like utility bills and rent. Once all expenses are paid, restaurants are typically left with between only 2 and 6% in net profit.
How much do restaurants spend on electricity and natural gas?
A study showed that Restaurants in the United States spend on average $2.90 per square foot (ft2) on electricity and $0.85 per ft2 on natural gas annually.
How can restaurants save money on utilities?
Make sure to keep consumption to a minimum. Use energy saving appliances when possible and even energy saving light bulbs. If the average spend on utilities at your restaurant is higher than 5% you should careful look at your numbers and try to reduce that rate. What is the Average Restaurant Sales Per Square Foot of Space?
How much electricity do foodservice businesses use?
In fact, foodservice businesses use an average of 38 kilowatt-hours (kWh ) of electricity and 111 cubic feet of natural gas per square foot, which is about 2.5 times [1] more energy used in other types of commercial buildings.
How much should a restaurant owner spend on food?
Every restaurant owner should keep a close watch on food purchase expenses. As a general rule, your food costs should not exceed 28% to 32% of total food sales. If you are spending more than this percentage, you need to reconsider your purchase practices.