risk assessment

business

Restaurant

We understand that great food is your passion, and no two restaurants, diners, cafés, delis or burrito wagons are the same. We’ve listed some common risks food service businesses face below. For truly personalized business solutions, contact your local, independent Allied agent for more details. 

High risk

Product liability

Your product is the quality of the experience you provide, which means food-related businesses may be at risk for liability expenses if food makes someone sick or a diner has a bad experience.

• Start a quality control policy to watch recalls, expiration dates, food temperature, and sanitation
• Display ingredients to avoid allergic reactions to certain foods
• Stop insect or rodent borne disease with monthly pest control services
• Remind employees to wash their hands after coming in from outside, using the bathroom, or handling contaminated foods
• Keep hot foods hot (over 140 degrees) and cold foods cold (under 41 degrees)
• Display contact information on your receipts, so that customers can call you if needed

The Food and Drug Administration keeps a list of FDA recalls, market withdrawals and safety alerts to help you stay on top of the latest information.

Workers’ compensation

Kitchens can be dangerous, even for careful workers. Flames, hot oil, knives, heavy dishes, glass and soap can all be potential hazards. Accidents aren’t the only workers’ compensation risk, though. Repetitive stress or gradual illnesses from exposures can also produce a claim.

• Mark walking paths in and out of doors, around corners, or around the kitchen to avoid accidents
• Unplug or disconnect kitchen appliances when cleaning them
• Don’t remove or disable safety guards that seem to “get in the way”
• Train employees on tools and equipment, especially hot or sharp objects
• Learn about ergonomics and warning signs of risk factors, including awkward posture, high hand force, repetitive motion, and heavy lifting
• Require personal protective equipment like hot pads, gloves, hats and sturdy footwear
• Establish a floor cleaning method to safely handle slippery spills
• Use rubber mats in areas with wet floors, they also help cushion shock on joints
• Choose a safety officer to help with safety training and to watch out for hazards

Workers’ Compensation laws are different for each state. Check the US Department of Labor to find specific information about yours.

The Occupational Health and Safety Administration (OSHA) has posted restaurant safety for teen workers, which applies to your business even if you don’t hire teens.

General liability

It’s easy to see why you love your work. But, just opening your doors for business may open you to liability. Any sort of harm to visitors on your premises can hurt your bottom line. Keep it safe by planning ahead, staying alert, and having a policy for damage control.

• Warn customers of hot beverages or plates
• Limit visitors in the kitchen area without an escort
• Display contact information on receipts
• Make separate in and out doors to prevent traffic flow accidents
• Train employees to wrap hot take-out containers to prevent burns
• Carefully clean slippery spills and keep your parking lot clear, as well

The Food and Drug Administration monitors edible goods. Also, be sure you read the advice given by the National Institute of Health to protect patrons.  

Fire

Restaurants and cafés can catch and spread fire quickly, especially if you’re grilling or frying. So extra planning around fire safety can help. Even after the flames are out, you might find that smoke or water may have damaged your property. Your fire risk varies with how much and what type of cooking you do, but keep a watchful eye on all potential hazards, to stay safer.

• Keep both class K (for grease fires) and ABC fire extinguishers handy
• Use standard shut down procedures for appliances at the end of the day
• Don’t store flammable materials near motorized equipment
• Check for frayed or loose cords, plugs and wires that might spark
• Test smoke detectors and fire alarms at least twice per year
• Make sure your fire suppression systems is UL 300 listed and serviced per NFPA guidelines
• Empty grease traps and clean hoods on a regular basis
• Have fire drills, and train employees to watch for potential hazards

Be sure to visit the National Restaurant Association website to get fire prevention tips. For more information on fire safety at work and at home, visit the National Fire Protection Agency (NFPA) or FireSafety.gov.

Medium risk

Equipment failure

Modern machinery helps you work more efficiently, but you could probably get by the old-fashioned way if you had to, with a spatula and your imagination. Your business would hurt if your equipment were to break down for a long time. So, plan now for what you might need in an outage, before you’re caught off guard with possible spoilage.

• Schedule checks on major equipment (ovens, freezers, HVAC)
• Prepare for breakdowns by finding equipment rental companies
• Come up with a plan for working without certain machines
• Keep warranty and purchase or lease information organized
• Buy a back-up generator for electricity outages
• Keep just as many perishables on hand as you need, to cut replacement costs if the cooler breaks

If you’re wondering whether your kitchen meets industry standards for technology and efficiency, stop by the Food Service Technology Center (FSTC).

The energy efficiency experts at EnergyStar have information about reducing energy needs, so you can keep the business running as long as possible during a blackout.

Crime/theft

Eateries are sometimes tempting for thieves. You might have cash on hand, and they may think your work duties are distracting, and some restaurants have poor security. Don’t leave your assets vulnerable. Make sure your business is as unattractive as possible to criminals.

• Get a safe and protect the key/combination
• Train employees on safe money handling
• Keep your building well lit, inside and out
• Make sure delivery doors are locked even during business hours
• Set up internal controls to deter employee theft
• No matter what, dishonest people can find ways to steal. If you suspect theft, call the police. Don't play detective or try to solve the crime, and don’t jump to conclusions. False accusations could result in serious civil liability

The National Restaurant Association has more on restaurant crime, and the National Crime Prevention Council has tips for reducing all types of crime, including theft and violence prevention for homes and for businesses.

Low risk

Auto/fleet

If you make deliveries or run company errands in a vehicle, you need to practice fleet safety. Most personal auto insurance doesn’t apply to accidents that happen on business time. Be sure you’re covered, in case of emergency. 

• Pack foods and liquids securely so they don’t distract the driver
• If you offer delivery, allow time for traffic or finding a location
• Give maps to delivery drivers, and make sure they review directions
• Watch the weather, don’t deliver when conditions are unsafe for driving
• Require all employees to wear safety belts
• Provide a cell phone in case drivers need to contact you, but be sure to remind them to pull over in a safe location before they call
• Don’t put your keys in the hands of an unsafe driver. Check the driving records of anyone who uses company vehicles

For more on driving safely, visit the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety.

Professional liability

If you instruct or consult other cooks, you may run a risk of professional liability. If you don’t, that doesn’t mean you’re totally protected. You may be held responsible for anyone who prepares or serves your food.

• Train all employees on your liquor control policy
• Do background checks on employees who might work around children
• Choose a quality control officer or team to look for possible risks

The Joint Institute for Food Safety and Applied Nutrition explains common food risks. Get additional business tips from Restaurant Startup and Growth Magazine online.

Data loss

To keep up with competition, inventory and customers, you probably use computers. If you have a website, you use them even more. So, you know that when computers have problems, business suffers. With a little planning, you can work around occasional system failures.

• Keep paper copies of electronic records and update once a month
• Backup computer files daily or weekly on a disk and store offsite
• Install a UPS (uninterruptible power supply) to give you time to make a clean shut down during power surges or blackouts
• Create a recovery kit, including system disks, registration, manuals and a recent backup
• Use and update anti-virus software
• Train everyone on startup, data entry and shutdown
• If you have questions, contact a technical support person. Most computer retailers have contact information for reliable technical assistance if you need it

Learn more about protecting yourself from internet threats by visiting the Federal Trade Commission’s Information Security website.

For even more information, and to keep posted on the latest tips and trends, visit:

• Occupational Health and Safety Administration (OSHA)
• National Safety Council
• Institute for Business and Home Safety
• National Institute for Occupational Safety and Health
• US Department of Homeland Security

The information contained herein is intended to assist you in making decisions that may reduce your risk of loss, but is not intended as an inclusive list of all risks. The information contained in this publication was obtained from sources believed to be reliable. Nationwide Mutual Insurance Company and its employees make no guarantee of results, and assume no liability in connection with the safety and loss control suggestions or information contained herein. Furthermore, it cannot be assumed that every acceptable safety or loss control method is contained in this publication, or that unusual circumstances may not require additional methods. The maintenance of safe premises, operations, and equipment is your legal responsibility. Nationwide cannot and does not guarantee that any of the advice is in compliance with your specific state laws.