Find ways to lower utility bills and boost efficiency at your pizzeria
Turn out the lights, close the refrigerator door, and don’t leave the oven on all day. Some age-old methods for saving energy are still valid, and today there are many more ways to reduce energy consumption. From switching to LED lightbulbs to overhauling the kitchen, pizzeria owners can implement various tactics to mitigate rising energy costs.
According to the August 2025 Consumer Price Index calculated by the U.S. Bureau of Labor Statistics, electricity prices increased 6.2% over the previous 12 months, and natural gas prices increased 13.8% during the same period. For comparison, food prices rose 2.9% over the previous 12 months.
While it’s difficult for any business owner to predict future utility costs, increases seem likely. The U.S. Energy Information Association forecast that natural gas prices will rise, reflecting relatively flat natural gas production. The EIA – part of the U.S. Department of Energy – also forecast that electricity demand will grow, driven by data centers and industrial customers.
Energy-efficient Equipment
Even incremental actions can conserve energy. At Pizzeria Rustica in Colorado Springs, Colorado, owner Jay Gust says he assumes energy prices will go up, so it helps to take small actions throughout the restaurant. “Don’t leave the lights on in the bathroom,” he says. “We put in a motion sensor, so when the guest leaves the bathroom, 30 seconds later the light turns off.” The technology also is useful in the dry-storage room.
Pizzeria Rustica also has an upstairs event/overflow space, and employees are trained to turn off those lights when the area isn’t being used. “Culture is a clutch piece,” Gust says. “If you don’t have a strong culture, you are going to hemorrhage money.”
On a larger scale, new equipment can help reduce energy consumption and costs. According to Energy Star, a program administered by the U.S. Department of Energy, restaurants use five to seven times more energy per square foot than other commercial buildings. Refrigeration uses the most energy, followed by lighting, then cooling.
The Energy Star program certifies commercial foodservice equipment such as refrigerators with high-efficiency compressors and ovens that meet minimum cooking energy-efficiency rates – the amount of heat absorbed by food compared to the total energy used by the oven during the cooking process. Energy Star notes that energy-efficient products can offer savings of 10% to 70% over standard models.
In addition to providing an online rebate finder and savings calculator, Energy Star offers tips such as:
- Implementing a startup and shutdown schedule to reduce idle time for equipment.
- Maintaining and repairing equipment as needed.
- Installing a demand-based exhaust system that varies the fan according to ventilation needs.
Up in the Air
The heating, ventilation and air conditioning (HVAC) system is an important area to upgrade. “HVAC can account for up to one-third of a restaurant’s total energy costs,” says Mike Naughton, CEO of Integrity Energy, a Cleveland, Ohio-based commercial energy broker that helps businesses find affordable plans in deregulated markets. “From pizza ovens and commercial kitchen appliances to keeping the dining room comfortable, most restaurant HVAC systems are working overtime and raising your energy costs.”
One solution is to invest in a smart thermostat that offers zoning features or separate temperature controls to manage a hot kitchen and cool the dining room separately. Temperatures change throughout the day and season, so Naughton recommends setting a temperature schedule for each season, based on typical meal rushes. To avoid accidental overrides or team debates about the right temperature, add a locking feature or PIN to these set temperatures. Schedule temperature setbacks – or higher or lower temperatures – during prep periods, after closing and when the restaurant is unoccupied.
Read the Bill
When reading your energy bill, pay attention to peak demand charges, a detail business owners often overlook. “Most utilities charge commercial customers with a demand charge based on your highest instance of usage during a billing period,” Naughton says. “Depending on your utility and usage patterns, demand charges can represent 30% to 70% of your bill.”
These demand charges can be tricky. “They don’t measure your total energy use, they measure your worst energy moment,” Naughton says. “Even a short usage spike during a lunch or dinner rush can increase your costs for the entire billing cycle.”
The solution, Naughton says, is to focus on when and how your restaurant uses energy and smooth out your demand peaks. Identify your local utility company’s seasonal peak demand periods and shift prep work and cleaning tasks to off-peak hours. Don’t create a demand spike by turning on every appliance at the same time; instead, stagger the startup times for ovens, dishwashers and other systems.
“You can also keep costs low year-round by completing energy-efficiency upgrades during the spring and fall,” Naughton says. “Completing these upgrades during mild weather reduces service interruptions and ensures your restaurant is ready for the next high-demand season.”
Check with Your Utility
Some utilities offer programs that help businesses assess their energy needs, implement changes in HVAC and equipment and earn rebates to help offset the costs of the upgrades. In New Jersey, Atlantic City Electric offers Direct Install, a comprehensive program that helps commercial customers make energy-efficient upgrades.
The process starts with a free onsite energy assessment, a comprehensive report of recommendations and estimated costs for energy-saving upgrades. “Direct install can help guide you on what can achieve the most savings,” says Nick Skari, senior energy efficiency program manager at Atlantic City Electric. “We are taking a look at all the opportunities, refrigeration, lighting, HVAC, lighting controls, smart thermostats.” Atlantic City Electric offers incentives of up to 80% for the upgrades to reduce upfront costs.
Restaurants are a growing sector, Skari says, and Atlantic City Electric worked with a three-location pizzeria to update its lighting and HVAC. The project cost $75,000 – but with the incentives, the owner paid approximately $20,000. The project resulted in $10,000 energy savings per year, so the pizzeria earned back its expenditure after two years. “Anything we can do to help a pizzeria manage their costs can help them invest in their business,” Skari says.
“Most utilities will have some form of energy efficiency assistance,” Skari says. “We are a regulated utility, so part of our mandate is to offer programs.” Check with your local utility for similar programs.
Nora Caley is a freelance writer who covers small business, finance and lifestyle topics.
