While it is always good to have a crisis plan, the COVID-19 crisis we are witnessing gave the restaurant owners the heaviest blow ever
That’s why we’ve put together a list of information, tips and tools that can be helpful to restaurant owners in surviving the COVID crisis but also useful for the time to come.
It is impossible to run any business without risk. However, unexpected situations in the restaurant business are just around every corner, unfortunately the COVID crisis is a proof. In order for your business to weather this storm, it is important to have a solid crisis plan. Although we are already deeply immersed in the crisis, it is still not too late for such a plan. The main goal here is resilience, which means the ability to get to your feet after a disaster. Getting back in the saddle after being knocked off your horse is much easier if you have a plan ready. The statistics are relentless. According to them, only 40% of businesses affected by the disaster resume operations after the crisis. It is not so strange when it is known that as many as 75% of small businesses do not have a crisis plan prepared. And it could be a key factor between failure and resilience.
“Unexpected happens, otherwise, Murphy would not have had his own law. The question is not whether, but when such a thing will happen. So, without raising too much alarm, be prepared. ” - Darryl Benjamin
What disasters can befall your restaurant? Earthquake, flood, fire, pandemic ... and these are just natural disasters. Disasters caused by human factors include loss of electricity, water, gas, food shortages, water pollution, foodborne illness, accidents, computer system crashes, data theft, criminal acts (blackmail, robbery, fraud, sabotage), bomb threats, violent protests, and even terrorism. Many experts agree that such catastrophic events will be worse and more frequent. And here are the facts: crises come without notice. Preparation is the key to resilience and flexibility that are necessary to get back in shape after a crisis.
Step 1: Crisis planning and preparation
The guiding principle of restaurant crisis management is safety. The goals of your restaurant's crisis strategy should be: * Reduce / eliminate negative effects on your business (turnover, sales, recovery costs, earnings) * Preserve / improve your reputation with guests and the public * Preserve / improve your reputation with investors, employees and business partners * Return to normal business as soon as possible * Limit the ability of your competition to profit from the crisis Stand out from the competition with fast, thoughtful, strategically planned action. If a crisis occurs and you are not focused, there is a good chance that you have already lost the battle.
A detailed restaurant crisis plan includes:
Evacuation plan
Fire plan
Occupational safety program
Security procedures
Insurance policy
Financing and purchasing procedures
Procedures for closing premises and buildings
Employee Handbook
Plans for handling hazardous materials
Personnel service plan
Communication and media procedures
Data storage and recovery plan
Step 2: Check your insurance policy
When it comes to insurance, the biggest threat to you is what you don’t know. Not knowing what to include and what to leave off the policy, what is realistic to happen, for which the chances are minimal - that part is pure gambling. Only the stakes here are very high. It's about your business. Once a catastrophic situation has already occurred it is too late to buy or modify an insurance policy. In short - you are cooked. In addition, most general policies do not include recovery costs. What to look out for with an insurance policy? Is your building covered? Equipment? Are there limitations, exceptions? Are wind and water damage separated in the policy? Are there areas that are not sufficiently covered? You ask your agent direct and basic questions: Would we survive this event? Are we adequately covered? Is there anything we should do differently? Business interruption insurance can cover some business expenses if your restaurant is forced to stay closed for an extended period of time. No matter which policy you choose, make sure all business documentation (at least copies) is safe, out of the establishment. You must be able to access these documents quickly in the event of an emergency. Finally, arrange regular audits of your policy with the agent. You could also investigate the performance of your agent: what are his results, how much experience does he have in covering crisis situations near you?
Step 3: Make sure your inventory is up to date and complete
Regularly documenting and updating inventory is l + key to the resilience of your business. How could you get back on your feet if you don’t know how things stood before? Maintain an up-to-date, written inventory of food, supplies, equipment, technology and furniture. The written word is even stronger when it is accompanied by photographs. Record the entrance, the stops, the walls. This will help speed up the insurance payment process.
Step 4: Form a crisis management team
Forming a crisis management team is one of the smartest moves you can make. You can't do everything alone! Involve the employees you trust the most, someone from the marketing and / or PR department, the human resources department and, if possible, your lawyer. Identify people who will be in charge of guiding others to a safe place. Designate one person to be the spokesperson - a person who will make sure all communication is consistent and late. The mantra of crisis management in restaurants is - "Safety first". One of the responsibilities of your team is the safety of guests, staff and anyone in your area. First-aid classes and certifications should be part of managers’ preparation. It is extremely important that you ensure an atmosphere of trust within your team as you share crisis tasks. The emergency plan should be shared with everyone, even the occasional staff. Give your team the task of putting together a simple plan that will be a beacon in the midst of chaos. Emergency contacts must be a mandatory part of that plan, and the plan must be visible, quick and easily accessible.
Step 5: Create a communication plan
Your restaurant's communication plan is your lifeline. It should be comprehensive, involving guests, the public, employees, investors, suppliers and business partners. The best option is for the restaurant owner to be in charge of coordinating all communication / media activities. Provide your staff with key clues if they are the target of inquiries, but ask them to refrain from talking or posting anything about the crisis. Ask them to redirect all crisis inquiries to your crisis management team. Step 6: Create a risk assessment plan Anticipate every possible type of catastrophe and your initial response to it. Assess how much risk there is to your local in relation to each of the disasters. Whether it involves a power outage, a power outage, a clogged sewer, a flood, a fire, an earthquake, or some other disaster, make plans for each of them. Step 7: Make a plan for food and water How will you minimize food loss? Consider using a refrigerator or warehouse to preserve food during a crisis. Use fresh foods first, then refrigerated products, and then frozen. It is possible that during the crisis the water will be limited, keep a suitable supply in the local. Create a crisis menu that requires less water consumption during preparation. Remember to consult with other restaurant owners to hear how they are coping with the situation.
Step 8: Make an emergency kit
When infrastructure fails, people get hurt. Your crisis package should include an auxiliary generator, flashlights, blankets, batteries, non-perishable and dry food, a first aid kit, tools to shut down installations. Step 9: Be prepared for supply interruptions During the disaster, product delivery will be interrupted for about a week. And when it is re-established, it will certainly be limited by supply. Your crisis management plan is a reference point that will determine how you will respond in an emergency. The plan contains all of the above in the form of a printed and digital document. That document provides leadership, direction, and structure — three things that are sorely lacking during the confusion and chaos of disaster. Keep it at your fingertips to save time in a crisis.
It’s also smart 1. Copy copies, have a back up for everything Important data and documentation, such as the salary archive, should be kept copied outside the premises. Auxiliary generators can help you keep the bar open, with lighting and provide comfort and warmth to tenants, guests and staff. Make sure you know how to operate a generator - there are too many tragic stories about carbon monoxide poisoning 2. Make a rehearsal To test your preparedness, review all scenarios with your crisis team. Is everything updated? Is your evacuation plan still viable? Has anything changed since the last review of the plans? Conduct a rehearsal once a year to test the crisis management plan and team.
Crisis response:
Full transparency. Tell the truth! You will only prevent a PR disaster if you place all the cards on the table. If, during a crisis situation, you or a member of your team provides regular information and news on your social networks, you will prevent others from making a story out of you. Leave the news alone. Unlike reactive responses to the crisis, those proactins do not wait for the local media to reveal what they think the facts are. It is therefore crucial that your crisis team delivers information regularly and honestly. This means acknowledging if you made a mistake, and even if you or your bar will show it in a negative light. Because, rest assured, the truth will come out at some point. Telling your own story has two advantages: you control your story and you don’t have to play catch or defend yourself. What do guests and the public need to know? Let them know that you are renovating the bar, let them know the news during recovery. Neighbors will certainly want to support you, so let them know when you plan to reopen. Take the opportunity to get closer to the local community. Crisis situations upset your staff as much as your guests. Stay calm, talk directly with guests, and make sure your staff is on the same frequency about what information they can share.
Restrict access to your social media profiles in a crisis you want to control which messages go public, so it is crucial to limit the number of people with access (passwords) to your profiles. The message you want to convey to the public must be unique, consistent and in line with your local crisis plan. The fact that you don’t have to correct wrong or confusing messages will greatly save you valuable time in trouble.
RECOVERY The storm has passed and now is the time to gather the remains. Your goal is to recover as quickly and painlessly as possible. As scary as it sounds, the shortest way out of a problem is to go straight through the problem. Contact your suppliers: most of them have an accident clause under which they can temporarily suspend your obligations for the duration of a national disaster Hire a cleaning and restoration service. Arrange all necessary inspection visits to ensure safety in your premises after an accident. Have experts inspect all of your equipment to make sure it is safe to use. If necessary, make a plan for new, and removal and removal of damaged and destroyed equipment, parts of the heating system, cooling and all other installations. To-do recovery list Determine if it is needed (not required by all disasters) Make a comparison of KPIs (Key Performace Indicators) before and after the crisis, to determine the necessary modifications. If modifications are needed, define the RECOVERY OBJECTIVE as any other major project
goal (final result)
owner
team members (tasks and responsibilities)
time frame
data collection and analysis
processes and protocols that ensure performance
metrics (how you measure success)
Recovery after a disaster can be just as difficult as the trouble itself. This almost always involves a lot of time spent with your insurance agent. It is important to stay consistent with your restaurant’s crisis plan and keep guests ’attention while the restaurant is closed. In most cases, it takes about two weeks. If the damage to the building is significant, it will last significantly longer. Contact the landlord and insurance company first. Before rushing with cleaning, the insurer must assess the damage. Meet the landlord and all the financial institutions with which you do business with the situation, they will probably meet you until you get back on your feet. There are four things guests expect during a crisis. The first is complete transparency. Honesty without embellishment. Second, the updates are noteworthy. The third is the feeling that problems are being solved urgently. And finally, the feeling - I have it under control - of responsibility and leadership by the person at the helm.
And sometimes, while not as easy as 1-2-3, you can use the lemon of a disastrous event to make lemonade—this might be the perfect time to renovate your restaurant the way you’ve been planning to but never quite got around to it. Perhaps you couldn’t afford to shut down your restaurant for construction. What about that branding update or makeover? Now is the time to reinvent yourself! Renovations inside and out might be just the ticket you need to prosper.