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“Too many operators still rely on guesswork” – new energy report a ‘wake-up call’ for industry
The ‘Watt’s Cooking? 2025’ reportfrom Hospitality Energy Saving & Sustainability (HESS) draws on data from thousands of hotels, restaurants, pubs, QSRs and leisure venues to provide what it calls “the clearest picture yet” of where energy is being used, where it’s being wasted, and how operators can turn cost pressure into competitive advantage.
According to the report, hospitality is one of the most energy-intensive commercial industries in the UK – often consuming many times more energy per square metre than offices or retail.
Yet for too long, energy management has been treated as a back-office concern.
The new findings reveal that this approach is not only outdated but potentially costly, as businesses face increasing scrutiny from investors, regulators and guests alike.
“This research is a wake-up call for the industry,” said Dr Sam Mudie, director of HESS. “Hospitality has spent the last few years firefighting – tackling staff shortages, inflation, food prices and supply chain disruption.
“Energy has often been seen as just another cost of doing business. But that thinking is no longer viable. Energy is now the third-largest controllable cost in the sector – after food and labour – and it’s the one with the greatest potential for quick, measurable savings.”
At a time when energy costs remain volatile and sustainability expectations continue to rise, the report suggests the sector has made progress, but ambition and action remain inconsistent.
While many operators have successfully reduced their energy intensity and site-level emissions over the past decade, others are yet to grasp the full opportunity.
Dr Mudie said the challenge was as much a cultural one as a technical one.
“Too many operators still rely on guesswork or outdated systems. Others get dazzled by technology without first addressing behaviours – what we call the ‘human watt’.
“Real change happens when people take ownership. When general managers, chefs and front-of-house teams understand how their actions affect energy, waste and cost, that’s when we see lasting impact. The biggest efficiency gains come from visibility, training, and leadership – not just new equipment.”
The report also highlights a striking divide between industry leaders and organisations.
While some major operators have adopted detailed energy reduction plans and ambitious net-zero targets, a significant proportion of large hospitality businesses have yet to take such steps.
This, says Dr Mudie, represents a “huge missed opportunity” – not only for cost savings, but also for compliance with tightening regulations such as the Energy Savings Opportunity Scheme (ESOS).
Despite the mixed picture, there are success stories. The report spotlights several standout operators that have embedded energy efficiency into their core culture, including Hall & Woodhouse, whose ‘Sustainable Day Making’ initiative has delivered measurable carbon reductions of more than 12%, and substantial £200,000 cost savings by empowering teams to act on data.
These examples show that with the right blend of insight, accountability and support, even traditional venues and heritage sites can achieve transformative results.
“This isn’t about chasing perfection,” Dr Mudie added. “It’s about progress and participation. Every site, every kitchen, every team can make a difference. The operators leading the way are those who understand that energy efficiency isn’t just good for the planet – it’s good business.
“They’re cutting energy bills, protecting margins, and future-proofing their brands in a volatile market. The rest of the sector has a lot to gain by following their lead.”
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