What Small Businesses Consume the Most Energy and How Can They Cut Costs?

What types of small businesses use the most energy? 

Small restaurants and cafés

With equipment such as industrial ovens, grills, fryers, fridges, freezers and food preparation tools running throughout the day, it is no surprise that restaurants and cafés are among the highest energy consuming small businesses.

Electricity demand remains constant from early morning preparation through to evening service.

Refrigeration alone accounts for a significant portion of energy use, as food must be stored safely at all times. Cooking equipment requires substantial power, particularly during peak meal periods. Add to this the need for effective ventilation systems, extraction fans and heating for customer comfort, and the result is a business model heavily reliant on energy.

Larger chains may be able to absorb rising costs more easily due to greater buying power and cash flow. However, independent cafés and family-owned restaurants often operate on tight margins.

Recent energy price increases have placed immense pressure on the hospitality sector, with some businesses reducing opening hours or closing altogether. Managing energy efficiently is no longer optional but essential for survival.

Hair salons

The hair and beauty industry is another energy-intensive sector.

Salons rely heavily on electrical equipment such as hair dryers, straighteners, curling irons and colour processing tools. These are used repeatedly throughout the day, often with little downtime. Hot water demand is also high. From washing clients’ hair to maintaining hygiene standards and laundering towels on site, salons require a continuous and reliable supply of heated water.

This combination of electricity and gas usage can significantly increase monthly bills.

Many salons operate long opening hours, including evenings and weekends. Lighting, heating and background music systems all add to energy consumption. For small, independent salon owners, keeping these costs under control is vital to maintaining profitability.

Boutique hotels and B&Bs

Hotels and B&Bs operate around the clock, making them one of the most energy-demanding small business types. Guests expect comfort, convenience and reliability, which means heating, lighting and hot water must always be available.

Guest rooms require individual lighting, televisions, kettles and sometimes mini fridges. Communal areas, from reception spaces to dining rooms and even corridors, must be well-lit and temperature-controlled. Laundry services, whether on-site or partially outsourced, add further energy demand.

Unlike other small businesses that power down overnight, accommodation providers must maintain services at all hours. Even when occupancy is low, baseline energy consumption remains high. Careful management of heating systems, lighting and appliances is crucial for keeping costs sustainable.

How can small businesses cut their energy use? 

Small restaurants and cafés

Restaurants and cafés can take several practical steps to reduce consumption.

• Regular cleaning and servicing of cooking and preparation equipment ensures appliances operate efficiently.
• Poorly maintained ovens and refrigeration units work harder and consume more energy.
• Switch equipment off when it is not in use. For example, once morning baking is complete, ovens should be powered down.
• Maintain a consistent thermostat setting. Even reducing the temperature by one degree can result in noticeable savings over time.
• Position hot equipment away from refrigeration units. Heat emitted from ovens forces fridges to work harder to stay cool.
• Consider upgrading to energy-efficient commercial appliances when replacing older units. Modern equipment is designed to meet performance standards using less power.

Hair salons

Salon owners can implement several straightforward measures.

• Install low-flow nozzles on sinks and taps to reduce hot water consumption without compromising service quality.
• Avoid relying on portable space heaters. These are known to contribute heavily to energy use in service industries.
• If heating is insufficient, an energy audit can identify insulation or system inefficiencies.
• Use low power settings on hair dryers where appropriate and switch tools off between appointments.
• Avoid overloading sockets and only plug in equipment required for each client session. This not only reduces consumption but also improves safety.
• Switch to LED lighting to reduce electricity use while maintaining bright, client friendly spaces.

Boutique hotels and B&Bs

Accommodation providers can benefit from simple yet effective changes.

• Maximise natural light in communal areas by removing heavy curtains and using daylight wherever possible.
• Install timers on HVAC systems and encourage guests to maintain moderate temperature settings.
• Upgrade to energy-efficient appliances in guest rooms.
• Replace outdated bulbs with LED alternatives and install motion sensor lighting in corridors and bathrooms to prevent unnecessary usage.
• Encourage towel reuse policies to reduce laundry loads and associated energy costs.

What common energy-saving practices apply to all small businesses?

Regardless of the sector, universal strategies can significantly reduce energy consumption. Conducting a professional energy audit is an excellent starting point. This identifies areas of waste, highlights inefficient equipment and provides tailored recommendations.

Mentioned for each business, switching to LED lighting is one of the quickest and most cost-effective changes any business can make. LEDs use considerably less electricity and have a longer lifespan than traditional bulbs.

Installing smart meters allows businesses to monitor usage in real time, making it easier to identify peak consumption periods and adjust operations accordingly.

Improving insulation in walls, roofs and around windows prevents heat loss, reducing the demand on heating systems. Simple actions such as sealing drafts and maintaining door closers can also make a noticeable difference.

Encouraging staff awareness is equally important. Turning off lights, shutting down computers at the end of the day and avoiding unnecessary heating adjustments all contribute to long term savings.

Why is reducing energy consumption important for small businesses?

Reducing energy consumption directly impacts profitability. Lower bills free up cash flow that can be reinvested into staffing, equipment upgrades or marketing. It also protects businesses from market volatility. Energy prices can fluctuate significantly, and reducing reliance on high consumption levels provides greater financial stability.

Environmental responsibility is another key factor. Customers increasingly value businesses that demonstrate sustainable practices. Cutting energy use reduces carbon emissions and supports broader climate goals, strengthening brand reputation and customer loyalty.

Why should you choose D-ENERGi?

For more support and guidance to keep your small business energy costs down, consider contacting your business energy supplier to discuss your concerns. At D-ENERGi, our friendly support team is always happy to help business energy customers. We can review bills, explore payment options and provide advice tailored to your usage patterns.

If you would like greater control over your energy consumption, we also support small businesses through the smart meter rollout scheme, helping you monitor and manage energy more effectively. Contact D-ENERGi today to find out more about your energy bills or to discuss switching your business energy supply.

Conclusion

Some small businesses naturally consume more energy due to the nature of their operations. However, with targeted strategies, regular maintenance and smarter usage habits, costs can be significantly reduced. By taking proactive steps, small businesses can protect profits while building a more sustainable and resilient future.

FAQs 

What kinds of small businesses use the most energy?

Restaurants, cafés, hair salons, boutique hotels and B&Bs typically use the most energy due to constant equipment use, heating, lighting and hot water demand.

How can small businesses track their energy usage?

Installing smart meters, reviewing monthly bills and conducting professional energy audits help businesses monitor patterns and identify areas for improvement.

What are simple ways for small businesses to cut energy costs?

Switching to LED lighting, servicing equipment regularly, maintaining consistent thermostat settings and turning appliances off when not in use are effective starting points.

Are there sector-specific energy saving tips?

Yes. For example, restaurants should separate hot and cold appliances, salons can reduce hot water usage, and hotels can use motion sensor lighting in communal areas. For more insights, visit the D-ENERGi blog today,

Why is reducing energy consumption important for small businesses?

Lower energy use reduces operating costs, improves financial stability and enhances environmental responsibility, helping businesses remain competitive and sustainable.