2026-06-11
Energy costs for hospitality businesses in the United Kingdom have risen far faster than for many other sectors over the past decade, according to new data from Dojo’s Inflation Index, adding pressure on hotels, pubs, bars and catering companies already dealing with tight margins and high operating expenses.
The research found that energy prices for U.K. hospitality businesses increased by an average of 65% over 10 years. Catering companies recorded the steepest rise at 73%, followed by hotels at 64% and pubs and bars at 57%. Across all U.K. businesses, operating costs rose by an average of 48%, the index said, placing hospitality among the sectors most exposed to higher utility bills.
The figures come as energy use remains a central issue for food service and lodging operators, where refrigeration, cooking equipment, hot water systems, laundry, lighting and climate control all consume large amounts of power. For restaurants, bars and hotels, energy is not a background expense but a daily cost tied directly to service.
The debate over how venues should respond has also drawn political attention. Earlier this year, Britain’s energy secretary suggested that hospitality businesses could save money by serving warmer beer during the summer, a remark that drew notice across the trade. Against that backdrop, Bionic, a U.K. comparison service for small businesses, said more practical savings can be found in maintenance, lighting upgrades, staff behavior, metering and contract management.
Les Roberts of Bionic’s business energy team said one of the most overlooked areas is water management. Hot water systems are especially energy-intensive in hospitality settings because they support kitchens, guest rooms, dishwashing and cleaning. Roberts said even modest cuts in water use can reduce both water waste and energy consumption. He pointed to leaks, dripping faucets, aging infrastructure and inefficient fixtures as common sources of hidden costs for small and midsize operators. Regular audits, repairs and equipment upgrades, he said, can produce immediate savings.
Lighting is another major area of concern. Bionic said lighting can account for up to 40% of electricity use in some businesses, particularly when daylight hours are shorter. The company recommends installing motion sensors in low-traffic spaces such as restrooms and storage rooms so lights switch off automatically after short periods of inactivity. It also advises replacing halogen bulbs with LED lighting. According to Bionic, LED bulbs use 90% less energy than traditional incandescent bulbs and last much longer, helping offset their higher upfront cost.
Staff habits also play a role in utility spending. Bionic cited separate research showing that 35% of small business employees waste more energy at work than they do at home, even though many follow energy-saving practices in their personal lives. That gap suggests that workplace routines often go unchecked in busy service environments. Roberts said operators should explain energy-saving goals clearly to employees and consider incentives or rewards to encourage participation.
The company also urged hospitality businesses to install smart meters to track consumption more closely. Real-time data can show when energy use spikes during the day and help managers identify waste patterns tied to equipment schedules or operating routines. In venues where kitchens open early, bars close late and hotel services run around the clock, that kind of visibility can help owners make targeted changes rather than broad cuts that affect service.
Another risk comes from contract terms rather than consumption itself. Bionic warned that businesses that miss their renewal window may be moved automatically onto deemed or out-of-contract rates once a fixed-term agreement ends. Those rates are typically 20-50% higher than a negotiated fixed deal, the company said. Because those charges are variable and not protected in the same way as fixed contracts, they can quickly raise bills for operators who fail to review supply agreements on time.
For hospitality businesses, the issue is especially urgent because many cannot easily reduce core energy use without affecting guests. Hotels must keep rooms heated or cooled, restaurants must run extraction systems and refrigeration continuously, and pubs depend on cellar cooling and draft systems to maintain product quality. That leaves operators looking for savings in efficiency rather than simple cutbacks.
The latest figures underline how exposed the sector remains to utility inflation even as it continues to recover from years of disruption and changing consumer demand. With food costs, wages and financing expenses also under pressure, energy management is becoming a larger part of day-to-day decision-making for hospitality owners across Britain.