South Africa’s travel and tourism sector is forecast to grow at an average annual rate of 7.6%. At the heart of this success lies the restaurant and hospitality industry. From unforgettable meals to warm service, restaurants help shape the visitor experience while also fuelling broader economic development. Ensuring the sustainability of this vital sector means restaurant owners must actively mitigate operational risks.

The latest Dineplan Industry Trends Report 2024 reveals that the platform processed 4.3 million reservations in 2023 alone, seating a total of 22.6 million diners across South Africa. According to Stats SA’s Food and Beverages Survey for May 2024, income generated by the food and beverage industry rose by 3.7% year-on-year – a sign of strong ongoing growth.

Paula Harvey, Business Development Manager at Santam, South Africa’s largest short-term insurer, notes that the restaurant sector is not only economically important and  vital to job creation, but also a cultural asset that places the country on the global culinary map. Two South African restaurants – Fyn and La Colombe and Salon – are currently ranked in the top 50 of the World’s Best Restaurants Awards.

Beyond food, today’s restaurants have become lifestyle destinations. For parents especially, child-friendly eateries with play areas and on-site childminders offer a rare and welcome reprieve. The chance to enjoy a meal – without cooking it – while someone else watches the kids, is invaluable.

These family-focused venues often feature a range of attractions to keep children entertained for hours, including jumping castles, jungle gyms, bicycles, ponds, train rides, swings and slides. While these features enhance the experience, they also come with increased liability risk. For restaurateurs, food poisoning or slip-and-fall claims are no longer the only concern.

Liability insurance plays a crucial role in safeguarding businesses against these risks. As part of a broader risk management strategy, it ensures owners are protected should accidents occur. The key, says Harvey, is in understanding your specific risk profile and securing appropriate insurance cover.

“Determining how much liability cover you need is the tricky part,” she explains.

Harvey shares the following tips to help restaurant owners mitigate liability risk:

• Display a clear indemnity notice. Consult with a legal advisor to ensure you comply with industry regulations and municipal bylaws.
• Train your childminders in First Aid and ensure the staff-to-child ratio is appropriate.
• Regularly service and maintain equipment in the play areas, and clean all items daily.

“Many clients ask how much liability cover is enough,” Harvey adds. “The answer depends on the nature and number of activities you offer – and on who your customers are. If something happens to a guest and you are found legally liable, the expectation is often compensation.”

Every business is different, which is why working with a knowledgeable intermediary is key. They can help you assess your risks, recommend appropriate cover, and ensure you’re properly protected.