Many in the hospitality industry are subject to risks and exposures in their daily operations.
Restaurants must address those risks generally associated with their line of work. The operational risks associated with these facilities include slips and falls, which are a common problem both for customers and employees. Patrons who are allowed to drink too much alcohol, or minors who are unintentionally served alcohol can present problems with the law and may result in lawsuits.
In addition, workers may injure backs, cut fingers, or be burned by hot liquids. Many operational risks associated with restaurants can be controlled through sound such as risk management strategies, such as rigorous cleanliness practices, employee education on safety practices, and protective devices, and sprinkler systems for cooking equipment. Still, without a sound coverage plan from an albuquerque insurance agency all of your planning and hard work could be for naught.
Strategic risk is more complex
Strategic risks include management decisions regarding new products, and emerging competition and planning issues. These are areas that need a great deal of focus and a sound strategy to deal with issues arising from these areas. Any Risk to reputation can be associated with almost any peril or event that occurs.
Recent outbreaks of food-borne illnesses have devastated food suppliers and restaurant chains even when it has only affected one location. Proper cleanliness is critical, but restaurants will also need to develop plans to quickly address unexpected disruptions. Maintaining (or regaining) customer confidence requires careful planning and communication.
Risks involving growth and expansion
You may decide to open a new restaurant, but this decision requires researching local economics, demographics, and changing customer tastes. Only then can you implement a change in direction that may increase productivity. As the industry continues to grow, you’ll likely face increased competition. In an effort to attract new customers and maintain current customers, you may venture into entertainment and catering. Theme restaurants have really gained popularity in recent years.
Restaurants are also faced with general economic risks such as unemployment, inflation, and changing population demographics. Highway construction, natural disasters, and weather conditions can all affect a restaurant’s financial stability.
You should consider risk management practices along with any strategic goals but an Albuquerque insurance agency can help determine what coverage will protect you in any scenario.