Keys to Successful Restaurant Operations

As one of the largest private-sector employers in the U.S., restaurants are big business. Americans enjoy eating out whether to save time and effort at a fast-food restaurant or to experience the offerings of a high-end bistro. Regardless of the type or scope of the restaurant operation, all require the same kind of controls. Who prepares the food? How is it prepared? What is the experience level of the person preparing the food? Is the preparer a short-order cook or a graduate of a culinary institute? According to safety and risk control expert, Patrick Hill, the key to a successful restaurant, from the loss control perspective, is good sanitation and good quality-control practices. 1 Restaurant operators face a variety of loss exposures, including fire and theft, business interruption, and liability to customers who are injured on the premises or will become ill due to food poisoning or contamination. One area that restaurant owners should not view lightly is that of the insurance. Insurance needs that restaurant operations should carefully consider include the following: • Property Insurance — provides protection for building and contents against fire, windstorm, hail, explosion and other perils, and, through additional separate coverage, may insure for loss by flood or earthquake. • Business Interruption — should a covered loss cause the restaurant to suspend operations, this insurance will help recover some of the lost revenue from the suspension of operations until repairs are made. • General Liability — covers claims by customers who are injured on the premises typically from a slip, trip, or fall on the premises. • Products Liability — protects the restaurant for injuries that arise out of the consumption of food. Food poisoning is an example. • Liquor Liability — protects the restaurant if a customer drinks excessively and while driving injures someone in an accident due to impaired driving from alcohol consumption. • Automobile Liability — if the restaurant owns vehicles, say for delivery or if it provides a valet service, it will need auto liability insurance. • Workers Compensation — depending on the number of employees, the restaurant may be required to purchase workers compensation insurance which will pay medical claims of employees injured at work as well as a percentage of their lost wages. Keys to Successful Restaurant Operations — Good Sanitation/Quality Control Practices and Sufficient Insurance ________________________________________________________________ 1 Patrick J. Hill, Defining Risk Assessment (Yarmouth, Maine 2006 Alexander & Schmidt), p. 102. E01-1007 Sheila E. Salvatore, Editor | | 126 Business Park Drive | Utica, NY 13502 Copyright © 2018 Rising Phoenix Holdings Corporation.All Rights Reserved.Adjusters International and theAI logo are registered trademarks of Rising Phoenix Holdings Corporation. Insights forYour Industry ® is published as a public service byAdjusters International, Inc. It is provided for general information and is not intended to replace professional insurance, legal and/or financial advice for specific cases. 800.382.2468 | ®