Rising Incidence of Cyberattacks in the Restaurant Industry

DO NOT IGNORE THIS BLOG POST: A cyberattack could shut down your business and potentially lead to bankruptcy. This is not an exaggeration; recent incidents involving major companies like Verizon and Bank of America underscore the real and immediate dangers all businesses face today.

The restaurant industry is not immune. It faces an increasingly sophisticated cybersecurity threat landscape. By understanding the risks and implementing proactive measures, restaurant owners can better safeguard their operations and customer data against the rising tide of cyberattacks. Addressing these vulnerabilities is essential for maintaining customer trust and protecting the bottom line.

This blog post is the first in a five-part series focused on enhancing cybersecurity in the restaurant industry. Upcoming posts will examine critical areas such as securing point-of-sale systems, recognizing phishing attempts, building ransomware resilience, and implementing the NIST Cybersecurity Framework tailored for hospitality.

Recent Cyber Breaches

A series of alarming incidents underscore the urgency for enhanced cybersecurity. For example, in January 2023, Yum! Brands operating well-known chains like KFC and Taco Bell suffered a ransom attack. This incident temporarily closed nearly 300 restaurants in the UK and compromised the personal information of U.S. employees. Golden Corral experienced a data breach affecting over 180,000 individuals, exposing sensitive information, including Social Security numbers.

In March 2024, the Panda Restaurant Group, known for Panda Express, reported a breach after attackers accessed their corporate systems. This incident compromised the personal information of current and former employees, including names, Social Security numbers, financial details, and medical records. The company promptly notified affected individuals and worked with law enforcement to conduct a thorough investigation.

Additionally, California Pizza Kitchen faced a significant breach in November 2021 that impacted tens of thousands of current and former employees. The compromised data led to a class-action lawsuit against the company, alleging negligence in safeguarding employee information. These incidents illustrate the immediate threat to restaurant operations and emphasize the long-term repercussions of such attacks.

Factors Contributing to Vulnerabilities

Several factors increase the risk of cyberattacks in the restaurant industry. Employee turnover often results in inconsistent cybersecurity training and awareness among staff. The rapid integration of digital technologies—such as online ordering and digital payments—has expanded the digital footprint, creating more opportunities for cybercriminals to exploit vulnerabilities. Additionally, reliance on external vendors for services such as point-of-sale (POS) systems can introduce significant risks if not managed properly.

 

Impacts of Cyberattacks

The consequences of cyberattacks on restaurants can be severe and multifaceted. Financially, the average cost of a data breach in the hospitality industry is substantial, estimated at around $3.3 million. Beyond immediate financial losses, these breaches can damage a brand’s reputation. The erosion of customer trust may lead to decreased patronage and affect long-term business viability.

Operationally, cyberattacks can result in temporary closures and disrupt business functions, causing significant revenue loss. The Yum! Brands incident is a stark reminder of how such attacks can ripple through an organization, impacting employees and customers alike.

 

10 Tips to Secure Your Restaurant’s Network

Use Strong and Unique Passwords
Create complex passwords that combine uppercase and lowercase letters, numbers, and symbols. Consider using a password manager to generate and store these passwords securely.

 Implement Network Segmentation
Set up separate networks for guest Wi-Fi, employee access, and critical systems. Devices joined to one network should not be able to communicate with each other across networks. For example, your point-of-sale systems and printers should be on a private network. Guests drinking coffee in the dining room should only be able to join the guest network.

Regularly Update and Patch Systems
Keep all operating systems and software up to date with the latest security patches. Also, remember to update the firmware on routers and other network equipment regularly. Either a third party or the vendor that provided the technology typically takes care of this.

Secure Your Wi-Fi
Protect your wireless networks with the latest Wi-Fi encryption standard, such as WPA3. Consider hiding your SSID (network name) to limit visibility to unauthorized users.  Hiding your private network name where critical systems are connected is the most simple and effective deterrent to unauthorized access to your operational technology in use.

Enhance Endpoint Security
Install and maintain antivirus software on all devices connected to your network to protect against malware and other threats. Standard malware and antivirus software should also be installed and maintained on all company-provided computers or systems. No personal devices should be allowed to join a private or secured network.

Implement Access Controls
Use Role-Based Access Control (RBAC) to ensure that users only have access to the information and systems necessary for their roles. Require Multi-Factor Authentication (MFA) for critical systems and administrative accounts.

Educate Your Employees
Provide regular training for staff on security best practices, including identifying phishing scams and social engineering attacks. Ensure they know how to respond to security incidents and report suspicious activity.

Conduct Regular Security Assessments
Perform vulnerability scans to identify potential weaknesses in your network. Consider engaging a professional penetration testing firm to simulate attacks and reveal vulnerabilities.

Establish Robust Security Measures
Implement firewalls and intrusion detection systems, and conduct regular security audits to safeguard your digital assets from breaches.

Develop an Incident Response Plan
Create a comprehensive plan outlining immediate action steps and communication strategies for responding to potential cyber incidents. This preparation can help mitigate damage in the event of a breach.

The restaurant industry faces an increasingly sophisticated threat landscape regarding cybersecurity. By understanding the risks and implementing proactive measures, restaurant owners can better safeguard their operations and customer data against the rising tide of cyberattacks. Addressing these vulnerabilities is essential for compliance, maintaining customer trust, and protecting the bottom line. And, if you’ve made it this far, a quick reality check. The latest data indicates that 4,460 ransomware attacks have occurred since you started reading.

This blog post is the first in a five-part series focused on enhancing cybersecurity in the restaurant industry. In the upcoming posts, we will explore more detailed strategies and best practices for protecting your restaurant against cyber threats, including securing POS systems, combating phishing attempts, building ransomware resilience, and implementing the NIST Cybersecurity Framework.

For further insights and guidance on safeguarding your restaurant from cyber threats, consider subscribing to industry resources or consulting cybersecurity professionals.