Average Gas Bill for a Restaurant in the UK
Introduction
Gas is the backbone of most UK restaurant kitchens. From the hobs and ovens running through a busy lunch service to the boilers keeping dining rooms warm through winter, gas consumption in a food business adds up quickly — and the bill at the end of the month can be one of your biggest fixed costs.
Yet many restaurant owners have no clear idea what they should be paying. They receive a bill, pay it, and move on — without knowing whether they’re on a fair tariff or quietly overpaying by hundreds of pounds a month.
This guide breaks down the average gas bill for UK restaurants in 2026, what drives the differences, how costs vary by size and region, and what you can do to bring your bills down. We’ve also included links to commercial gas, business electricity, water services, and smart meter options if you want to explore further.
For the latest commercial gas price benchmarks, see Ofgem’s business energy guidance.
What Affects a Restaurant’s Gas Bill?
Before looking at average figures, it helps to understand what drives gas consumption in a food business. No two restaurants are the same — but these are the key variables:
Kitchen size and equipment. A large commercial kitchen with multiple gas hobs, a char-grill, a commercial oven, a salamander, and a deep fat fryer will consume far more gas than a small café running a single oven and a two-ring hob. The more gas-fired equipment you operate, the higher your baseline consumption.
Opening hours and covers. A restaurant open seven days a week for lunch and dinner burns significantly more gas than one open five evenings only. Peak service periods — when every burner is on full — drive the biggest spikes in consumption.
Heating and hot water. Many restaurants use gas-fired central heating and water boilers alongside kitchen equipment. In winter especially, heating a large dining room with high ceilings can account for 20–30% of total gas usage.
Building insulation and age. Older buildings with poor insulation lose heat faster, forcing boilers to work harder. A modern, well-insulated unit will always be cheaper to heat than a period property with draughty windows and thin walls.
Tariff type and contract. Whether you’re on a fixed or variable rate contract, and whether your current deal reflects competitive market rates, can make a substantial difference to your unit cost — independent of how much gas you actually use.
Average Gas Bill for UK Restaurants (2026)
The figures below are based on 2026 commercial gas tariff data. Restaurant sizes are defined as follows:
- Small restaurant = up to 30 covers, limited kitchen equipment
- Medium restaurant = 30–80 covers, full commercial kitchen
- Large restaurant = 80+ covers, high-volume kitchen operation
All figures are ex-VAT and approximate.
| Restaurant Size | Monthly Gas Bill | Annual Gas Bill |
| Small (up to 30 covers) | £140–£320 | £1,680–£3,840 |
| Medium (30–80 covers) | £280–£720 | £3,360–£8,640 |
| Large (80+ covers) | £550–£1,600 | £6,600–£19,200 |
Approximate ex-VAT estimates based on 2026 commercial tariff data.
📊 Annual Gas Cost by Restaurant Size — Visual Comparison
Regional Variation
Just as with electricity, gas prices for businesses vary by region due to network distribution costs and supplier competition. Here’s a rough guide to how location affects your gas unit rate in 2026:
| Region | Approx. Unit Rate Range |
| London | 7.5–9.5p/kWh |
| South East | 7–9p/kWh |
| Midlands | 6.5–8.5p/kWh |
| North West | 6–8p/kWh |
| Yorkshire | 6–8p/kWh |
| Scotland | 5.5–7.5p/kWh |
London and the South East consistently sit at the higher end, while Scotland and the North tend to offer more competitive rates — particularly on fixed-term contracts.
How to Estimate Your Own Gas Bill
Use this simple formula:
Monthly Gas Cost = Daily Usage (kWh) × Days Open × Unit Rate (p) ÷ 100
Example: A medium restaurant in Birmingham using 200 kWh of gas per day, open 25 days a month, on a 7.5p/kWh tariff:
200 × 25 × 7.5 ÷ 100 = £375/month ex-VAT
For an annual figure, multiply by 12 — then add 20–30% for winter months when heating load increases significantly.
Ways to Reduce Your Restaurant’s Gas Bill
Switching to a better tariff is the fastest win — but there are operational steps that compound the savings over time:
Get on the right contract. Many restaurants are sitting on expired contracts that have rolled onto expensive out-of-contract rates. Comparing the market through a broker like Utility7 takes minutes and can identify significantly cheaper deals.
Service your equipment regularly. Poorly maintained boilers and kitchen equipment run less efficiently, burning more gas for the same output. An annual service on your boiler alone can improve efficiency by 10–15%.
Install a smart meter. A smart meter gives you real-time visibility of your gas consumption, making it far easier to spot waste — like heating running overnight or kitchen equipment left on between services. Utility7 offers free smart meter installation to business clients.
Upgrade old kitchen equipment. Older commercial ranges and ovens are significantly less efficient than modern equivalents. If your kitchen equipment is more than 10 years old, it may be consuming 20–30% more gas than a current model doing the same job.
Review heating controls. Programmable thermostats and zone heating controls ensure you’re only heating the spaces you need, when you need them. A dining room that’s fully heated two hours before opening is wasting money.
Insulate where possible. Draught-proofing doors, insulating hot water pipes, and fitting thermal blinds on large windows are low-cost measures that reduce heat loss and lower the demand on your boiler.
FAQ
What is the average gas bill for a small restaurant in the UK?
A small restaurant with up to 30 covers typically spends between £1,680 and £3,840 per year on gas, or roughly £140–£320 per month. This varies depending on kitchen equipment, opening hours, and whether the premises uses gas for heating as well as cooking.
Is gas or electricity cheaper for restaurant cooking?
In the UK, gas remains cheaper per unit than electricity for cooking — typically 6–9p/kWh for commercial gas versus 25–35p/kWh for commercial electricity. Most professional kitchens use gas for cooking and electricity for refrigeration, lighting, and ventilation to keep overall energy costs balanced.
How can a restaurant reduce its gas bill?
The most impactful steps are switching to a competitive tariff, servicing boilers and kitchen equipment annually, installing a smart meter to track consumption, and reviewing heating schedules to avoid unnecessary usage outside opening hours.
Do restaurants pay VAT on gas?
Yes. Most restaurants pay 20% VAT on commercial gas. However, if your business uses below a certain threshold (currently 73,200 kWh per year for gas), you may qualify for the reduced 5% rate. It’s worth checking with your supplier or an energy consultant if you think you may be eligible.
Conclusion
The average gas bill for a UK restaurant in 2026 ranges from around £1,680 per year for a small operation to over £19,000 for a high-volume kitchen. Where your restaurant sits in that range depends on your size, location, equipment, opening hours, and — critically — whether you’re on a competitive tariff.
The good news is that the commercial gas market is competitive, and restaurants that actively manage their contracts and consumption consistently pay less than those that don’t. A single tariff switch can save hundreds or even thousands of pounds annually, with no disruption to your business.
Ready to Lower Your Restaurant’s Gas Bill?
Utility7 is a trusted business energy consultancy helping restaurants, cafés, and hospitality businesses across the UK get competitive commercial tariffs from trusted suppliers — covering gas, electricity, water, and smart meters.
We handle the comparison, the paperwork, and the switch. You stay focused on your kitchen.
- Free, no-obligation energy comparison
- Competitive commercial gas tariffs from trusted suppliers
- Hassle-free switching — we manage the process end to end
- Free smart meter installation for business clients
- Dedicated support for hospitality and food businesses
- Our clients save up to 50% on their utility bills after switching.
Get a free no-obligation quote in under 60 seconds.
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📅 Last Updated: May 2026