You have to spend money to make money. The adage, while true, takes on a new light when discussed in the foodservice industry. Restaurants operate on small margins and, pre-pandemic, were often reluctant to adopt new technologies. Costs continue rising, and operators are being asked to invest their profits in more ways than ever. However, many “savings” programs present time-consuming barriers that prevent operators from realizing the promised savings and profits.
The foodservice industry has bragging rights in the U.S. It is the most diverse industry and the second-largest private employer in the country, employing approximately 15.5 million people, according to the U.S. Census Bureau. It is also one of the most energy intensive.
California Foodservice Instant Rebates provides California foodservice operators an opportunity to decrease costs in multiple ways—from reducing the upfront cost of high-efficiency natural gas and electric equipment to lowering monthly utility bills throughout the equipment’s lifetime.
Immediate Rebate at POS
Operators often hesitate when they hear “rebate program.” These programs can be complicated and turn into more work for operators. Traditional rebate programs can take weeks or even months. California Foodservice Instant Rebates is different.
“There’s no waiting, there’s no paperwork,” says Jeff Wade, senior manager on the California Foodservice Instant Rebate Program administered by Energy Solutions. “Operators simply select an item at a participating dealer and receive that instant rebate at the point of sale.”
When kitchen equipment needs to be replaced, kitchens are fully remodeled, or restaurants are being built, upfront savings like this can mean thousands in savings. Multiplied over many pieces of equipment, the savings can reach into the tens of thousands.
Beyond just dollar amounts, the program reduces the administrative burden on operators, allowing them to focus on what matters most: running a successful kitchen.
Operators Win by Cutting Opening Costs
“Franchisees or restaurant operators who are just starting their kitchen or getting it up and running can really benefit from this,” Wade says.
Opening a new restaurant or franchise location is a major financial undertaking. The average cost to open a single franchise location can range from $250,000–$2 million, depending on the brand and size of the facility. A significant portion of that goes toward outfitting a commercial kitchen with equipment, which can cost anywhere from $50,000–$150,000. With energy-efficient models often priced higher than standard equipment, operators are frequently forced to make tradeoffs between long-term savings and upfront affordability.
The program covers a wide array of equipment—fryers, griddles, ovens, refrigerators, freezers, and steamers—all chosen for their high energy efficiency. “All these products are selected based on their energy performance. They use less power or gas than standard models,” Wade says. That means operators not only save upfront through the rebate but also benefit from long term reductions in energy bills.
The financial impact is significant. Wade gives the example of an electric steamer: “The rebate on an electric steamer is $2,000. The annual energy savings are $4,573. The lifetime savings can be $50,000.” Operators can calculate their own savings here.
According to the U.S. Department of Energy, commercial kitchens consume 2.5 times more energy per square foot than other commercial spaces. That means switching to high-efficiency appliances is not just smart—it’s essential for sustainability and cost control.
For operators those savings can multiply rapidly across dozens—or even hundreds—of locations. A chain with ten locations could save more than $500,000 in lifetime energy costs by upgrading steamers alone.
Importantly, the program removes the friction that often deters operators from seeking out energy rebates in the first place. “Operators definitely worry that there’ll be a complex application process or delays in receiving rebates, but we’ve removed these barriers over the years,” Wade says.
Even better, the rebate doesn’t only apply to cash-and-carry purchases. Operators planning large-scale kitchen builds or remodels can work with participating dealers who incorporate the rebate into upfront bids, further reducing total project costs.
Dealers, too, are evolving as a result. “It actually transformed the market in California—some dealers stopped stocking inefficient fryers because everyone was buying the efficient models thanks to the rebate,” Wade says. That shift helps ensure operators get modern, energy-saving equipment by default.
For operators in California’s investor-owned utility territories—Southern California Gas Company (SoCalGas®), Pacific Gas and Electric Company (PG&E®), Southern California Edison Company (SCE®), and San Diego Gas & Electric Company (SDG&E®)—these savings are readily available. And the benefits extend beyond state lines. “We also have instant rebate programs in 12 other states,” Wade says. “If you’re a national chain or do business across the U.S., we can work closely to maximize benefits.”
The California Foodservice Instant Rebate Program is more than just a discount—it’s a strategic advantage.
“Energy efficiency doesn’t have to be complicated or expensive,” Wade says. “With this program, operators can make smarter equipment choices that are good for their business and the planet.”
Visit here for more information on the California Foodservice Instant Rebate program.
