Utilities Cost for A5 Sandwich/Coffee Shop

[FreshSandwiches]

Hello everyone,

I am in the middle of formulating my business plan for the bank manager and am stuck as to how to work out the costs of utilities for the shop, this is obviously needed for absorbing costings into the price of the food and the bank manager.

I have an idea at how much the rent and rates are from looking at A5 shops in the areas I am looking to start it.

The shop will have a double upright freezer, upright fridge, two serve over counter display fridges, a drinks display fridge, these are the constant power consumers, but I would also like an electric oven with hobs, microwave, panini grill, two cup espresso machine, toaster and kettle but wont know the lighting set up until I have actually got the shop.

Also a small desktop pc, for online ordering.

Standard size single fronted A5 shop.

Does anyone have a similar business, who could shed some light on what they are paying for electricity?

Thanks in advance.

 

[Talay]

A microwave will use perhaps 1000w for 1 minute but nothing when not being used whereas a fridge will use power constantly over the full 24 hours, though not at a level rate of consumption.

Lighting is one area where you can seriously save on electric. I kitted a basement out and if I had 40 lamps at 100w then my hourly consumption would be 4kw or about 60p an hour. If on for 12 hours a day, 7 days a week, that would cost £50 a week or £2500 a year.

Replace then with 5w LEDs and you used 1/20th of the cost or about £120 a year, saving £2400 or thereabouts.

Get an Excel spreadsheet, put down the consumption of each unit, add in the hours in operation per day etc. and work out the total consumption in kwh and then in GBP.

You could get on manufacturers websites for consumption figures or email off.

 

[benjihubbs]

Tally, i think you're getting a little too complex with the consumption figures, yes this is very correct if you want accuracy, but bank managers are really only looking for an estimate, nothing will ever be 100%, and so working it out like that will be a waste of time. Providing it's not just a random figure out of thin air, i'm sure you'll be ok with a well educated estimate

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[Talay]

Tally, i think you're getting a little too complex with the consumption figures, yes this is very correct if you want accuracy, but bank managers are really only looking for an estimate, nothing will ever be 100%, and so working it out like that will be a waste of time. Providing it's not just a random figure out of thin air, i'm sure you'll be ok with a well educated estimate

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Without doing any calculations based even loosely on facts then any figure quoted is going to be of finger in the wind accuracy. I even went so far as to give a specific example how a choice of light bulbs could blow a £2k hole in a budget.

It isn't supposed to be 100% accurate but as the items will need to be itemised for cost and insurance purposes, it is hardly an onerous task to plug the consumption details into a spreadsheet.

Being £50/£100 a week off base on 10 different items would kill a start up with limited budget and hardly impress any bank manager.

 

[vvaannmmaann]

Hang on OP.Do you have a shop in mind? Has it be used to prepare hot food? Check with your local planning department before going much further.If you require any sort of mechanical fume extraction they will have to have the final say.

In the meanwhile - This sort of thing any use to you?
http://www.ukpower.co.uk/tools/running_costs_electricity/

 

[FreshSandwiches]

Hang on OP.Do you have a shop in mind? Has it be used to prepare hot food? Check with your local planning department before going much further.If you require any sort of mechanical fume extraction they will have to have the final say.

In the meanwhile - This sort of thing any use to you?

I dont have a shop in mind but will only be looking for one with all that set up already, my Mum is an environmental helath inspector for a local council so all that kind of staff she has already advised on. Will only be looking for ex-A5 shops with current fume extractors on my budget.

Yes that link will help, thanks very much.

Although a rough estimate from anyone on here with a similar business for my own calculations in the meantime would also help.

 

[antoine82]

You cain aim at roughly £300/ month for the electricity.
Do you use gas?

 

[Philip Hoyle]

You cain aim at roughly £300/ month

I've just had a quick look at a handful of my clients who have either convenience stores (small corner shop size) using a fairly typical mix of fridges, freezers, lighting, etc., and small cafe's/sandwich bars.

The range is between £2k and £5k p.a., so I don't think you'd be too far out if you use an estimate of say £300 as suggested, i.e. £3,600 per year. Not ideal, but it is hard to estimate, and you're not going to be more than say £150 per month out either up or down, which shouldn't wreck your business plan.

 

[FreshSandwiches]

Thanks everyone, I'll use £300 as an estimate for the time being and work it out properly in the coming weeks.

 

[mpen]

Hi I have a Sandwich shop, its quite busy, not town centre my costs are

electric (quarter) £1900
Gas (quarter) £400
insurance (month) £89
waste (quarter) £290
water (quarter)£220
telephone/fax/pdq (quarter) £190

hope this helps

 

[My Owl 1]

It does depend on the amount of electricity you use more on the freezers and fridges, everything else is minimal. When you look into your refridgeration you should be able to work out how much they would use per hour and then extrapolate that to get an estimate cost. I would also contact a broker to see if your size of business could get you cheaper rates although with a broker you would be tied into a contract.
Having a day meter and a night rate meter is not always as cost effective as it might be because day rates are sometimes ridiculosly high. But can be a good bet for fridges and freezers. It really is weighing out the prs and cons.

Happy to assist you with contacting a broker and giving you some figures on our rates too.

I do think however you should be looking at at least £400 to £500 for your energy(gas and electricity).

Hope that helps.
Best wishes

Avril
helping businesses cut their costs of their utility bills.