Attention all Restaurant Owners and Managers:
Increase Your Restaurant’s Profitability with a Good Prevention Plan
Running a successful restaurant is a balancing act of hiring the right employees, keeping a consistent supply of quality, fresh food, and drawing a steady crowd of hungry customers. Aside from the obvious, there are additional items you can adjust in your operations to help increase your profits.
Review Your Fixed Expenses
It may seem that you have less control over these items, but it may be more important to your bottom line than you think. In the arena of litigation, risk management, safety, and insurance expenses, you have a lot of control and your diligence and actions can make the difference between a profitable restaurant and a bankrupt one.
Beware the Salad Bar
While many customers may compliment the variety and freshness of the items in your salad bar, you should be aware that your salad bar is a huge liability. Thousands of slip and fall accidents occur every year because of salad bars and some result in lawsuits and higher insurance premiums.
Slip and fall accidents are the number one cause of accidents in restaurants and the number two cause of workers’ compensation liability claims. Most slip and fall accidents are easily preventable when proper procedures are in place.
If you don’t want a customer to take a header in your establishment and sue you for their injuries, reconsider the salad bar. If it must stay, implement strict employee procedures to monitor the area and keep the floors around it debris free and dry at all times. Install non-slip mats or surfaces. Those tomato slices may look beautiful on a plate, but when a customer slips on one and sues, you are the one who will be seeing red.
Employee Safety Training Pays For Itself
According to the Occupational Safety and Health Administration (OSHA), “for every $1 spent in safety programs, businesses can save between $4 to $6 from costs associated with injuries and fatalities.”
Because the cost of your workers’ compensation rate is directly affected by the number and severity of claims, a good safety program is the first step in lowering the cost of your workers compensation premium. One out of 20 employment related injuries occur at eating and drinking establishments, and the most common injuries are cuts, burns, strains, and eye injuries.
Make sure all employees are trained in the proper safety measures of handling knives and power equipment. Make sure equipment is in good working order and properly guarded.
Save on Restaurant Insurance with Fire Prevention Measures
There are thousands of restaurant fires each year, and cooking equipment is the cause of half of all fires in restaurants. Restaurant fires are particularly dangerous because the number of patrons and workers who are exposed to potential fire danger.
Insurance companies are well aware of the risk fire imposes in restaurants, but did you know that you will get better rates if you comply with certain safety measures? A sprinkler system will help decrease the amount you pay for fire insurance as well as reduce damage when it’s really needed. The average loss for a fire with a sprinkler system was $6,500, compared to $18,800 for those without a automatic suppression system, according to NFPA Fire Analysis and Research.
Maintain a regular cleaning and maintenance schedule in your kitchen. Some carriers will give you credit for regular maintenance, cleaning and/or removing grease from your hoods, flues and chimneys because it helps to prevent fires.
Additionally, when considering fire safety, keep fire extinguishers charged and accessible, and make sure employees are trained how to use them.
Your Location is a Factor in Saving as Well as Making Money
Anyone who has studied business understands how important location is to the success of a business, but did you know your neighbors have an influence on your insurance premium? If your restaurant is near a business with potential hazards, such as a woodworking or chemical facility, your insurance will be higher than if you have general offices nearby. Choose your location wisely.
The Moral of the Story
Finding ways to save on your fixed expenses can help increase your bottom line. A good prevention plan that includes safety measures can not only reduce the cost of your insurance premium, it can also prevent problems and increase employee morale. Implement a good prevention plan that includes keeping your establishment clean and tidy, training employees in safety, and keeping your fire protection up to code, you are on the way to an accident-free workplace with low restaurant insurance rates!
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Invensure offers specialty insurance and safety services for restaurants.
Call (800) 331-4700 to sign up or learn more about the restaurant insurance program.