Food Service: Risk vs. Profits

One thing that working with various clients does for an individual is teach them new lessons about the business.  Recently I had the privilege of working with a small retailer.  Their major concern was having someone to run their operations.  Previous management had spent hours in the stores but had no structure and no real agenda.  Yes there were operational issues.  Every retailer has challenges that need to be resolved in the short term and in the long term.  But what I was truly shocked about was the liability this company had from food service.  I had thought that every retailer had read all the articles about how one food service liability case could eliminate any profit that could possibly be created for many years to come.  You would think that everyone remembers the trials and tribulations that Jack in the Box faced after their e coli troubles and how many years it took to come back, if only partially.  I have seen companies just operating a thaw and serve program that faced large losses because procedures were not followed and a customer consumed a compromised product.  To put things in perspective, the company I was working with was preparing items from scratch that introduced an infinite number of variables and risk into the process.  So what had this company done to prevent it?  Absolutely nothing.  After speaking with management, it was determined that there were two forces working.  One is called the Superman Syndrome.  In the Superman Syndrome, the client is working under the illusion that they are invincible and that nothing can happen to them.  This is one of the most dangerous illusions in the management of risk.  The old adage, hope for the best but prepare for the worst would hold some wisdom in this scenario.  Too many times management believes they can dodge the bullet but we all know this is just a matter of probabilities.  Eventually, your number comes up.  When it does, it is not a Las Vegas jackpot but a team of lawyers that will be in your pockets.  The other syndrome that was in effect was the Ostrich Syndrome.  Look away, pull up the covers or stick your head into the sand to avoid the reality of the situation.  Denial does not eliminate what could and will happen if steps aren’t taken to control the situation.  It may not be one hundred percent effective but we still have the duty to our customers to do everything we possibly can to protect them and our stakeholders.  The motive to short cut or ignore well established procedures in the name of profit makes even Wall Street look like saints and this is the way a judge and jury will look at the complaint.  Bottom line is, if you don’t know what to do, there are numerous people who have that knowledge. Take the time and dedicate the resources needed.  Analyze your business, train your people and certify everyone in Serve Safe.  Do not accept anything below established standards.  Whether it is equipment, training, certification or procedures, we need to hold ourselves to the same standard we claim to hold our employees to.  Management cannot have the double standard to expect employees to follow procedures when management compromises any aspect of the business due to the syndromes discussed.  To ignore the issue shows an incredible lack of responsibility to your customers.  And eventually, that attitude will catch up with you.