In the continuously evolving hospitality industry, the drive for sustainability has emerged as a defining trend. In Australia, where pubs play a significant cultural role, this green movement is largely driven by customer demand, providing compelling economic benefits that encourage small businesses to adopt more sustainable practices.

By reducing energy and water consumption, minimising waste, and optimising resource management, pubs can significantly lower their operating costs.

With the government continually pushing for net-zero targets, there are various financial incentives, grants, and tax breaks for small businesses that adopt sustainable practices.

Energy-efficient measures and renewable energy sources can drastically cut utility bills, while effective waste management can reduce disposal costs and sometimes generate additional revenue from selling recyclables.

A pub that distinguishes itself from competitors by committing to sustainability can boost patronage and establish itself as a leader in innovation, driving increased revenue by attracting a growing base of environmentally conscious consumers, who are more inclined to support businesses that prioritise eco-friendly practices.

Partnering with local suppliers, supporting community environmental initiatives, and offering organic, locally sourced food and beverages can strengthen ties with the local community and enhance the pub’s reputation and customer loyalty.

Here is a list of key areas to address, along with potential solutions to consider when investing in the journey toward managing a more sustainable pub.

Refrigeration systems

In hospitality venues, like pubs, refrigeration can account for 30% to 40% of energy consumption. Old or ineffectively maintained units can cost a business more to run than new, energy efficient units.

Typical maintenance for refrigerators in a pub includes calibrating thermostats, reviewing setpoints, optimising defrost settings, and checking refrigerant charge.

Additionally, it is important to inspect dirty condenser and evaporator coils and filters, damaged cold room doors, and refrigerated cabinet seals, as well as damaged or missing insulation on pipework.

Regular cleaning of coils and filters, repairing seals, and ensuring proper insulation can improve the efficiency of these refrigerators.

If a pub’s refrigerators are over 10 years old or show signs of physical deterioration that cannot be fixed, upgrading to newer systems that offer improved energy efficiency, reliability, and reduced operating costs, should be considered.

Lighting

Utilising natural light through thoughtful design is an excellent way to reduce lighting consumption. However, this is not always possible, particularly in older, more established buildings.

In Australian hospitality environments like pubs, lighting can account for up to 15% of energy consumption. Replacing traditional incandescent and fluorescent globes once they expire with LED bulbs which are 50% - 60% more energy efficient, can significantly improve the energy bill.

LED bulbs have a longer lifespan and run cooler, impacting climate control in these spaces. 

Installing smart technology like motion sensors in low-traffic areas like restrooms and storage rooms to automatically turn off lights when not in use, will save costs.

Similarly, installing sensors in outdoor areas where artificial lighting will only be necessary on occasion and at certain intensities, can also minimise running costs.

Heating, cooling and air ventilation

Climate control can account for up to 60% of energy consumption in a pub. While smart design can reduce the need for air conditioners, upgrading to smart, energy-efficient HVAC systems, which are regularly serviced and well maintained, can save costs when structural changes are not an option.

Pubs can program the HVAC to start cooling the space to be comfortable when guests start arriving and switch off as guests start leaving.

Regular maintenance by a qualified technician should include cleaning filters, checking refrigerant charge, adjusting control settings, and calibrating thermostats. Coils, filters and pipework should regularly be serviced to optimise the functionality and lifespan of the HVAC system.

Upgrading the building insulation can also result in up to 40% reduction in heating and cooling costs.

Demand-controlled kitchen ventilation is a cutting-edge system aimed at enhancing energy efficiency and ventilation performance in commercial kitchens.

Conventional ventilation systems operate at a constant rate, but these systems adjust dynamically based on real-time cooking activity and air quality.

It is advisable to install these systems during renovations or kitchen refurbishments, as upgrades to fans and ductwork may be necessary to ensure compatibility.

Solar panels

Electricity consumption constitutes a significant portion of a pub's operating costs. Installing a rooftop solar system can be a worthwhile investment and pubs can take advantage of government incentives to help offset the initial investment costs of the solar system.

The exact savings generated from the solar system will depend on the pub’s size, set-up and energy usage.

Water conservation

Regular maintenance and staff education is essential in reducing water consumption and promoting sustainable practices in a pub.

Common fittings and appliances can also be upgraded to reduce water consumption including low-flow taps, pre-rinse valves that use significantly less water and high-efficiency dishwashers. 

In Australia, the Water Efficiency Labelling and Standards (WELS) scheme is compulsory and indicate the water efficiency of a product, making it easier to compare products and make informed, sustainable choices.

Other sustainable practices include water recycling systems for non-potable uses like landscaping, recycling programs for glass, paper, plastic, and metals, and composting food waste to reduce landfill contributions. Choosing suppliers that use minimal and recyclable packaging can also significantly reduce environmental impact.

Many of these green initiatives require replacing old, inefficient Division 40 plant and equipment as well as identifying areas for continuous improvements and investment in significant Division 43 capital works and upgrades.

If you are considering sustainable upgrades or renovation on your pub, consulting with a depreciation specialist like BMT Tax Depreciation will ensure that all depreciation deductions are maximised on the journey to creating a more sustainable pub.

For more expert advice contact BMT Tax Depreciation on 1300 728 726 or request a quote.

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