Industry
Hospitality / Restaurant
Energy Procurement
• Estimated annual saving across 2 sites: $16,609
• 23.3% reduction in total electricity costs
• Previous combined annual energy spend: $71,337
• Total consumption across sites: 184,926 kWh per year
• 2 NMIs consolidated into a single competitive tender
• 36-month term available: saving $52,365 over 3 years (24.4% reduction)
Chopstix House
Hương Xưa is a well-presented Vietnamese restaurant operating across two sites in NSW. Known for its authentic Vietnamese cuisine and warm dining atmosphere, the business operates across two separate premises — each carrying its own electricity account and supply contract — making coordinated
energy management both important and often overlooked.
The Challenge
Both of Hương Xưa’s sites were billed under an SME billing structure — one consuming 114,926 kWh per year, and another consuming 70,000 kWh annually. With contracts across two different retailers and no active procurement strategy in place, the business faced the risk of rolling onto default market rates across both accounts.
The combined annual energy spend of $71,337 represented a significant operating cost for a hospitality business — and one that had never been put to market in a structured, competitive way. Like many restaurant operators, Hương Xưa had historically managed energy as a passive overhead rather than an actively procured input.
Our brief was straightforward: consolidate both accounts into a single competitive tender, go to market before the contract expiry, and secure the best available rates across all term options.
Identifying the Opportunity
By bringing both sites to market simultaneously under a single tender, we were able to present Hương Xưa’s combined consumption profile as a more attractive package to retailers — drawing competitive responses from all major retailers.
Offers were assessed across four contract terms — 12, 24, 36 and 48 months — giving Hương Xưa full visibility over their options and the ability to choose a term that aligned with their business planning horizon.
The tender produced the strongest result across the key term options:
• 12-month term (to Mar 2027): $54,728 — saving $16,609 (23.3%)
• 24-month term (to Mar 2028): $53,814 — saving $34,327 over 2 years (24.0%)
• 36-month term (to Mar 2029): $53,299 — saving $52,365 over 3 years (24.4%)
Notably, the 36-month term delivered the strongest per-year saving at 24.4%, reflecting the value of longer-term rate locking in the current energy market — particularly relevant as new generation capacity expected to come online in 2025–2026 may influence pricing through 2027 and beyond.
The Results
The coordinated two-site tender delivered a strong and immediate outcome for Hương Xưa:
• We reduced Hương Xưa’s combined annual energy costs by an estimated $16,609 — a 23.3% saving on their previous combined spend of
$71,337.
• A single coordinated tender replaced two separately managed contracts across two different retailers, simplifying future renewals and creating genuine negotiating leverage.
• The 36-month option was also presented, offering a cumulative saving of $52,365 over 3 years — providing the business with exceptional price certainty through to March 2029.
• The entire process was managed end-to-end by Spinifex Energy — from analysis through to signed contracts — with no disruption to restaurant operations.
For restaurants and broader hospitality operators running multiple sites, the opportunity to manage energy procurement as a coordinated, competitive process — rather than a passive contract rollover — consistently delivers meaningful savings. The gap between what businesses are paying and what’s available in the market is often wider than they realise.
A coordinated tender could be one of the most valuable changes you make this year. Contact Spinifex Energy for a free assessment.
