Stave off energy rate rises – make sure you’re getting the best deal

In this first of a regular series, Foodservice Rep is partnering with Restaurant & Catering Australia to bring you practical advice, tools and tips to help you reduce costs and run your business more efficiently.

If your foodservice business has recently received a rate rise notice from your energy retailer, you’re not alone. But while it can feel alarming, Restaurant & Catering Australia has some good news.

R&CA’s official energy partner Choice Energy specialises in helping businesses including restaurants, cafes and catering operations navigate the energy market and secure better deals on electricity and gas. They’re an independent energy broker who works on your behalf to compare offers across the market and find the right fit for your business and bottom line.

Best of all, it doesn’t cost you anything – Choice Energy gets paid via a commission from the retailer once they’ve secured you a better deal.

“We would encourage any foodservice business to get in touch with us – the process is quick and simple so it’s really a no-brainer,” says Choice Energy Partnerships Specialist Alycia McCarthy.

“We find that around 80 per cent of business we assess are overpaying on their energy contracts – which is money that could be redirected into other areas.”

There are substantial savings to be made

“The problem for a lot of foodservice business owners is that they’re often paying more than they need to, without even realising. We find that around 80 per cent of business we assess are overpaying on their energy contracts – which is money that could be redirected into other areas.

“Most businesses receive a rate rise notice around midyear, which makes July/August a prime time to check prices. Statistics show that once you stay with an energy retailer for a year, you will most likely pay a loyalty tax of about 16 per cent, which then drops to about 12 per cent in the following years. A lot of people don’t think about their energy as long as the lights turn on and the gas is working, but once you start doing price comparisons, you realise there are substantial savings to be made.”

Alycia says that despite the rate increase notice you might recently have received, energy rates across the market are currently sitting at a three year low. This means now might be one of the best opportunities in years to lock in a more competitive rate before your existing energy contract rolls over to higher prices.

“Unfortunately it’s easy to be overwhelmed by the process – the ACCC’s assessment is that there are around 145,000 different types of energy plans out in the market, all with slightly different names and structures, making it difficult for you to do a direct comparison.”

“If you’re interested in solar or green power, we can find a solution that suits you”

And with food costs, labour, rent and the numerous other worries that foodservice businesses have to be concerned about, it’s no wonder that many operators don’t find the time to sit down and undertake a critical analysis of the data to work out the best option for them.

“I think a lot of people feel it’s just too hard – plus they want to trust their retailer,” Alycia acknowledges. “That’s why we do all the hard work for you – we’ve partnered with over 20 retailers including the majors like Origin Energy, AGL and EnergyAustralia. We take your latest gas or electricity bill and undertake an energy assessment – we look at the network charges, tariffs, peaks and off-peak rates, sustainability options and so on, and we then go to tender on your behalf to see where you can get the best savings. And if you’re interested in solar or green power, we can find a solution that suits you.”

“It can make a world of difference”

Once Choice Energy presents its findings, there’s no obligation to switch suppliers or plans – but if you want to take advantage of a better offer they’ve found, it’s as simple as signing an agreement and then the switch over is done.

But that isn’t the end of the story – once you’re in Choice Energy’s system, they will reach out annually to see whether your rates need re-assessing, depending upon whether you’re on a small or large market contract. “Large market contracts have the advantage of being able to forward-contract, so if the market drops we can forward-contract your lower energy rates, locking them in for the next two to three years,” Alycia explains.

Australian owned and operated, Choice Energy operates Australia wide, except in WA and NT (which have their own separate energy markets). They have offices in Melbourne and Brisbane and a rapidly growing team who helped business collectively save $70 million last year.

You can see case studies of how foodservice businesses saved money through Choice Energy on their website.

Gumnut Patisserie (the subject of this recent Foodservice Rep story) has saved more $40,000 across three locations since 2023, while East Brunswick Hotel cut its projected annual energy costs by $15,000 through following Choice Energy’s advice. By transitioning to a large market contract through Choice Energy, Nino’s of Victor Harbour was able to save $12,000 annually.

“For many foodservice businesses, it can make a world of difference,” Alycia affirms. “You get the peace of mind of knowing you’re on the best rates – on average we find savings of 12 to 19 per cent – and the process is so simple. It usually takes you around 15 minutes on the phone to secure that peace of mind.

Alycia is part of a proactive, motivated team who are continually reaching out to foodservice businesses.

“We are not just energy brokers – we’re highly in tune with the market and we understand the future of energy,” Alycia emphasises. “We’re focused on the various policies Government is bringing on board, the influence of large data centers and so on – we’ve got a lot of thought leaders in this space and we see ourselves as consultants to the energy market.”

Ready to check your energy rates? Email your details to membership@rca.asn.au and R&CA will put you in touch with the Choice Energy team.

As the national voice for over 57,000 foodservice businesses, the R&CA offer practical tools, trusted advice, and meaningful advocacy that supports your business.