The restaurant industry is built on trends and changing appetites. For restaurant owners, keeping up with an ever‑changing customer base and operational risks are familiar territory. No matter the challenge, resilience is part of the job.

Five key challenges restaurant owners can protect themselves against

  1. Armed robbery: Robbery may target cash on-site, cellphones, watches, jewellery, and other valuable items in the restaurant such as artwork and expensive liquor.
  2. Burglaries: These often take place after hours. Intruders tend to target costly stock or an on-site safe. Property may be vandalised during these burglaries, resulting in significant financial losses.
  3. Theft: Dishonest employees may steal stock, cash or restaurant equipment. Diners may also steal from the restaurant or from other customers.
  4. Fraud: Stolen bank cards, counterfeit currency, skimming of debit or credit cards, and even the copying of card number details from discarded receipts. Dishonest staff may also falsify invoices and suppliers could over‑invoice for goods of inferior quality or fail to deliver items that were paid for.
  5. E-commerce and cyber crime: Poorly protected contactless or low‑contact digital payment systems, wireless networks, cloud‑based business solutions, point‑of‑sale (POS) systems, and online ordering structures can make both restaurant owners and customers more vulnerable. Scams can include falsified discounts or promotions on hacked-into websites or smartphone apps, data loss or compromised cardholder data theft as a result of installed malware.

Tailored business insurance cover can benefit your restaurant

“Restaurant owners who are Discovery Business Insurance clients now have access to embedded (automatically included) cover innovations at no additional premium when they include relevant sections of cover on their plans,” says Lana Ross, Chief Operating Officer of Discovery Business Insurance.

“This embedded cover can be increased as needed at an additional premium. We’ve allowed for this in our offering to give restaurant owners the flexibility to choose the level of cover they need,” she adds.

Seven embedded cover innovations on offer

  1. Enhanced embedded business interruption cover to the value of R100,000 for policyholders, including cover for any franchise fees which may be payable during the indemnity period. An additional R25,000 customer loyalty benefit is also included for restaurant owners. They can use it to issue vouchers to incentivise customers who were at the restaurant at the time of a crime event to return to the restaurant in future.
  2. Restaurant reputation cover to the value of R50,000, which could be put to use to help respond to a crisis event. This benefit gives clients 24/7 access to reputational experts from a leading global marketing communications firm, so as to ensure that the best full response strategy can be well implemented.
  3. Increased cover during the peak season. An automatic 15% increase for the sum insured is included for the Stock (Fire section), Money and Theft sections of the plan. This can help restaurant owners avoid underinsurance during peak periods.
  4. Hand‑held point of sale (POS) device cover to the value of R10,000. This cover can be helpful for any financial losses incurred because of an insured cyber security breach of POS device software. Cover also includes R15,000 accidental damage protection for these devices.
  5. Other premises cover automatically protects business operations and equipment (under the Fire section) and offers liability cover (under the Public liability section) by extending insurance cover to other third‑party premises. For example, when hosting exhibitions or catering events.
  6. Floating stock cover (as one total sum specified) insures goods that may be kept across multiple business premises by specifying one total sum insured for all.
  7. Access to quality legal services is just a click (online) or telephone call away, providing quick and convenient assistance when needed. Contract-drafting services are also available for clients through this benefit.

“Operational disruptions can bring about both the best- and worst-case scenarios for businesses. In either case, businesses can use it as an opportunity to adjust their strategies so as to enable other revenue streams, helping to make their businesses profitable,” says Ross.

Today, the nature of restaurants and the hospitality industry is such that owners are implementing new ways to reach customers. This could include using food trucks, event catering, deliverable produce boxes with ingredients for signature dishes to be made at home, and frozen craft meals.

“No matter how the industry evolves, our tailorable cover can certainly help restaurant owners with existing and emerging challenges, thereby enabling them to reduce risk of potential worst-case scenarios,” she concludes.

To get a quote for our bespoke Restaurant product, speak to your broker or click here.