Restaurants in the state of Utah and throughout the country typically operate on razor-thin margins. Any excessive waste can erase those margins, putting restaurant operations at financial risk. Food spoilage is the leading cause of waste; this waste is one of the most critical expenses standing between success and failure. Food spoilage can also lead to severe illnesses, opening up the potential for legal claims against your business. While Utah restaurant insurance protects against many operational and liability risks in the restaurant industry, preventing food spoilage also serves as a valuable risk management tool. Here is a look at how successful restaurant operations prevent food spoilage.
Food Spoilage: Restaurants and Customers at Risk
In the United States, an estimated 22 to 33 billion pounds of food are wasted each year. According to an article published in Foodprint, approximately 10% of all food purchased by restaurants is wasted before reaching customers. While not all of the food waste is due to spoilage, or foods becoming undesirable or unsafe to eat, spoilage itself is a huge problem for restaurant owners. Millions of dollars in avoidable expenses accrue, and the risk of a serious or fatal foodborne illness can strain even the most robust Utah restaurant insurance policy. A single foodborne illness outbreak can cost hundreds of thousands of dollars in mitigation, business interruption, legal expenses, and regulatory fines and penalties. Protecting food from spoilage is not only a smart way to protect financial assets, but it can also help keep customers safe.
Understanding Food Spoilage
Food spoilage is a complex issue for restaurant owners. Certain foods and food ingredients have short shelf lives, resulting in spoilage if not consumed promptly. Other foods can lose nutritional value or flavor, which can have a negative effect on customer satisfaction. Food spoilage can occur in several ways, including:
Oxidation – exposure to oxygen leads to changes in color, texture, flavor, and nutritional value.
Enzymatic action – enzymes found naturally in foods hasten the spoilage process, causing it to experience changes in color or flavor.
Changes in temperature – held at too high of a temperature, foods can spoil rapidly as decay organisms thrive. If foods are stored at too low of temperatures, ice crystals can form, leading to unpleasant changes in color, flavor, texture, and quality.
Damage – if foods become bruised or canned/bottled ingredients become dented or cracked, bacterial growth can accelerate, causing foods to spoil rapidly.
Microbiological growth – yeasts, molds, and bacteria are found naturally on food products or may contaminate foods stored incorrectly. These microorganisms cause food decay and can result in severe illnesses if contaminated foods are consumed.
Beating Food Spoilage
Restaurant owners and staff have established industry practices to rely on when it comes to preventing food spoilage. Just like Utah restaurant insurance protects against risks, adhering to food safety practices can prevent foods from becoming spoiled waste – or sickening a restaurant patron. One of the most rigorous food safety strategies used by restaurants is known as HACCP, or Hazard Analysis Critical Control Point, which is a food management system developed by the U.S. Food and Drug Administration (FDA).
The first strategy is to avoid overstocking food items. Inventory management can help protect against food waste; purchasing only what can be used within a certain period of time also helps to ward off spoilage. Ultimately, this saves the restaurant money. Specialized inventory tracking apps can be used to facilitate the stocking process.
Next, food storage is critical in preventing spoilage. According to HACCP guidelines, foods must be refrigerated at a temperature between 34-40 degrees Fahrenheit. Frozen foods should be kept below freezing temperatures until use. For foods stored in pantries, a temperature between 50-70 degrees is ideal. Food storage is not only about temperature control, but also includes practices like:
- Protection from physical damage.
- Protection against cross-contamination (keeping raw/perishable and precooked goods separated until preparation or use).
- Protection from light sources, moisture, and air.
Finally, staff training on HACCP principles and other food safety strategies is critical. When staff members understand their role in protecting guests from foodborne illnesses, this supplements the protections afforded by Utah restaurant insurance. Training should be conducted on a regular and ongoing basis; food safety experts can facilitate training programs in the restaurant or at an offsite facility.
With these protections, and with Utah restaurant insurance as a risk management tool, restaurant owners can slash runaway expenses that accompany food waste. Even more important, owners and staff can protect operations from the financial and reputational risks associated with lawsuits resulting from foodborne illness outbreaks.
About BTC Insurance Services
Founded in 2011, BTC Insurance Services has proudly served Utah businesses with comprehensive and custom-tailored insurance coverages for a decade. We pride ourselves on fostering long-term client relationships with a personalized and hands-on approach, and have established a reputation built on quality and transparency. For more information about our products and services, we invite you to contact one of our reputable agents today at (855) 944-3457, or send us a message here.
