Essential Risk Management Tips for Restaurant Owners

Every industry has its share of risks, as all of them are affected by one or more environmental and economic factors. For example, when suppliers experience shortages or production slowdowns, it can raise food prices, causing consumers to dine out less frequently.

The following are a few essential restaurant risk management tips for restaurant owners.

  1. Train Your Employees

    Caring for the health and safety of your restaurant employees is crucial these days, especially with the current shortage of personnel. Proper personnel training should be at the top of your checklist when it comes to employee-related concerns. The best way to ensure that your employees follow the company’s vision is through an orientation program that makes their job description clear. Employee training should cover multiple areas, including customer service and liabilities related to serving alcohol.

  2. Use Technology

    Installing security cameras helps deter criminals from attacking your physical assets. If your digital network is breached and your private data is compromised, your company may face several lawsuits at once. Cyber liability insurance pays for legal fees that might arise from cyber security breaches.

  3. Maintain Your Facilities

    A clean kitchen helps pass health inspections while ensuring a professional presentation. Make sure that the oven is regularly cleaned inside and out and that the knives are always kept in the same, safe place. Clearing out equipment that is not required can help eliminate unnecessary risks.

  4. Maintain Your Equipment

    You should inspect your restaurant equipment periodically to make sure everything is in proper working order. Certain issues must be addressed immediately, such as when a refrigerator malfunction, to prevent food spoilage. Also, make sure that the heating equipment is well maintained to avoid fire hazards.

  5. Stick to Health and Safety Codes

    Be aware of health and safety codes that affect your restaurant business, and make sure your staff practices them. Let your employees know that they must practice proper hygiene according to company policy. Also, make sure your facility is equipped with the right safety gear as required by OSHA.

  6. Obtain Proper License and Insurance

    Restaurant owners can face heavy fines if they don’t comply with state and local government requirements on licensing. Every restaurant needs a business license and a food service license. If your establishment serves alcohol, then you will need a liquor license as well. Delivery drivers need commercial auto licenses.

  7. Disclose Vital Information

    As many as 15 million Americans suffer from allergies, according to Food Allergy Research and Education (FARE). So it’s important to disclose to patrons if the food your restaurant serves contains allergens. This information, along with nutritional facts, should be printed on the menu.

  8. Stay Prepared for the Worst

    The pandemic has taught businesses of all kinds to prepare for forced closures. Part of what’s keeping many restaurants open is their delivery service. Buying business interruption insurance is the key to continue receiving income even if your business needs to be shut down temporarily.

    Since restaurant owners can be held liable in court for food poisoning, it’s essential to take proactive steps to avoid litigation. Investing in a restaurant insurance program reduces the chances of your business shutting down over one lawsuit.

Contact us at RMS Insurance Brokerage, LLC for more information on managing risks as a restaurant owner.

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