Restaurant Business Quarterly | Q1 2025

SPECIAL REPORT

I f you were tasked with constructing a building that would have a low impact on the environment, you would proba- bly not want to start with a restaurant. Restaurants burn through more energy per square foot than any other type of commercial real estate, according to data from Energy Star. The average dining establishment uses 5 to 7 times more energy per square foot than other commercial buildings. At high-volume fast-food places, that multiple jumps to 10. That’s because restaurants have a lot of energy needs relative to their size. Refrigerators and freezers are electricity hogs. Restaurants have plentiful indoor and outdoor lighting, as well as workhorse HVAC systems keeping hot kitch- ens cool. It doesn’t help that many operations, especially fast-food places, have long hours, with some open around the clock. To put this into further perspective: A fast-food restaurant like McDonald’s or Burger King will use about $20 of en- ergy per square foot, said Al Subbloie, founder and CEO of Budderfly, a company that works with restaurants to lower their energy consumption. A well-run office building will use $2. “Per square foot, how many things plug into or are connected to a circuit that are using energy [in a restaurant]?” Subbloie said. “The density of energy use is ridiculous.” All of that energy use has a real impact on the planet. Electricity generation is the second largest producer of carbon dioxide pollution, a key contributor to climate change. Not only that, but restaurants’ energy consumption is also a drag on their bottom lines. Since 2020, the average price per kilowatt hour has increased nearly 30%, according to data from the U.S. Bureau of Labor Statistics. That said, there are many ways restaurants can reduce their energy use, and virtually all large restaurant chains are making broad commitments to do that. But it’s not something that always comes easily for rank-and-file operators. “I’ve always had a desire to make our stores more sustainability focused, but honestly, I didn’t really know how,” said Spencer Hart, the operator of five Sonic Drive-Ins and two Jersey Mike’s on Long Island. “We know how to run restaurants, but we didn’t really know how to do that.” HOW RESTAURANTS ARE WORKING TO KICK THEIR ENERGY HABIT RESTAURANTS USE MORE ENERGY PER SQUARE FOOT THAN ANY OTHER COMMERCIAL BUSINESS. REVERSING THAT TREND WILL BE CHALLENGING, BUT THERE ARE SIGNS OF PROGRESS. BY JOE GUSZKOWSKI

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RESTAURANT BUSINESS JANUARY 2025

PHOTO BY MIDJOURNEY

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