Cutting Cost and Carbon in Hospitality: A Path to Sustainable Profitability
In this Insight, Billy Friar, Energy Consultant at Commercial, explores how hospitality businesses can turn energy efficiency into a strategic advantage. From slashing operational costs to meeting sustainability goals, this article highlights the real-world impact of smart energy solutions, and how they can deliver fast, measurable returns without compromising service.
-4 minute read-
In a world where consumers are increasingly eco-conscious and energy prices remain unpredictable; the hospitality sector faces a critical dual challenge: cutting operational costs and reducing carbon emissions.
The good news? These goals no longer compete. With the right technologies and strategic approach, hospitality venues can reduce energy consumption, shrink their environmental impact, and improve margins, without compromising the guest experience.
Why Now? The Hospitality Sector at a Crossroads
Since 2020, the industry has faced rising costs, changing consumer expectations, and mounting pressure to decarbonise. Today, energy is one of the largest, and fastest growing, operational costs. It typically represents 8 – 10% of total turnover in pubs and bars and up to 12% in hotel operations, with forecasts showing this could climb to as much as 18% in five years.
Long operating hours, extensive refrigeration, climate control, and kitchen operations make the sector especially energy intensive. Cutting unnecessary consumption is no longer just an ethical goal. It’s a business imperative.
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With smart implementation, venues can expect:
- Up to 40% savings from refrigeration upgrades
- 30% reduction in HVAC energy use with smart climate controls
- Typical ROI in 12–24 months, depending on site efficiency and scale.
Efficiency that pays for itself
Modern technologies designed specifically for hospitality, often referred to as Kitchen, Bar, and Restaurant (KBR) solutions, are helping businesses reduce consumption and costs simultaneously.
These innovations target high-energy areas such as refrigeration, HVAC systems, and back-of-house equipment.
The savings can be reinvested into what matters most: team development, marketing, or improved customer experience. In a low-margin sector, reducing overheads directly enhances profitability, without the need to raise prices.
Smarter systems, stronger outcomes
Energy consumption in hospitality is not only high, it’s inconsistent. Seasonal fluctuations, occupancy variations, and differing venue layouts make it difficult to identify clear patterns.
That’s why sector-specific solutions matter. Energy-saving tools like intelligent fridge controllers, cellar cooling optimisers, and smart timers are built to adapt to real-world hospitality demands. These systems deliver impact without disruption, streamlining energy use while keeping quality of service intact.
Click below to find out more about possible solutions for your business
Walk-in Fridge Freezer Manager
Optimise temperature control and compressor cycles to reduce consumption efficiently.
Bottle Fridge Manager
Use IR movement sensors to automatically turn off fridges after hours or periods of no use.
Remote Optimiser
Link remote cooler operation to beer flow demand to reduce wasted energy.
Cellar Manager
Regulate the cellar cooler based on beer keg temperatures.
Smart Post-mix Timer
Automatically turn off post-mix cooler overnight to reduce wasted heat production.
Tailoring the message to the decision-maker
A key insight from successful energy initiatives is the importance of stakeholder alignment. Different roles have different priorities:
- Finance teams are focused on ROI and operational savings
- Operations leads care about continuity, performance, and ease of use
- Sustainability managers are working toward Net-Zero and compliance targets.
By shaping the conversation around these perspectives, hospitality businesses can build internal buy-in and accelerate adoption.
A more resilient future for hospitality
Reducing carbon isn’t just about compliance. It’s about resilience. Businesses that act now will be better placed to handle future energy volatility, investor scrutiny, and regulatory changes.
Energy efficiency can be a competitive advantage. From smart lighting to optimised refrigeration, every kilowatt saved is a cost avoided, and a step toward a stronger, more sustainable operation.
Where Commercial fits in
Commercial works with hospitality venues across the UK to implement practical, low-carbon energy solutions that drive efficiency and impact. Our tailored approach ensures recommendations are both technically sound and commercially viable, helping businesses cut costs without cutting corners.
From cellar managers to walk-in freezer controllers, our KBR solutions are already helping hotels, restaurants, and pubs make sustainability profitable.
Cutting carbon isn’t a cost – it’s a saving
The pathway to sustainable profitability is clear: reduce waste, improve efficiency, and invest in systems that pay back quickly. In a sector where margins are tight and guest expectations are high, smarter energy management isn’t optional. It’s essential.
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