The search for energy efficient profitability in the hospitality sector sinks to
The search for profitability in the hospitality sector has sunk to its lowest point yet…the cellar. ‘Out of sight is out of mind’; most probably sums up how most landlords, managers or proprietors feel about their cellars, but now for the first time the Government backed ECA Scheme for energy-saving investments has been expanded to include cellar-cooling equipment. The inclusion of cellar cooling equipment is a major step forward for the hospitality sector with significant cash flow incentives now being made available not only for the purchase of cellar cooling equipment but also for the additional costs of delivery and installation.
The Enhanced Capital Allowance (ECA) scheme is designed to encourage UK businesses to reduce carbon emissions, which contribute to climate change by encouraging them to purchase Carbon Trust approved energy-saving equipment. The incentive for the hospitality sector is two fold, firstly, ECA qualifying energy saving- products are certified highly energy efficient and should produce significant long-term financial benefits by reducing energy bills. Secondly, tax breaks provide upfront tax relief, enabling businesses to claim 100% first-year capital allowances delivering a cash flow boost and shorter payback periods on investment. Interest free, unsecured loans are also available to help the hospitality sector bring its cellar cooling equipment ‘up-to-scratch’.
Hubbard Commercial is the UK’s first manufacturer of ECA qualifying cellar cooling equipment and as leaders in the field of commercial cooling and refrigeration for over twenty years have worked closely with both brewers and the leisure sector to create a range of cost effective and highly efficient cellar cooling equipment. Dougie Stoddart, Hubbard Commercial Manager says “With the ever increasing economic pressure on Managers and owners to improve their business models cutting energy costs are a good place to start and with this support from the Carbon Trust going green is not only environmentally friendly it’s financially viable as well”.
All of this is great news for the hospitality sector but especially the pub, bar and nightclub industry which in Great Britain alone is made up of over 62,500 individual establishments producing a combined turnover valued at over £18 billion.
No matter how big or small your organisation lifting the lid on the black hole that is your cellar could save you money as well as putting it back into your cash flow, for example a Hubbard cellar cooling system costing £2850 including delivery, installation and commissioning charges would experience an immediate ECA benefit of £236.55 based on a 10 year asset life and an internal rate of return target of 15%.
For more advice and to check out ECA approved cellar cooling equipment visit http://www.eca.gov.uk/etl.