Fresno, CA – 07/11/2024 – The California Restaurant Mutual Benefit Corporation (CRMBC), a leading workers’ compensation provider for the California restaurant industry, today announced a 71.8% increase in annualized revenue over the past year, rising from $10 million to $17.2 million. This significant growth highlights CRMBC’s commitment to providing exceptional workers’ compensation solutions to the restaurant industry.
“This growth is a testament to the dedication and hard work of our entire team and the commitment from our board of trustees. We are proud to have reached this milestone and look forward to continued success,” said Kaya Stanley, CEO of CRMBC.
Key Achievements:
- Revenue Growth: Annualized revenue increased from $10 million to $17.2 million, representing a 71.8% growth rate.
- Expanded Payroll: CRMBC’s annual payroll now stands at approximately $500 million.
- Financial Milestones: The organization recouped $6 million that was being held as collateral for its bond and reduced its Estimated Future Liability (EFL) by $2.5 million.
- New Memberships: CRMBC welcomed several prominent restaurant groups, including Golden State Restaurant Group, Cohn Restaurant Group, Miguel’s Jr Restaurants, Norm’s Restaurants, Brophy & Sons, Milano Group – Me & Eds Pizza, Mad Duck Brewhouse and Restaurants, and Tahoe Restaurant Group.
Strategic Leadership and Robust
Governance Drive CRMBC’s Growth
CRMBC’s recent success can be attributed to several key factors, each playing a crucial role in the organization’s impressive growth. The appointment of a new CEO in December 2022, along with attracting new board members such as Russ Bendel, Retired CEO of The Habit Burger Grill, Emeritus Past Chairman of The Board, California Restaurant Association (CRA), and Selwyn Yosslowitz, Founder of Marmalade Cafe and Emeritus Board Member, California Restaurant Association, has brought fresh perspectives and robust governance to the organization. These leadership changes have significantly impacted CRMBC’s strategic direction and operational efficiency. “Strong leadership and governance are essential to navigating the complexities of the insurance sector,” noted Stanley.
CRMBC’s operational capabilities have been further strengthened by adding The PATH Alliance as the new administrator and underwriting team in July 2023 and a new TPA as of June 2024. These strategic appointments have bolstered the organization’s ability to manage and streamline processes effectively.
CRMBC’s Growth and Financial Stability Bolstered by
High-Quality Members and Nonprofit Governance
CRMBC’s growth highlights the increasing demand for specialized insurance solutions within the restaurant industry. This success story is a model for other organizations, emphasizing the importance of tailored programs and effective risk management strategies.
The addition of high-quality members, including prominent restaurant groups, has significantly strengthened the organization’s financial base. This growth in membership is a testament to CRMBC’s ability to attract and retain esteemed members within the industry, contributing to its financial stability and growth.
CRMBC operates as a nonprofit mutual benefit corporation governed by its members. This model ensures that every decision supports the overall success of its members. “We provide the best care for injured workers, fight fraud, promote return-to-work programs, and manage claims effectively,” said Stanley.
Critical Factors Behind CRMBC’s Success:
Strong Underwriting and Innovative Programs
One of the biggest keys to CRMBC’s success is its underwriting team, which uses the highest standards to calculate rates to maintain financial strength. “A group is only as strong as its underwriting, and our team’s goal is to be exceptional at maintaining our financial health,” emphasized Stanley.
Implementing programs such as CRMBC’s new Loss Prevention Program and initiatives to reduce unnecessary legal, administrative, and collection costs have contributed to a $2.5 million reduction in Estimated Future Liability (EFL). These programs streamline operations and provide significant financial benefits to members.
About CRMBC
CRMBC is a California Self-Insured Group (SIG) formed by restaurant owners for restaurant owners. Choosing to opt out of commercial insurance that uses premiums to boost their substantial profits and overhead, CRMBC is a group of business-savvy restaurant owners who joined forces to self-insure their work comp for sustainable cost savings.
For More Information:
Jeremy Woolf
First Domino Marketing for CRMBC
Phone: 917-803-4247
Email: jeremy@firstdomino.marketing
Website: www.crmbc.com
