Commercial Electricity for Restaurants in Texas
What a Texas restaurant pays for power - refrigeration, kitchen ventilation, cooking, and cooling - plus how demand charges from the dinner rush inflate the bill.
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Texas is home to over 53,000 restaurants and eating places, and electricity is one of their largest controllable costs - running refrigeration around the clock, pulling make-up air through the kitchen hood, and cooling a full dining room. This guide covers what restaurants of different types actually pay, where the power goes, and how to lower it. Jump to the guides for full-service restaurants and fast-food restaurants, or see bars; browse all our commercial electricity guides by business type.
Key Takeaways
- A typical Texas restaurant uses about 8,000–15,000 kWh a month - roughly $700–$1,500 at ~8.3¢/kWh - though high-volume kitchens run well above that.
- Refrigeration is the single biggest electric load (it runs 24/7), followed by HVAC and kitchen ventilation.
- Energy is typically 3–5% of a restaurant's operating costs, and about $2.90 per square foot per year.
- Demand charges from the dinner rush - when cooking, HVAC, and refrigeration all peak together - can add a lot.
- Refrigeration upkeep, demand-controlled kitchen ventilation, LED, and a fixed rate deliver the biggest savings.
A Restaurant's Power Bill, in Brief
Figures are estimates that vary widely by restaurant type, size, and volume. See methodology below.
What Drives a Restaurant's Electric Bill
Restaurants are among the most energy-intensive commercial buildings there are - often five to ten times the energy per square foot of a typical office. Electricity use scales with the kind of restaurant, how many covers it does, and how much refrigeration and ventilation it runs. Many kitchens also burn natural gas for cooking, so the electric bill leans heavily on refrigeration, HVAC, ventilation, and lighting.
Estimated usage & bill by restaurant type
| Restaurant type | Approx. sq ft | Monthly usage | Est. monthly bill* |
|---|---|---|---|
| Quick-service / fast food | ~2,500 | 6,000–12,000 kWh | $500–$1,000 |
| Full-service (sit-down) | ~4,500 | 10,000–18,000 kWh | $850–$1,500 |
| Large / high-volume | 7,000+ | 20,000–35,000+ kWh | $1,700–$2,900+ |
*Electricity portion at Texas's ~8.3¢/kWh average commercial rate. Many restaurants also use natural gas for cooking and water heating, billed separately.
How does the Texas commercial rate compare?
Texas businesses pay an average of about 8.3¢ per kWh - roughly 38% below the U.S. commercial average of ~13.5¢. Because Texas is deregulated, you can shop the supply portion of your bill across 30+ retail providers and lock in a fixed rate - compare current commercial electricity rates.
Cold, Heat, and Air: A Kitchen's Heaviest Loads
On the electric side, cold and air dominate. Refrigeration never turns off, and kitchen ventilation plus cooling work hardest exactly when you're busiest - which is also what sets your demand peak.
| System | Why it draws power | Approx. share | Est. cost / month* |
|---|---|---|---|
| Refrigeration | Walk-ins, reach-ins, ice machines running 24/7 | 25–35% | $280–$390 |
| HVAC & kitchen ventilation | Cooling plus exhaust hoods and make-up air | 25–30% | $280–$330 |
| Cooking & food prep (electric) | Ovens, fryers, griddles where electric | 15–25% | $170–$280 |
| Lighting | Dining room and kitchen | ~13% | ~$140 |
| Dishwashing & water heating | Sanitation and hot water | 8–12% | $90–$130 |
*Illustrative split of a ~$1,100/month bill. Restaurants that cook on gas shift more of the electric bill toward refrigeration and HVAC.
How the Dinner Rush Inflates Your Bill
Most of your bill is energy — the total kilowatt-hours (kWh) you use over the month. But many commercial accounts also carry a demand charge, billed on your single highest peak of power draw, measured in kilowatts (kW), usually over a 15-minute interval. It doesn't matter only how much electricity you use, but how fast you use it at your busiest moment.
How to keep demand charges down
- Add demand-controlled kitchen ventilation (DCKV) so exhaust and make-up-air fans ramp with cooking load instead of running full-blast.
- Stage equipment startup - don't preheat every oven, fryer, and A/C unit at the same moment.
- Pre-cool the dining room before the rush to soften the afternoon HVAC surge.
- Watch your interval data to see exactly when your monthly peak happens.
Demand Response Without Touching the Line
Demand response is a program where businesses agree to reduce their electricity use for short windows when the Texas grid (ERCOT) is under strain — typically late afternoons on the hottest summer days. In exchange, participating businesses earn payments or bill credits.
Practical Ways to Lower a Restaurant's Energy Costs
- Lock in a fixed commercial rate. Shopping 30+ Texas providers at the right time is usually the single biggest lever.
- Keep refrigeration tuned. Clean condenser coils, tight door gaskets, and correct settings cut your largest 24/7 load.
- Add demand-controlled ventilation. DCKV ramps hood fans with cooking load and can cut ventilation energy sharply.
- Switch to LED and add controls. LED dining and kitchen lighting on controls trims a steady ~13% of the bill.
- Upgrade to ENERGY STAR equipment. Efficient fryers, ovens, and dishwashers use far less energy and water.
- Review your demand and interval data. Knowing your peak kW tells you whether a different rate structure would save money.
Related Commercial Electricity Guides
Frequently Asked Questions
How much electricity does a restaurant use in Texas?
A typical Texas restaurant uses about 8,000 to 15,000 kWh per month, or roughly $700 to $1,500 at the state's average commercial rate of about 8.3¢ per kWh. Fast-food locations often use 6,000 to 12,000 kWh, full-service restaurants 10,000 to 18,000 kWh, and high-volume kitchens considerably more.
What uses the most electricity in a restaurant?
On the electric side, refrigeration is usually the largest load because walk-ins, reach-ins, and ice machines run 24/7, followed by HVAC and kitchen ventilation. Cooking may be electric or gas; where it is electric it adds a large share. Lighting is about 13% of the bill.
What is the average commercial electricity rate in Texas?
Texas businesses pay an average of about 8.3¢ per kWh as of 2026, roughly 38% below the U.S. commercial average of about 13.5¢. Your actual rate depends on your ZIP code, utility (TDU), usage, and when you sign your contract.
Why do restaurants get hit with demand charges?
A demand charge is billed on your single highest peak of power draw, measured in kilowatts over a short interval. During the dinner rush, cooking equipment, HVAC, and refrigeration compressors run at once, creating a sharp peak that a demand charge then bills across the whole month.
How can a restaurant lower its electricity bill?
The biggest levers are locking in a competitive fixed commercial rate, keeping refrigeration well maintained, adding demand-controlled kitchen ventilation, switching to LED, and upgrading to ENERGY STAR cooking equipment.
What is demand response and can a restaurant earn from it?
Demand response pays businesses to reduce electricity use during short grid-peak windows, usually hot summer afternoons. A restaurant can pre-cool, trim non-essential lighting, and ease HVAC for a couple hours in exchange for bill credits, without affecting food safety or the kitchen line.
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Get a Free Quote Call 866-284-9272Methodology & Sources
Business count: U.S. Census Bureau, County Business Patterns 2023 - 53,191 restaurants and other eating places (NAICS 7225) in Texas. Average commercial rate: EIA / state commercial averages (Texas ~8.3¢/kWh; U.S. ~13.5¢/kWh, 2026). Usage and the energy-user split are estimates drawn from restaurant industry sources and vary widely by type, size, volume, and how much cooking is gas vs. electric. Bills are electricity-only estimates and exclude natural gas, taxes, fees, and account-specific demand charges.
