Energy Waste in the Foodservice Industry

$60 billion is wasted on energy in the US every year1. This waste is created by a number of industries but restaurants are among the worst energy efficiency offenders3 using “2.5 more energy per square foot than any other type of commercial building”2. Unlike commercial industries, two-thirds of restaurant energy use is due to kitchen activities. A lot of this waste can be avoided simply by shutting off equipment when they are no longer in use and understanding equipment health status.

Freezer and Cooler doors use a lot of energy when kept propped open whether it be for restocking, a delivery, or unintentional. Changes in temperature and excessive fidgeting with the thermostat can cost you 4-5% more with each degree in both heating and cooling.

Even the slightest of changes can really impact the energy used and the cost that comes with it. There is a lot of energy needed in order to run a food service business, resulting in a high price tag.

It is said that an estimated $2,200 to $3,600 can be saved on energy each year with the implementation of energy management systems1. These systems can both save money as well as increase operational efficiency and sustainability practices for your business. IoT digitizes manual processes. These systems use sensors to collect and analyze energy data. This data can then be used to make business decisions that will increase energy efficiency.4

Data that was once inaccessible can now be accessed from any smart devices. Business owners are now able to understand their consumption completely. Access to this data allows owners and operators to identify trends or deviations in equipment performance. Understanding energy usage allows you to benchmark your locations and optimize your consumption.

Without the use of these systems, it is difficult or even impossible to know of or predict equipment breakdown or failure. Being connected to all of your locations and equipment allows you to prevent mishaps like these from happening.

By reducing your energy consumption, you are also reducing your carbon footprint which is the main goal when trying to promote sustainable practices throughout your business. Using IoT energy management situations is a win-win situation for businesses. A reduction in energy consumption leads to saving money as well as upholding corporate social responsibility.4

With the ever-growing trend of sustainability, it seems that the use of IoT will be growing rapidly to increase sustainability, efficiency, and profitability.



  1. “7 Energy Saving Tips for Restaurants.” Direct Energy Business, 28 Aug. 2015,
  2. “Building Energy Efficiency: Restaurants Waste Energy In Different Ways.” Restaurants Waste Energy In Different Ways | Just Venting,
  3. Hardesty, Linda. “Restaurants Waste Energy Differently Than Other Businesses, Says E Source.” Environment + Energy Leader, 9 Nov. 2012,
  4. Jangi, Madhukar. “How IoT Is Taking Energy Management to the Next Level.” IOT NEWS, 16 Sept. 2019,