Catch up on the Energy Focus series:
- Time for action on energy
- How wet-led pubs are battling the energy crisis
- How food-led pubs are fighting rising energy costs
- Your pub's roadmap to sustainable success
Estrella Damm Top 50 Gastropub the Dog at Wingham in Kent has eight bedrooms alongside its award-winning food offer.
Operator Marc Bridgen outlined the rocketing costs that have impacted his business over recent months.
He said: “I’ve been talking about this since May last year because it started to hit the news [then]. By chance, we were having to renew our energy contracts then (our end date was Oct last year), so I started to look at options.
“It’s just a bloody nightmare. Our numbers are going from £36,000 per annum to £80,000 per annum under the cap. When the cap ends in April, we are projecting £120,000 per annum.
“Even the best places in the country are struggling, there is no margin in what we do. That £85,000 increase is more profit than we‘ve ever made in a year.”
On the accommodation offer, Bridgen has made small alterations to reduce energy usage while ensuring guests still get the experience they are looking for.
"It’s taking a little bit of polish off what we do."
He added: “We are in hospitality and the Dog is all about the warm welcome then following on from that, incredible drinks, award-winning food and amazing rooms.
“That welcome isn’t quite as warm as we would like because we are trying to do the bare minimum on energy consumption.
“[We] used to have thermostat at 21°/22° but it’s now at 19°/20°. [We have] the log burner and open fire on as the building is colder so we want to light the fire but the cost of wood has gone up.
“[Because] the cost of energy has gone through the roof, we are trying to light the fires last minute, just before service.
“We are having to be careful and conservative in energy use and it rolls on to the rooms. We have now turned off the TV, kettle, hair dryer at the plug because it will save a bit of energy and money over the year but that’s not very hospitable for our guests as they have to turn things back on at the plug.
“It’s taking a little bit of polish off what we do. From tiny things like that I hope aren’t affecting the guests. Most of them get it because everyone is feeling it at home as well.”
Maximising energy efficiencies for accommodation-led pubs
Pubs that also provide accommodation bring both additional costs and energy usage. Charlie Fryday, Heineken UK on-trade category and commercial strategy director, discusses how to tackle and reduce this.
“Regular maintenance of all lighting and appliances such as minibars or fridges in rooms can help reduce energy consumption.
“While leaving music or TVs playing in guests’ rooms to create an atmosphere upon arrival can be a nice touch, it will increase energy usage and costs. If possible, consider other ways to enhance guests’ experience, for example a discount in the bar between certain hours or local products included on the tea tray in their room.
“When replacing any in-room appliances, select energy efficient and eco-friendly options. Rather than offering an iron and ironing board in every room, purchase a small number of good quality, energy-efficient irons and keep them behind the front desk for guests to request. This should save on cost and unnecessary usage.”
“Use polite in room signage to prompt guests to make sustainable choices such as turning off lights and appliances when not in use.
“Ensure any room service or cleaning personnel are also aware of this when doing the rounds. Providing advice regarding reusage of towels will reduce excess laundry.
“When it comes to air conditioning in the rooms, guidance on optimal temperatures for those with individual controls will help avoid excess usage by guests, or some venues have limited heating and cooling settings.
“Of course, it’s a balance, as guests are there to have a relaxing experience so any guidance or signage should be subtle. While these are small and arguably simple changes, the savings can add up across multiple guest rooms and support the initiatives implemented elsewhere.”
Listen to more expert advice from the SmartDispense® Energy Well Spent Summit and the SmartDispense® Debate Series.
From changing the temperature manually, to putting extra heat into the rooms in other ways, the operator highlighted how he is trying to conserve warmth.
“We have put fan heaters in each room so if people are feeling it, they can add a bit of heat to that room rather than the whole building. We always bring out cosy blankets for winter so that is of course available for guests,” Bridgen said.
Price changes
While there hasn’t been a price rise for rooms at the Dog, this is something that could happen once the energy discount is reduced in April.
He added: “We have not [increased room prices] as of yet. When the cap ends I am thinking about potential utility surcharges on diners and residents. It will be discretionary and I am looking at if we can make it a donation basis.
“If we want to be profitable, we have got to raise an additional £80,000 per annum, [equating to] about a 5% increase in revenue which in difficult times anyway, most of the industry will be happy if it can stand still this year.”
Southern England-based Upham Inns has a plethora of boutique country bedrooms across its estate.
The multi-site operator has reported trading overall has been positive following two years developing the business, resulting in tracking above market growth rates.
However, the business is not immune to the ongoing pressures when it comes to energy prices.
Director Ian Dunstall said: “Since the autumn, we have seen real growth over 2021, when we benefited from the post-Covid staycation surge. But while sales demand remains positive, like everyone we are experiencing heavy cost headwinds in many areas.
“We are actively managing our energy consumption and are targeting to reduce consumption rates by up to 20% to offset the high energy cost increases.”
Like the Dog, Upham has made changes to its accommodation in a bid to curb usage and costs.
Dunstall added: “Specifically in our hotel offer, our ongoing initiatives include replacing lightbulbs with more efficient LED bulbs, installing lighting timers and reducing heating in corridors and ensuring unoccupied bedrooms have power switched off and heating levels reduced.
“[We are also] reducing all radiator thermostats to ‘3’ and fitting water flow efficiency shower heads to reduce water use and ensuring all toilets have both quick and long flush option.
“[We are] reducing laundry costs and associated energy bill by managing the number and change frequency of towels around number of guests in house and stayovers.”
The group is also taking a similar attitude to energy consumption management in its pubs, with a specific focus on the kitchens.
"This first stage has been focused on the short-term impact we can have on energy consumption."
“We are reviewing the equipment usage and practices – especially trying to manage behaviour to ensure the team only have kit operational during required service hours and are turned off when not required (from heat lamps to gas hobs),” the director said.
“This has also extended into menu review and a study of equipment utilisation – for example in a couple of businesses we calculated that it was not cost effective to run the pizza oven as a supplementary menu section given the relative low take up.
“We also reviewed how we could best use equipment – for example using the rationale oven for multiple items during breakfast so we could completely eliminate the need to fire up other pieces of kit.
“Setting up the reporting of energy consumption has been key, so that there is better visibility of energy usage by both the pub managers and support team to help us monitor and impact on energy costs.
“This first stage has been focused on the short-term impact we can have on energy consumption.”
Company strategy
Top tips on reducing energy in your accommodation offer:
- Lower temperature by a degree
- Offer extra blankets to guests
- Replace lighting with energy efficient alternatives
- Review equipment usage and practices
- Install lighting timers
Fellow multiple business Fuller’s has increased its focus on energy reduction as part of its overall environmental, social and governance strategy – Life is too good to waste.
Sustainability director Oliver Rosevear said: “It has been a focus for some years, but we’ve really ramped up how we communicate the programme and help our teams understand how they can contribute to energy reduction.
“We continue to work with our energy consultants to secure the best prices possible but with such a volatile market this continues to be challenging. The fact is, reducing overall consumption the one thing that’s within our control and reductions we achieve are not only great for the business but also better for the planet.”
Similarly to Upham, Fuller’s has changed equipment within its room offer to help reduce usage.
“Over the years we have shifted toward LED lights across our estate. More recently we’ve started to introduce key card power switches which switch off lighting and non-essential equipment in the room when the guest leaves,” Rosevear added.
“We continue to ensure that door and window seals are maintained to avoid heat loss. We’ve also improved heating controls and recently rolled out a product called Endotherm which help to improve how efficiently our radiators heat the room.
“There has clearly been an impact on margin. However, it’s also reminded us of the need to focus on the cost of operating the rooms and allowed us to identify smart ways of reducing energy used in this area of our sites.”
"Quite often the smallest changes can make the biggest difference."
The sustainability director highlighted some key tips on how other operators can reduce energy consumption, not only to help keep costs low but also to boost green credentials.
He said: “Make sure your housekeeping team understand how they can play their part in saving energy by switching off lights and small power appliances when rooms are vacant.
“Also make sure they check that radiators valves and air conditioning are turned back to the right position when guests leave.
“Make sure you maintain door and window seals so you’re not heating the outside and consider how you are heating your property and whether this could be better controlled – for instance, upgrading your boiler may pay back quicker than normal with the continued high prices for energy.
“Quite often the smallest changes can make the biggest difference. While the energy crisis has been a real challenge for our industry, there’s never been a better time to focus on reduction ensuring we better manage costs as well as reducing carbon and not contributing to climate change. This not only makes our business more sustainable but we are also doing the right thing for the planet.
For the future, Upham has taken energy consumption into consideration when investing into the business.
Dunstall said: “Looking ahead our considerations are on more energy efficient equipment and layouts that we can implement as and when we plan future capital expenditure.”
For Fuller’s, the company’s future holds a continuation of its energy reduction plans alongside further education with employees.
Rosevear said: “We will continue to focus on continuous improvement in reducing energy. Our key focus is on encouraging our teams to be more aware of what they can do to save energy while also installing new technology to better control how energy is used in our cellars and kitchens.
“We have also had a major focus on heating and hot water over the winter to try and minimise the amount of gas we use.
“Keeping our energy usage down is now very much part of business as usual.”