One surprising thing that powers Canadian restaurants

One surprising thing that powers Canadian restaurants
By Geoff Atkinson
May 21, 2015

 
  
 

Hot water is the surprising thing that helps power restaurants

Ask an owner, chef or front-of-the-house manager about what powers a successful restaurant and the answers you receive will most likely be as diverse as the Canadian restaurant and foodservice landscape. Whether dine-in or quick serve, in bustling downtown or a small town, it is creativity, excellence, passion, efficiency, service and one more thing—hot water—that drive a successful establishment.

It would come as no surprise that most Canadians take hot water for granted. It is plentiful, inexpensive and reliable. A day without hot water is rare and, for most, inconvenient at worst. However, as any restauranteur could attest to, a kitchen quickly grinds to a halt without hot water. Imagine: grimy floors, waiting twice as long to heat pasta water and most crucially, no dishwasher, which means no plates, no forks, no glassware—and no customers.

That’s enough to put a significant dent into an industry with annual revenues in excess of $50 billion in Canada and margins of only four per cent. With numbers like that, a single day shutdown would wash away roughly a month’s profit.

 

Canadian restaurants can count themselves fortunate that the hot water service available to the industry is by and large efficient and reliable. Yet amid fierce competition in the business, taking a closer look at water heating technology is one way restaurants can control operating costs, cut risk and get a jump on the competition.

Efficiency and reliability are paramount

“We know from our decades of experience that for Canadian restaurants, reliability when it comes to the essentials such as hot water is the bread and butter of any successful operation,” says Geoff Atkinson, Director of Commercial Services for EnerCare Commercial Services, Canada’s leading provider of energy conservation products and services.

Nethris/CGI Jan - 2016

Restaurant owners need not be put off by the prospect of a large up-front expense when upgrading. Unlike many other capital costs, switching to a more reliable high efficiency hot water system has a minimal impact on cash flow. Some rental programs for commercial water heating equipment have no up-front costs for restaurant owners and the only out of pocket expense is a consistent monthly rental rate.  

The savings derived from a high efficiency water heater usually materialize immediately. A typical restaurant can expect to achieve cost savings of between $900 and $2,500 per year when upgrading from a standard 80 per cent efficiency water heater to a high efficiency water heater, which is 98 per cent efficient. Efficiency is maximized when the size of the water heater is appropriate for the level of day-to-day use. 

Gaining control

New technology also puts customers in control. For example, the iComm system, which is compatible with AO Smith’s commercial water heaters, allows restaurants to monitor usage from any web browser or mobile device and continually reports on the performance of the unit, sending proactive updates to technicians if an issue arises.

“Customers deserve to be empowered. Our customers tell us that reliability and service are the most important factors for Canadian restaurants when it comes to making a decision about a water heater,” Atkinson adds. “Customized equipment, specialized service and competitive rates are the primary reasons behind our strong partnership with the industry.”

While upgrading to the latest hot water technology provides immediate benefits, it helps future-proof restaurants against escalating costs too. For example, electricity rates are expected to climb by more than 20 per cent over the next two years, and the price of natural gas, which fluctuates daily, has risen by 35 per cent since the beginning of 2013.

“We advise restaurants to speak with an expert if they are thinking about upgrading their water heating systems,” said Atkinson. “They should investigate their current water use and energy bills in order to get a sense of what the most appropriate option is.”


About the author:

Geoff Atkinson is Director of Commercial Services for EnerCare Commercial Services, Canada’s leading provider of energy conservation products and services. Geoff has a strong technical background and 35 years of industry experience. His mandate at EnerCare Commercial Services is to provide reliable and efficient water heating solutions that satisfy the demands of Canada’s robust foodservice industry.

 
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