Project Description

Radiant Energy solutions for bars and restaurants

Radiant Energy Reduces Painful Rising Costs for Restaurants

Companies struggling financially often face additional fees and deposit requirements from energy suppliers. This case study recounts Radiant Energy’s restaurant energy solutions & aggressive negotiation on behalf of a restaurant owner facing increasing food costs during slow season for the restaurant.

Complex Financial Situations Find Relief Through Proactive Energy Management: For companies facing financial hurdles, continuing to provide goods and services to customers without interruption can be a challenge. The difficulties are often compounded by suppliers that charge organizations higher fees to recoup lost profits and minimize risk. In particular, without a third party negotiating on their behalf, companies in financial hardships often face escalating energy-related costs that can exacerbate an already fragile financial position.

SITUATION

With the recent recession and global economic breakdown at its peak, Radiant Energy’s client, a local restaurant chain, was facing these financial concerns. It was not long before the company’s individual restaurants began to feel the effects of these issues. For example, the natural gas supplier for the Florida restaurant wanted to increase its original 60-day deposit from $3,000 up to $8,000. Radiant Energy, the restaurant’s energy consultant, was able to provide restaurant energy solutions and use its market influence and knowledge to help its client deal with this critical issue.

LEADERSHIP

The restaurant was not in any position to negotiate with the supplier, and it felt that its hands were tied. Radiant emphasized to its client, that even in its current financial position, the restaurant could still leverage energy suppliers to create competition. Radiant Energy contacted another supplier that could possibly present a more competitive bid. The supplier responded quickly with an interest in participating; however, Radiant determined that this supplier’s initial bid was too high as well. Radiant aggressively negotiated with both suppliers to reduce the deposit fee.

RESULTS

Radiant negotiated terms resulting in a cash deposit $1,000 less than the incumbent supplier’s initial offering. Radiant Energy not only freed up capital for the restaurant owner, but also allowed it to remain operational as it navigated through the tumultuous economy.