How to Counter Restaurant Inventory Spoilage

If you are running a restaurant, it’s quite clear that food and beverages are your biggest resources. So, that begs the question, what do you do if those assets are no longer usable? Inventory spoilage can occur in a variety of ways including: power outages, breaks in cooling systems, ventilation and sealing malfunctions. Don’t let these mechanical breakdowns spoil your business. First off, make sure to contact our agents at H&K for a spoilage or specialty restaurant policy. Then, continue reading to see how you can counter inventory spoilage and keep your resources intact.

Equipment Breakdowns

Unfortunately, you can’t fully prevent any of these disasters from happening. But, you can take measures to significantly reduce the odds of them occurring. Here are a few procedures you can do to stay on top of any mechanical breakdowns:

• Maintenance: By regularly keeping up with the preventative maintenance of your equipment, you can better forecast a potential breakdown and resolve the issue before the damage occurs.
• Alarms: Investing in temperature alarms for walk-in coolers, freezers, and refrigerators can provide you with an alert system that allows you to react quickly and efficiently to preserve restaurant inventory in the event of a mechanical breakdown.
• Contingencies: Having additional refrigerators and freezers on hand can provide a place to store any inventory that was once occupying any broken equipment. These units can also be used to store products with a longer shelf life and therefore does not require immediate backup power to prevent spoilage.

Emergency Planning

Developing an emergency plan can significantly reduce the stress and panic that comes as a by-product of potential inventory spoilage. The plan needs to be reiterated to all employees and should encompass the following aspects:

• Alternatives: A great emergency plan consists of several alternative solutions to a problem based on a variety of different scenarios. This allows you to be prepared for almost any situation, giving you the ability to act quickly and efficiently.
• Responsibilities: The plan should include roles and responsibilities of all employees to ensure a smooth procedure in the event of an emergency.
• Recovery/Salvation: If inventory spoilage occurs, the plan also needs to address where the spoiled food will go. For example, local zoos would be a great venue to sell your spoiled produce to.

Coverage Costs

If your restaurant suffers any inventory spoilage from either natural or man-made occurrences, be sure your insurance company provides you with the coverage you need to restore your lost stock. Spoilage insurance can be an inexpensive add-on to your existing business owner’s policy and provides coverage for any mechanical failures—even power outages. In addition, food spoilage coverage can also help reimburse you for the cost of your lost food and beverages up to your policy’s limits.

Over the lifetime of your restaurant, you are bound to experience inventory spoilage in some capacity. At H&K Insurance, our specialists work endlessly to provide comprehensive coverage to keep your business running smoothly even in the event of a mechanical emergency. Make sure to read our other article about restaurant spoilage; Spoilage Insurance: Countering A Restaurant’s Weakness. Don’t wait until it’s too late, contact H&K Insurance to find out more about how our policy can keep your restaurant fresh and ready to serve.