The Biggest Energy Costs for UK Pubs: What Landlords Should Know

Running a pub is an energy-intensive business. From keeping customers comfortable and serving food to running refrigeration, cellar cooling, lighting and hot water, energy can be a significant overhead.

For pub landlords and operators, understanding where energy is being used is the first step towards reducing unnecessary consumption and controlling business energy costs.

While every pub is different, several areas consistently contribute to energy demand.

What are the biggest energy costs for a pub?

The biggest energy costs for most pubs are likely to come from:

• Heating and hot water
• Commercial refrigeration
• Cellar cooling
• Kitchen equipment
• Lighting
• Ventilation and air conditioning
• Laundry and washing equipment
• Energy used by gaming and entertainment equipment

The balance between these areas will depend on the size of the pub, opening hours, whether food is served, the size of the kitchen and cellar, and the age and efficiency of the equipment.

Heating and hot water

Heating can be one of the largest energy expenses for a pub, particularly during the colder months.

A typical pub may have several areas requiring heating, including the main bar, restaurant or dining areas, function rooms, offices and customer facilities.

Hot water also creates a significant demand, particularly in pubs with busy kitchens and high customer numbers.

The amount of energy used can be affected by:

• Building size and insulation
• Boiler efficiency
• Heating controls
• Opening hours
• Number of customers
• Outside temperature
• Hot water demand

One common source of wasted energy is heating the entire building when only certain areas are occupied.

Reviewing heating schedules and dividing the building into controllable zones can help ensure energy is being used where and when it is actually needed.

Commercial refrigeration

Refrigeration is another major energy user in pubs.

Fridges and freezers may operate continuously, meaning even relatively small inefficiencies can add up over the course of a year.

Pubs can have refrigeration equipment throughout the business, including:

• Bar fridges
• Bottle coolers
• Under-counter refrigeration
• Walk-in refrigerators
• Freezers
• Food preparation refrigeration

Equipment that is poorly maintained or nearing the end of its useful life can consume more electricity than modern, efficient alternatives.

Simple measures such as checking door seals, cleaning condenser coils and ensuring refrigeration equipment isn't exposed to unnecessary heat can help improve efficiency.

Cellar cooling

For pubs serving beer, maintaining the correct cellar temperature is essential.

Cellar cooling equipment can therefore operate for long periods, particularly during warmer weather.

A poorly insulated cellar, inefficient cooling equipment or incorrect temperature settings can result in unnecessary electricity consumption.

It's worth checking that:

• Cellar insulation is adequate
• Cooling equipment is regularly maintained
• Doors and seals are in good condition
• Temperature controls are working correctly
• Condenser units have sufficient ventilation

Because cellar cooling is closely linked to the pub's core operation, efficiency improvements need to maintain appropriate storage conditions.

Commercial kitchen equipment

For pubs serving food, the kitchen can represent a substantial proportion of total energy consumption.

Commercial kitchens can contain several high-energy appliances, including:

• Ovens
• Grills
• Fryers
• Hobs
• Dishwashers
• Extraction systems
• Refrigerators
• Freezers
• Hot holding equipment

Kitchen equipment can consume considerable amounts of energy, particularly when operated for long periods.

Where possible, equipment should be switched on according to demand rather than being left running throughout the day.

Modern, efficient appliances can also reduce energy consumption when older equipment reaches the end of its working life.

Lighting

Lighting is essential in a pub, but it can also contribute significantly to electricity consumption.

Pubs typically need lighting across:

• Bars
• Dining areas
• Kitchens
• Toilets
• Cellars
• Storage areas
• External areas
• Car parks
• Signage

Many pubs also create a particular atmosphere through decorative and feature lighting.

Replacing inefficient lighting with LEDs can reduce electricity consumption while maintaining the desired appearance and ambience.

Lighting controls, timers and occupancy sensors can provide further savings in areas such as stockrooms, toilets and staff-only spaces.

Ventilation and air conditioning

Ventilation and air conditioning can become important energy users, particularly in busy pubs and venues with large kitchens.

Kitchen extraction systems need to remove heat, smoke and cooking fumes. Air conditioning may also be required to maintain comfortable temperatures during warmer periods.

The challenge is finding the right balance between customer comfort, air quality and energy efficiency.

Extraction and ventilation systems should be properly maintained, while controls should be configured so that systems aren't operating unnecessarily when the kitchen or pub isn't in use.

Laundry and washing equipment

Pubs with accommodation, large food operations or significant cleaning requirements may use considerable energy for washing and drying.

Commercial dishwashers, washing machines and tumble dryers can all contribute to electricity and hot-water consumption.

Where possible, operators should consider:

• Running equipment at appropriate capacity
• Avoiding unnecessary cycles
• Maintaining equipment properly
• Using efficient settings
• Reviewing hot-water temperatures

Entertainment and other electrical equipment

Modern pubs can also have a wide range of additional electrical equipment.

This could include:

• Televisions
• Sound systems
• Gaming machines
• Pool tables
• Electronic tills
• Wi-Fi equipment
• Computers
• Security systems
• Digital signage

Individually, these may not represent the largest energy costs, but the combined demand can be significant, particularly when equipment is left switched on outside trading hours.

How much energy does a pub use?

There isn't a single figure that applies to every UK pub.

A community pub with a small bar and limited food operation will have a very different energy profile from a large pub with a commercial kitchen, multiple bars, extensive refrigeration and long opening hours.

Factors affecting energy consumption include:

Size + opening hours + customer numbers + kitchen facilities + refrigeration + heating + equipment efficiency

This is why comparing your pub's energy bill with another business isn't always particularly useful.

A better approach is to understand your own consumption and identify where the largest energy demands are coming from.

How can pubs reduce energy costs?

Reducing energy consumption doesn't necessarily mean making customers uncomfortable or compromising the quality of your service.

Instead, focus on areas where energy may be being wasted.

Improve heating controls

Review heating schedules and temperatures and make sure different areas can be controlled appropriately.

Avoid heating empty areas unnecessarily.

Upgrade lighting

LED lighting can provide a relatively straightforward way to reduce electricity consumption, particularly where older lighting is still being used.

Maintain refrigeration

Clean condenser coils, check door seals and make sure refrigeration units have adequate ventilation.

Review cellar cooling

Make sure cellar cooling systems are maintained and operating at appropriate settings.

Optimise kitchen equipment

Avoid leaving ovens, fryers and other equipment running when they aren't required.

When replacing equipment, consider energy efficiency alongside purchase price.

Monitor consumption

Regularly reviewing electricity and gas consumption can help identify unusual increases and establish where savings opportunities exist.

Don't overlook your business energy contract

Reducing consumption is only one part of controlling your pub's energy costs.

The price you pay for electricity and gas is equally important.

Two pubs with similar energy consumption could have very different energy bills simply because they are paying different rates or have different contract terms.

Pub landlords should therefore review:

• Electricity unit rates
• Gas unit rates
• Standing charges
• Contract end dates
• Contract terms
• Supplier charges
• Energy consumption
• Billing accuracy

If your energy contract is approaching renewal, don't wait until the last minute to start comparing your options.

Starting the procurement process early can give you more time to monitor the market and assess whether a fixed or flexible purchasing strategy is appropriate.

Check your energy bills

Energy bill validation is another area that pub operators shouldn't overlook.

Billing errors, incorrect meter information, unexpected charges or discrepancies between agreed contract rates and invoices can all increase costs.

Regularly checking your bills against your contract and actual consumption can help identify issues and ensure you're paying what you should.

Energy procurement for pubs

For many pub operators, energy procurement can be difficult to manage alongside the day-to-day running of the business.

Understanding wholesale market movements, comparing suppliers and choosing the right contract can take time.

Energy Costs Managed helps UK businesses manage their energy costs through energy procurement, wholesale price monitoring and energy bill validation.

For pub landlords, taking a structured approach means looking at both sides of the equation:

Use less energy where possible + pay the right price for the energy you need.

A simple energy checklist for pub landlords

Review the following areas regularly:

Heating and hot-water controls

Boiler efficiency and maintenance

Refrigeration equipment

Cellar cooling

Kitchen equipment

Lighting

Ventilation and extraction

Air conditioning

Laundry and dishwashing

Equipment left on outside trading hours

Electricity and gas consumption

Energy contract end date

Unit rates and standing charges

Energy bills and additional charges

Final thoughts

Energy is an unavoidable cost for pubs, but that doesn't mean it has to be an unmanaged one.

Heating, refrigeration, cellar cooling, commercial kitchens and lighting can all contribute significantly to a pub's energy consumption. Understanding these costs makes it easier to identify where improvements could deliver the greatest benefit.

But energy efficiency is only part of the picture.

Reviewing your consumption, managing your energy contract and checking your bills can all help reduce the overall cost of running a pub.

If your pub's energy contract is approaching renewal, Energy Costs Managed can help you review your energy procurement strategy and understand your options before committing to a new agreement.