Author: Kaya Stanley, Board Chair and CEO, CRMBC
Restaurant owners face a wide range of risks that can affect their operations, from the ever-present challenge of compliance to the increasing threats of cybersecurity breaches. In a recent episode of the Self Insurance Podcast, I had the opportunity to sit down with Placito Miceli, AVP Senior Risk Consultant at Hub International, who shared his expert insights on risk prevention strategies that restaurant operators should prioritize.
The Growing Threat of ADA Compliance Lawsuits
One of the most pressing issues highlighted by Placito is the rise in ADA (Americans with Disabilities Act) compliance lawsuits. These “drive-by” litigations, as Placito describes them, are becoming more common, especially in states like California, Arizona, and New Mexico. The implications for restaurant owners are significant.
“It’s a very simple thing that someone who doesn’t even necessarily have to have a handicap or be impeded by something that you haven’t done, such as a sign, can easily get $5,000 out of you,” Placito explains. While $5,000 may not seem like a large sum, it quickly adds up when you consider multiple violations across different locations—$5,000 for every parking space, $5,000 for no bathroom rails, and so on.
These compliance issues and the pressures of minimum wage increases could force restaurant owners into difficult financial decisions. Placito emphasizes the importance of staying ahead of these risks through proactive measures and ongoing staff training.
Navigating the Complexities of Marijuana Legislation
Another emerging risk for restaurant operators is the complexity surrounding marijuana legislation, particularly in states where marijuana is legal. The new laws present challenges for employers balancing employee rights with workplace safety.
Placito advises restaurant owners to review their current policies closely and ensure they align with state regulations and insurer requirements. “You have to be honest with yourself, look at your organization, and then look at what policies you reasonably can put in place,” he says. The introduction of protections for employees who may test positive for marijuana complicates the process of managing workplace safety, making it essential for restaurant owners to review and update their policies.
Workplace Violence: A Critical Risk Management Area
In addition to compliance and legislative challenges, Placito strongly advocates for implementing workplace violence plans. He stresses that having such a plan is not just a regulatory requirement but a moral responsibility for restaurant owners.
“If you do not have a workplace violence plan in place, you are doing a great disservice, not only to your organization but to those individuals that live and work in your community,” Placito says. He points out that the restaurant industry often employs young people who may come from backgrounds where violence is more prevalent, making it all the more important for employers to be vigilant and prepared.
Cybersecurity: An Overlooked but Critical Threat
Finally, cybersecurity emerged as a key concern during our conversation. Placito warns that restaurant owners who neglect cybersecurity leave their businesses vulnerable to potentially devastating attacks.
“How long can your business survive with the POS system shut down? Two days? Three days? All it takes is a small breach, and you’re faced with the decision to pay a ransom or risk significant downtime,” he explains. As cyber threats become more sophisticated, especially with the advent of AI, it’s crucial for restaurant operators to invest in cybersecurity measures that protect their profitability and ensure business continuity.
Moving Forward: Practical Steps for Restaurant Owners
Placito’s insights underscore the importance of a holistic approach to risk management in the restaurant industry. By addressing these emerging threats—ADA compliance, marijuana legislation, workplace violence, and cybersecurity—restaurant owners can better protect their businesses and ensure long-term success.
As the restaurant landscape evolves, staying informed and proactive is key. For more strategies on managing these risks, tune in to the full episode of the Self Insurance Podcast. And if there are any specific topics you’d like us to cover in future episodes, please contact us at info@CRMBC.com.
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Kaya Stanley is an attorney, published author, business owner, and highly sought-after strategic turnaround expert. Ms. Stanley serves as CEO and Chairman of the Board for CRMBC, the largest restaurant workers’ compensation self-insured group in California, and she is the Licensee for TEDxReno, an independently organized TEDx Event.
Throughout her 22 years of practicing law, Ms. Stanley has served as outside counsel for Wal-Mart and Home Depot. She was voted one of the country’s “Top 25 OZ Attorneys” by Opportunity Zone Magazine and published a best-selling book called “The Employer’s Guide to Obamacare.” Before that, she earned her master’s degree in social work and public policy, after which she worked with at-risk girls in Detroit and lobbied for women and families.
