It is a well-known fact that America enjoys its food. The food service industry has some of the healthiest margins of any industry around the world today. This makes the industry super appetizing to work out of. However, all industries come with risks and operational resilience should be a key component of a food service organization. Here are some risks that organizations should account for when operating in the food industry.
Supply Chain Risk
One of the biggest factors that threaten operational resilience is vendors dropping the ball. Food companies source a lot of different ingredients from other organizations around the world. Usually, the orders are more focused on volume rather than the actual details. If a supplier drops the ball, it can lead to shortages and a bad reputation. The best ways to account for this risk are to have multiple vendors, interruption insurance, and strong vetting processes.
Food service organizations function a lot like factory assembly lines. Most food service organizations focus on convenience and price rather than quality. We are talking about our McDonalds of the world, not Ruth Chris. The functionality of the equipment is super important. Technology helps get a consistent burger out the door within minutes. Invest in your equipment and ensure your staff takes care of it. We all know the dreaded reputation of the McDonald’s ice cream machine. Let us avoid that.
The FDA regulates the two massive money-makers in America. Food and drug safety is a big concern. Poor cleanliness and handling processes can cause disease outbreaks that may be fatal. You want the consistency to be the top priority. Consistent food, pricing, efficiency, and cleanliness will keep your customers returning when they need a quick meal. A lack of safety will not only result in heavy financial losses but can destroy a reputation too. You see it time after time with food service companies having poor cleaning practices. A couple of years ago, Chipotle was faced with a problem regarding the way their meat was handled. They had to quickly go back to the drawing board to ensure franchisees are more responsible. Fortunately, they figured it out, but that doesn’t mean they took a huge hit financially. Ensure your policies are strict and don’t be afraid of reinsurance to protect against lawsuits.