7 Risks Every Restaurant Owner Should Prepare For
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The Restaurant Owner’s ‘What If?’ Checklist: 7 Things That Could Shut You Down Tomorrow
Running a restaurant means expecting the unexpected. But while most operators are prepared for a busy Friday night, fewer have a plan for what happens when something goes seriously wrong.
The good news? A little preparation today can save you a lot of money, stress, and lost business tomorrow.
Here are 7 scenarios every restaurant owner should prepare for before they happen.
1. What if your walk-in freezer dies overnight?
Thousands of dollars in inventory could be lost before you even open your doors.
☐ Install temperature monitors with phone alerts.
☐ Keep an emergency contact list for refrigeration repair & restoration companies offering after-hours service
☐ Have a backup plan for temporarily storing refrigerated or frozen inventory.
☐ Know whether your insurance covers equipment breakdown and food spoilage.
2. What if your POS system crashes during dinner service?
No payments, no orders printing, and a dining room full of customers.
☐ Know whether your POS system has an offline mode and how to activate it.
☐ Have a manual ordering and receipt process ready.
☐ Train staff on manual ordering procedures.
Don't wait until it happens: Run a five-minute POS outage drill with your team. If nobody knows what to do without the system, you've identified a problem worth fixing.
3. What if a pipe bursts and floods your restaurant?
A burst pipe can damage equipment, inventory, and flooring, potentially closing your business for days.
☐ Know where your main water shut-off valve is.
☐ Have an emergency plumber's contact information & restoration company
☐ Review your property and business interruption coverage.
4. What if a kitchen fire shuts you down?
Even a small fire can cause significant damage and interrupt operations.
☐ Schedule regular inspections and cleaning of kitchen exhaust and fire suppression systems.
☐ Make sure fire extinguishers are accessible, inspected, and appropriate for their intended use.
☐ Train staff on emergency procedures.
☐ Confirm your insurance covers fire damage and understand any applicable lost-income coverage.
5. What if someone breaks in overnight?
Stolen equipment, property damage, and lost revenue can quickly add up.
☐ Install security cameras covering entrances, exits, and high-risk areas.
☐ Establish clear cash-handling and end-of-day deposit procedures.
☐ Keep an updated inventory of valuable equipment, including serial numbers.
☐ Review your theft and vandalism coverage.
6. What if an employee is seriously injured?
Workplace accidents can happen in even the most carefully managed kitchens.
☐ Maintain clear workplace health and safety procedures.
☐ Ensure employees receive appropriate safety training.
☐ Keep first aid supplies accessible and ensure required first aid coverage is in place.
☐ Establish a process for documenting and reporting workplace incidents.
☐ Confirm your WCB-Alberta requirements and any additional insurance needs.
7. What if a customer gets injured?
A slip, fall, or other incident could result in unexpected expenses and liability concerns.
☐ Conduct regular inspections for hazards, including spills, loose flooring, and icy entrances.
☐ Document cleaning schedules and safety checks.
☐ Train staff on how to respond to customer incidents.
☐ Establish a clear incident reporting process, including preserving relevant evidence.
☐ Review your commercial general liability insurance and understand its limits and exclusions.
The 15-Minute Restaurant Reality Check
Here's a challenge for your next management meeting.
Ask your team three questions:
What are the three biggest risks that could shut us down tomorrow?
Do we have a plan if any of them happen?
Could we financially survive being closed for two weeks?
If you can't confidently answer all three, it's time to take a closer look at your emergency plans.
Are You Covered for the Unexpected?
Having an emergency plan is important. Having the right insurance is another essential part of protecting your business.
Not all commercial insurance policies offer the same protection. Equipment breakdowns, food spoilage, cyber incidents, and business interruptions may require specific coverage.
The worst time to discover a gap in your insurance is when you need to make a claim.
Explore your commercial insurance options with BrokerLink →
Alberta Hospitality Association of Alberta members and their employees qualify for exclusive insurance discounts with BrokerLink. Get a quote on car or home insurance, and you could win 1 of 12 cash prizes of $1,000 in the Better Together Sweepstakes. Visit BrokerLink.ca/ab-hospitality.
Insurance coverage is subject to policy terms, conditions, and exclusions. Speak with a licensed insurance broker to review your specific needs.