Posts Tagged: cost of power outage
True Story . . . I attended to a network meeting last week only to find the electricity was out at the restaurant where we regularly meet!
They said a transformer blew out, which happens more often than you would think. There was no rain or wind that morning, but it just popped and right at lunch time. It knocked out their electricity so they could not run their restaurant during some of their most busy times.
How much money can a restaurant lose without electricity?
First, let me give you some context of why I was meeting at Spring Creek. I meet with a business networking group on the 2nd and 4th Tuesday of every month. It is a great way to connect to other business leaders and eat some good BBQ. I have noticed at least two other small groups of people meeting on those same Tuesdays.
In our group we had 12 people this week. Usually we see two other groups of 6 and 8 people. Then, we see people coming in and out all through our hour we are meeting.
Just estimating (because I noticed how many people are coming and going), the line fills up at 15 people and it fills up about 10 times while we are there for one hour. That adds up to 150 people. At $10 a lunch plate and $2 a drink, the average is $1800 per hour, not including groups, larger order take-outs or desserts. (I ran these numbers by a person who used to run a restaurant and he confirmed my estimates are spot on.)
This restaurant could have lost around $5000 over the course of lunch. And, if the electricity was out for supper, you can probably double that amount. In just one day they could have lost more money that it would have taken for them to install a permanent industrial generator for their restaurant.
Of course, that cost does not even account for any food they had to throw out due to loss of refrigeration. It also does not account for workers who they had to pay since they showed up for work. Yikes, a power outage at a business can cost a lot of money very quickly! My friend, who is a business owner decided to compare quotes for his electricity while the power was working as it should and saved a bunch of money. Usave got him his quote. read this to find out more.
Backup generators keep a business up and running during a power outages preventing losses in revenue and productivity.
If you have a business, I want you to seriously consider the cost of power going out for just a few hours. What if we have a big storm and it goes out for a few days?! I would love to chat with you about a permanent solution to help keep your business with power and keep your business making money. Call us at 214-207-0506.