Working with a Papa John's franchisee in Cleveland - he's got 6 locations all with Illuminating Company. Bills range from $2,400 to $4,100/month depending on location size. Three locations seem way out of line with usage patterns. Anyone worked with pizza chains before? What should I focus on?
Franchise owner with 6 pizza locations
Pizza places are notorious for demand spikes Beverly. All those ovens cycling on during dinner rush can create massive demand charges. I worked with a Domino's owner - turned out two locations had faulty power factor correction that was making demand charges even worse.
Check their rate schedules too. Some utilities have restaurant-specific tariffs that can be better than general service, especially if they have high equipment loads. Also look at their outdoor signage - pizza places love those big illuminated signs and they're often metered wrong.
Both great points. With franchise operations, also verify they're all classified consistently across locations. Sometimes newer stores get put on different rate schedules than the original locations. The key with restaurants is understanding their load profile - huge spikes during meal periods can trigger demand charges that eat into already thin margins.
Thanks everyone. Found the issue on two locations - they were on general service but should have been on the restaurant schedule which has lower demand charges. The third location has a massive electric sign that's somehow on the building meter instead of outdoor lighting rate. Should be a good recovery for him.