Running a cafe is one of the most rewarding — and most demanding — things you can do in hospitality. The early starts, the constant stream of customers, the pressure to keep quality high and costs low. Every cafe owner we speak to is working incredibly hard. But almost all of them are making at least one energy mistake that's costing them real money.
A typical UK cafe spends between £5,000 and £12,000 per year on energy, using 15,000–35,000 kWh of electricity. That might sound modest compared to a restaurant or pub, but for a cafe operating on tight margins, energy can easily account for 10–15% of total revenue. And when you're selling coffees at £3–£4 a time, every pound saved on overheads goes a long way.
Here are the five energy mistakes we see most often — and exactly what to do instead.
Mistake 1: Leaving Equipment Running Overnight
This is the single most common energy waste we see in cafes. You've had a long day. You're tired. You lock up and head home. Meanwhile, your espresso machine boiler is still heating water. Your display cabinet lights are still on. Your oven is still in standby mode, gently consuming electricity through the night.
A commercial espresso machine left running overnight uses approximately 3–5 kWh of electricity per night. That doesn't sound like much until you multiply it by 365 nights a year: 1,095–1,825 kWh, costing £330–£550. Add in display cabinet lighting, oven standby, and other equipment, and you could easily be wasting £500–£900 per year on energy your empty cafe doesn't need.
What to Do Instead
Create a closing-down checklist for your staff (or yourself). Every night, switch off:
- Espresso machine boilers — modern machines heat up in 15–25 minutes, so turning off 30 minutes before close loses you nothing.
- Display cabinet and counter lighting (the fridges themselves can stay on, but the lights don't need to be).
- Ovens and toasters — full shutdown, not standby.
- Customer-area heating or air conditioning (use a timer or smart thermostat).
Consider installing timer plugs on equipment that doesn't need to run outside trading hours. A £15 timer plug that saves you £300 a year is one of the best investments in your cafe.
Mistake 2: Being on the Wrong Tariff Type
Not all energy tariffs are the same, and the right one for a cafe depends entirely on how you operate. We regularly speak to cafe owners who are on tariffs that don't match their usage pattern at all — and they're paying more as a result.
The two most common tariff types for small businesses are:
- Fixed-rate tariffs: You pay the same unit rate (p/kWh) regardless of when you use electricity. Simple and predictable.
- Time-of-use tariffs: Different rates for different times of day. Typically cheaper overnight and in the early morning, more expensive during peak daytime hours.
For most standard cafes open 7am–5pm, a fixed-rate tariff is usually the best bet. Your usage is concentrated in daytime peak hours, so a time-of-use tariff could actually cost you more.
However, if you're a bakery-cafe doing early morning baking from 4am, a time-of-use tariff could save you significantly on those early-hours oven runs. The key is matching your tariff to your actual operating pattern.
What to Do Instead
Check what type of tariff you're on. If you're not sure, your bill should tell you. Then consider whether it matches how you actually use energy. If it doesn't — or if you're not sure — talk to us. We can analyse your usage pattern and recommend the tariff structure that genuinely costs you the least.
Not sure if you're on the right tariff?
Send us your latest bill and we'll tell you whether you're on the best deal — or if you could be saving money with a different tariff type.
Mistake 3: Ignoring Standing Charges
When cafe owners compare energy deals, they almost always focus on the unit rate — the pence per kWh figure. That makes sense; it's the biggest component of your bill. But many overlook the standing charge: the daily fixed fee you pay just for being connected to the grid, regardless of how much energy you use.
Standing charges for business energy typically range from 25p to 90p per day. That might not sound like much, but the difference between a 25p/day and a 90p/day standing charge is £237 per year. For a smaller cafe where every pound counts, that's meaningful.
What makes this particularly frustrating is that some suppliers offer low unit rates but high standing charges, making their deal look better on a headline basis while actually costing you more overall. It's a classic bait-and-switch tactic.
What to Do Instead
Always compare the total annual cost, not just the unit rate. Multiply your annual kWh consumption by the unit rate, then add the standing charge multiplied by 365. That gives you the true cost of each deal. Any honest energy comparison service will do this calculation for you — and we always do.
Mistake 4: Not Comparing at Renewal Time
Your energy contract is ending. Your supplier sends you a renewal offer. It looks reasonable enough. You sign it and move on. After all, switching sounds like hassle, and you've got a cafe to run.
This is one of the most expensive mistakes in business energy. Renewal offers from your existing supplier are almost never the best deal available. Just like insurance, loyalty is not rewarded. New customer rates are typically 10–20% cheaper than renewal rates.
For a cafe spending £8,000 a year on energy, a 15% saving by switching at renewal instead of auto-renewing is £1,200 per year. That's the average saving we deliver to cafe and coffee shop owners who come to us.
What to Do Instead
Set a reminder in your phone for 3 months before your contract ends. That gives you enough time to compare the market and switch before you either roll onto a deemed rate (very expensive) or get auto-renewed on poor terms (still expensive).
Better yet, let us manage it for you. When you switch through Smart Energy Business, we can proactively contact you before your contract ends to make sure you're always on the best deal.
Mistake 5: Not Considering Off-Peak Opportunities
Many cafe owners assume their energy usage is entirely daytime and there's nothing they can do about when they consume electricity. But there are often opportunities to shift some consumption to cheaper periods — especially if you're on a time-of-use tariff or can switch to one.
Some examples specific to cafes:
- Dishwashers: Run your main dishwasher load after closing rather than during the afternoon rush. If you close at 5pm and your off-peak rate kicks in at 7pm, a 2-hour delay could save you 30–40% on that cycle.
- Baking and prep: If you bake in-house, early morning baking (before 7am) may fall into cheaper off-peak bands on some tariffs.
- Defrosting fridges: Schedule your regular defrost cycles for overnight or early morning rather than during peak trading hours.
- Charging devices: Charge tablets, phones, and other devices overnight rather than during the day.
Individually, these are small savings. Combined over a year, they can add up to £200–£500 — and they don't require any investment, just a slight shift in routine.
What to Do Instead
Ask your energy supplier (or ask us) whether a time-of-use tariff would benefit your cafe based on your operating hours. If your current tariff already has off-peak rates, check when they apply and see which activities you can shift to take advantage.
How many of these mistakes is your cafe making?
Even fixing just one or two of these could save your cafe hundreds per year. And getting on the right tariff could save you £1,200 or more. Let us take a look — it's free and takes 60 seconds.
The Bigger Picture: Why This Matters Now
The UK has the highest industrial electricity prices in Europe — 89% above the EU14 median. That affects every business, but it hits hardest at the smaller end of hospitality. When you're a cafe selling coffees and sandwiches, there's only so much you can charge your customers. The cost pressure has to go somewhere, and too often it comes out of your margins.
27% of UK SMEs are currently struggling with energy bills. Hospitality businesses are disproportionately affected, with many spending 10–25% of their revenue on energy. For cafes, that proportion can be even higher because of the relatively lower revenue per customer compared to restaurants or pubs.
That's exactly why getting these fundamentals right matters. The five mistakes above aren't exotic or complicated. They're simple things that, when fixed, can save a typical cafe £1,000–£2,000 per year. That's money that stays in your business instead of padding your supplier's bottom line.
What to Do Next
You don't need to fix everything today. But here's a sensible order of priority:
- Check your contract: Are you in contract, out of contract, or about to renew? This determines your most urgent action.
- Compare the market: Whether you're renewing or out of contract, get a comparison. We specialise in energy for cafes and coffee shops and we'll find the best deal for your specific business.
- Implement the quick wins: Create a closing-down checklist, check your fridge seals, and get LED lighting quotes.
We specialise in helping hospitality businesses save on their energy. The average cafe saves £3,300 per year. For cafes, the average saving is £1,200 per year — and for many, the combination of a better tariff and the quick wins above delivers even more.
Your cafe deserves better than overpaying for energy. Let's fix that.