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Hidden utility charges restaurants often miss

Hidden utility charges restaurants often miss

Ironically, some of the biggest hidden utility charges for restaurants are the ones most often overlooked, quietly putting a dent in profits.

Many of us treat utility bills as something we just pay, without much inspection. But in the hospitality industry, where margins are tight, this lack of inspection can often mean money slipping through the cracks every month.

Now is the time to really see and understand where the hidden utility charges for restaurants are coming from and why paying attention can lead to better cost control and fewer unwelcome surprises.

Why restaurant utilities are so easy to overlook

The problem of overlooking hidden utility charges in the restaurant scene isn’t unusual. After all, owners and operators are busy wearing many hats, in the form of managing staff, kitchens and the overall service required to build a good reputation. 

So, it’s no surprise that when the bills come, usually from different providers and full of technical tariff language, they’re simply paid as a priority, rather than carefully inspected. 

Common hidden utility charges for restaurants

When restaurant bills seem consistent month to month, it’s easy to assume that everything is in order. But some of the most impactful costs are the ones that don’t stand out at all.

Standing or daily fixed rates

Because standing charges don’t fluctuate in the same way usage does, they rarely attract much attention. However, these charges can increase r renewal or vary between contracts – meaning restaurants may be paying more than necessary without even realising. Over time, even small daily differences can add up to a significant annual cost.

Pro tip: review your long-standing contracts.

Estimated billing

When bills are based on estimated readings, instead of actual meter data, the numbers don’t always reflect real-world usage. This is particularly true of restaurants that experience a high variation in seasonal demand. Automatic overestimates can lead to months of overpaying before they are actually spotted and rectified, making expenses appear higher than they truly are and causing cashflow challenges over the course of a year.

Pro tip: switch to a smart meter for more accurate meter readings.

Out-of-contract or rollover rates

Sometimes convenience means overpaying. More often than not, if a utility contract ends without a new agreement in place, suppliers may place the business on out-of-contract rollover rates. According to Ofgem, these are typically different from a deemed contract rate, and because changes happen automatically, restaurants may continue paying higher rates without realising a contract renewal has affected their pricing.

Pro tip: Trust a utility supplier that works with you to manage contracts around your needs – like we do at Everflow.

Water and waste add-ons

Water and waste bills often include additional charges such as surface water drainage or wastewater services. Surface water drainage, in particular, is based on how rainwater drains from a property and can vary depending on site characteristics. Suppliers frequently apply these fees by default, even when they don’t match a restaurant’s actual setup or needs. Worse still, they’re usually quite unnoticeable in statements.

Pro tip: Find out how your site is classified for drainage and wastewater. Incorrect property details can lead to charges that don’t match how your restaurant actually operates.

Why regular utility reviews matter

One of the most proactive ways to avoid hidden utility charges for restaurants is to choose a supplier that simplifies billing and makes costs clearer, so nothing expensive slips under the radar. That’s exactly what we’ve done at Everflow. We’re focused on making it much easier to understand and inspect your utility bills, no matter how big or small the cost.

Contact Everflow today!

At Everflow, our goal is to make your utilities simpler – we ensure you get great-value contracts that are tailored to your needs and easy to manage. Get a bespoke quote using the link below.