Case Study

National Restaurant Operator Gains Greater Cost Control Through Competitive Procurement

National Restaurant Operator Gains Greater Cost Control Through Competitive Procurement

The opportunity

A global casual dining leader sought to centralize energy procurement, reduce costs, and improve efficiency across its extensive U.S. portfolio.

With numerous restaurant locations operating across multiple energy markets, the company faced significant complexity in managing electricity and natural gas procurement. Frequent store openings and closures added another layer of difficulty, requiring an energy strategy capable of adapting to an evolving portfolio.

The restaurant operator needed a centralized procurement approach that could improve pricing, strengthen contract management, and create greater consistency across its facilities. Tradition Energy was engaged to evaluate the portfolio, identify inefficiencies, and introduce greater competition into the procurement process.

Analysis

Tradition conducted a comprehensive review of the client’s utility bills, energy contracts, and procurement practices. The analysis identified several opportunities to reduce unnecessary costs, improve contract oversight, and establish a more competitive procurement strategy across the national portfolio.

Tradition found that frequent restaurant openings and closures were not being fully incorporated into the company’s energy strategy. This created procurement inefficiencies and unnecessary costs as the portfolio changed over time.

The review revealed widespread overpayment resulting from a non-competitive procurement process that relied on a single energy supplier. Tradition identified an opportunity to introduce competition and obtain more favorable pricing across the portfolio.

Tradition also discovered that numerous accounts had not been renewed before their contracts expired, resulting in costly post-contractual rates. A more proactive renewal process would help prevent these unnecessary charges and improve ongoing cost control.

The Result:
Greater Competition, Stronger Cost Control

Expanded Supplier Competition

Tradition conducted a competitive procurement process using its proprietary TEPS pricing system, resulting in agreements with four electricity suppliers and three natural gas suppliers across the client’s markets.

Improved Portfolio Management

A centralized procurement strategy provided greater oversight of contracts, renewals, and changing facility needs, helping reduce exposure to overpayments and costly post-contractual rates.

Additional Value Opportunities

Beyond energy procurement, Tradition identified opportunities to deliver additional value through tariff audits and sustainability solutions, expanding the client’s potential for long-term savings and energy optimization.

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For decades, organizations have trusted Tradition Energy to navigate increasingly complex energy markets. As the nation’s largest independent energy procurement and sustainability solutions advisor, we bring clients resources, market reach, and transaction activity other advisors cannot replicate.

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National Restaurant Operator Gains Greater Cost Control Through Competitive Procurement