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These issues have translated to the industry’s insurers as well – causing even more headaches for restaurant owners. The restaurant insurance market has seen rising costs to insure and as a result, carriers have come and gone from the market. So, how can restaurant owners and operators reduce these risks?
While maybe less cute than National Pet Day (4/11) and less tasty than National Cheeseburger Day (9/18), National Insurance Day on June 28 encourages businesses to shop around for the BEST insurance partner to ensure financial success and safety for all involved. Food service businesses, such as caterers, face additional risks.
With change in restaurant management so dynamic, industry experts say that now is a good time to review and even revamp restaurant insurance policies. “Along with making changes to their menu offerings and business models, many restaurateurs are also reassessing their insurance needs.” Food Delivery Issues.
While corporate travel is expected to pick up, helping offset a predicted slowdown in leisure spending, the broader hospitality sector must grapple with economic and operational risks. By mid-2024, 82 percent of food and beverage operators were still actively recruiting, with chefs and cooks comprising 30 percent of open roles.
Traditional sit-down restaurants and mobile food businesses have uniquely different needs when it comes to insurance. While there is some overlap in coverage needs, it’s important to understand the differences when it comes to insuring your business. Traditional Sit-Down Restaurant Insurance Needs. Property Insurance.
Serving alcohol is a fundamental part of many restaurant operations, but it also presents significant liability risks. At All Solutions Insurance, we saw a recent claim in which a restaurant faced a multi-million-dollar lawsuit after over-serving a guest who later caused a fatal car accident.
A new year is creeping up on us again, bringing fresh opportunities—and challenges—for restaurant operators. Simplify Health Insurance Open Enrollment Health insurance is one of the most valuable benefits you offer, so make open enrollment a central, streamlined year-end activity.
This goes to show that restaurant staff pay, which makes up about a third of restaurant operating costs , is one of the most important facets of running a restaurant. The former are entitled to benefits such as minimum wage, overtime pay and workers’ compensation insurance.
One of operators most difficult challenges is balancing restaurant operating costs without compromising the food, service, and customer experience that makes your restaurant unique. The Three Types of Restaurant Operating Costs Before you can start paring down expenses, you have to understand what youre actually spending and why.
These include: Food Costs Labor Costs Occupancy Costs Operating Costs Marketing and Promotions Expenses Every successful restaurant owner knows that tracking these isnt just a bookkeeping exercise; its how you spot opportunities to save money, collect data for better decision making, and run more efficiently.
In addition, most restaurants should have business interruption insurance, and that insurance may provide some relief from economic pain. Business interruption insurance covers the loss of income that a business suffers after a disaster. Gather Your Complete Insurance Policy. ” That’s just not true.
Society Insurance outlines five reasons why every business owner should have an effective video surveillance system. When potential criminals see that your business is equipped with cameras, they are less likely to commit vandalism, shoplifting, or other illegal activities, knowing there's a higher chance of being caught.
How do restaurant operators find efficiencies to minimize costs without degrading quality or service? One desirable option is to leverage low-power IoT solutions to deliver energy and maintenance efficiencies and reduce operational expenses. Each year, insurers pay out $2.5 billion for water damage claims. Staying Competitive.
In this article, youll learn: Why every operator has to monitor their restaurant profit margins Why it can be so challenging to increase your profit margins How to improve your margin numbers Lets dig into why margins, not just sales, make or break a restaurant business. Your cost of goods sold (ingredients, beverages, packaging, etc.)
Competitive Compensation Paying fair wages and providing opportunities for raises, bonuses, or profit-sharing can show thatyouvalueyouremployees’ contributionsand want them to feel financially secure.There are publicly available resources to help you understand whata fair wage for your business would be.
Restaurants have faced labor shortages, supply and equipment shortages, and climbing food prices, with no past playbook on how to navigate the crisis. Even as COVID-19 has gotten under more control, restaurant operators are still struggling with the impact it has had on the industry and on their businesses. Food Shortage.
With the laundry list of everything bar and restaurant owners need to handle on a daily basis, proper insurance coverage should be top priority. Proper communication with the insurance agent about all the ins and outs of the restaurant can help set up the policy right from the get-go.
With operational costs sky high and profit margins razor thin (ranging on average from three to nine percent ), restaurant operators are continually looking to keep costs down without degrading quality or service. Lockdowns and restrictions cut into hours of operation and profits. It’s possible by looking at the true ROI.
Let us pass on the knowledge and expertise that we have gained in our 100+ years in the insurance business, so you can take a few things off your plate – and gain peace of mind. Society Insurance bears no responsibility for the accuracy or content of linked or cited material.
Restaurant insurance is complicated. Just as owners have to play many roles in management, marketing, and menus, their insurance has to protect their finances, patrons, and employees. And who has the time to read a 100-page insurance policy? These are often excluded from standard policies and be potentially costly.
. – Noah Glass, Founder & CEO of Olo The pandemic was a transformative period for the restaurant industry, leading to significant changes in how both restaurants and consumers operate. Technology continues to transform restaurant operations. The workforce also experienced a major reset.
Data from the National Restaurant Association’s 2023 State of the Restaurant Industry report revealed that nearly three in four operators were focused on sustaining growth. Things began to change for the restaurant industry in 2023 as the script flipped from cutbacks to a growth mindset.
Although delivery drivers are being asked to take additional precautions to protect themselves and others, restaurant operators may not be aware that they may be liable for bodily injury or property damage arising from motor vehicle accidents while delivery drivers are operating personal vehicles for business use.
The past year has been a challenge for small businesses and no industry has been impacted quite like small hospitality operations. Whether customers are eating inside or out, your roof protects equipment vital to keeping the doors open. Yet, as we settle into one new norm, in many parts of the country spring severe weather now looms.
In that case, there may not be any insurance outside the driver’s personal auto insurance. If you’re contracting with a third-party delivery service, let your insurance agent know. Your agent can review the contract to determine what types of insurance you may need to protect your restaurant.
What can restaurant operators learn from this experience? What should restaurant operators take away from this in regard to how they should handle employee and customer data moving forward? Restaurants should consider vetting third-party vendors to performing these functions, and ensure those vendors are properly insured.
With every online order, millions of customers are entrusting restaurant owner/operators with their most essential information. However, thanks to the explosion of online ordering, owner/operators are left managing massive data sets — without any experience in doing so. Without it, just one breach could spell the end.
I believe that is true, and there has never been a more important time to track each and every penny coming into your operation. My next two columns will tell you how to correctly produce your income statement, and then how you can use it to improve your operation. Operating Costs. Cost of Goods (COGS).
Going forward, while negotiating new leases, restaurant tenants should consider adding specific provisions that may potentially lessen the effect of governmental closure orders, pandemics and similar events on their operations. Caps on Operating Costs. Premises Delivery Date. Force Majeure. Gross Sales Termination Right.
Many operators struggle with low profit margins, and it’s easy to fall into this trap. Fixed costs Fixed costs are expenses that remain constant, including rent, insurance, and utilities. If transferring isn’t an option, you can try to reduce other fixed costs like insurance premiums.
But the lingering effects of the pandemic continue to make this a challenging time for our industry as ongoing staffing issues and supply chain disruptions, in many cases, lead to reduced menus and shorter hours of operation. So what can restaurant operators do to add to their bottom line, create cost savings and generate brand awareness?
Not only do you have to manage many costs including, labor, equipment, and food—but you have to do it while dealing with inevitable price increases. The upcoming section details these costs across two categories: restaurant startup costs and operating costs. Indeed, controlling restaurant costs is one of your biggest challenges.
Ahead of the holiday, Society Insurance, which provides coverage to the hospitality industry, has put together a list of best safety practices for restaurants with deep fryers: 1. Regular maintenance and cleaning is an important safety factor for any kitchen equipment and a commercial fryer is no exception to this rule.
Depending on what kind of hardware and POS system a restaurant is using, each delivery app may require a unique and intensive process to integrate it with current operations. The point isn’t just to keep a higher percentage but also to curtail operational expenses. The critical factor, operators should know, is scalability.
Over the past few months, many restaurants made difficult decisions to reduce their workforce and apply a strict delivery and takeout format or pause operations entirely due to COVID-19. Your restaurant’s plan for welcoming employees back should follow objective criteria, focusing only on the abilities necessary for operations.
Conduct regular inspections of equipment to prevent moisture from pooling up and creating a hazard. Stock and Utilize Proper Safety Equipment Make sure your business is supplied with signage and barriers to be deployed in the event of a spill. Consider rescheduling this work to before or after normal hours of operation.
We are operating in an industry wherein our employees are bouncing company to company with no dedication to the employers as they go. There are a few reasons: New employees often lack training; ill-equipped and inexperienced workers sustain more injuries trying to use machinery or tools with which they are not familiar.
As the impact of the pandemic continues, restaurants face constant and evolving operational challenges. At the end of 2021, four out of five restaurants reported facing a staffing shortage due to reduced operating hours and dining capacity.
Identify and communicate operational priorities. Don’t forget to secure their certificates of insurance, hold-harmless agreements and contracts. Designate a manager, equipped with PPE, to take temperatures at a set location in the restaurant. What are critical staffing levels and functions, and when?
But reopening your restaurant isn’t as simple as flipping your ‘open’ sign around (we wish), and there’s a lot to consider from an operational standpoint before the big day. Social distancing and protective equipment ?? Ensuring your team has the right equipment to keep everyone safe should be a big part of your reopening plan.
Look deeply into these businesses and the people who own and operate them and you will see an unrelenting effort towards achieving excellence in design, product quality, efficiency, value, and service. What piece of equipment will be most successful in reaching your goals of deliciousness? It is your job to SWEAT THE SMALL STUFF.
You will also be able to implement changes and install new equipment much faster than would be possible if you needed to wait for a landlord’s permission. Hours of Operation. This can include extending a building to seat more covers, or opening an outside space (in adherence with local noise restrictions, of course). Lower Risk.
60 percent of restaurant operators say that offering delivery has generated incremental sales. For example, if using in-house staff, you have the ability to control your entire brand experience for delivery; however, you also have to keep in mind the hiring and management of drivers, insurance, staffing levels, payment, etc.
Society Insurance recommends contacting your local “call before you dig” hotline before driving stakes in the ground to prevent any utility line damage. Proprietors that own and operate outdoor heating units must ensure that all employees are educated on how to shut off the fuel supply in the event of an emergency.
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