Insurance Policies for Risk Mitigation

Many businesses are established where there is a good flow of customers. Notably, the population is one of the factors that determine the demand in the restaurant business.

Such businesses depend exclusively on the number of customers to increase the businesses’ sales volume.

In this case, I have selected a restaurant business located in Athlone town center. The said location is one of the attractive shopping centers in Ireland.

Due to a large number of people who visit the place daily, the restaurant is likely to make good profits.  It is a medium-sized dine-in restaurant with approximately 50 people seating capacity.

The restaurant has been in operation for more than five years. The services offered by the restaurant have enabled it to attract at least 50 people daily.

To meet the expectations of the customers, the restaurant operates based on the opening hours of the Athlone town center (Athlone 2019). Notably, the restaurant is always open seven days a week. Apart from the average closing hour, the restaurant operates until night hours on Thursdays and Fridays.

The operating hours enables the customers to be served at any given time during the day. Also, the working hours have enabled the company to increase its sales volume over the years.

It employs ten people consisting of both service and kitchen staff. The management of the restaurant is concerned with the effective utilization of resources. In this regard, human capital acts as the most critical resource in the restaurant. Duties are segregated in the organization to ensure that employees deliver quality services.

In recent years, the restaurant has faced challenges regarding the allocation of responsibilities. Due to the increasing number of customers, the service staff does not have enough time to attend to all customers. However, the management has ensured that the ten employees work towards the achievement of organizational goals.

Based on the restaurant’s location, it faces competition from other businesses. In response to competition, the restaurant in question offers differentiated services.

Service delivery and excellent customer experience are the core values of the restaurant. Competition has also enabled the restaurant to come up with effective strategies to mitigate the risks of losing its customers.

The fact that there are other restaurants in the same area has enabled the restaurant in question to provide quality services hence retaining its customers. As a result, those customers who visit the restaurant are likely to come back. The reason for customer loyalty is quality services.

Apart from the competition, the business is also affected by other external environmental factors, such as technological advancements.

Ireland is one of the countries that have embraced new technologies. As far as shopping is concerned, various e-commerce businesses trade in different items, including ready food. Some of the businesses that deliver ready-made meals in Ireland include GourmentFuel; Halal Ready Made Meals as well as Paleo Meals Deliveries.

These companies operate using online platforms where people can place their orders and choose the place where they would like the meal to be delivered.

The delivery is done in good time since the businesses operate close to the people. Such a delivery business not only offers competition to the restaurant in question, but it also shows that society is changing as well as technology.

In other words, many people are likely to consider online shopping since they will not travel for a long distance. In this case, the restaurant in question does not deliver meals to its customers. Instead, customers need to come to the restaurant.

Part 2

The restaurant business is not exempted from both operational and financial risks. The business in question faces various challenges concerning its performance in the market. Dealing with food service can be very risky. For instance, handling fragile food is not easy.

Moreover, storing some types of food due is not easy in cases where the business is handling food items that cannot last for an extended period. Spoilage of food items can result in losses; therefore, the industry is aware of such risks. Generally, the restaurant business faces various challenges.

According to regulations laid down by the Irish government and other authorities, employees should not be subjected to harm or injuries. Companies that employ people to work in specific areas or sections of the company should ensure that adequate measures are put in place.

Identification of hazards

Fire and electric hazards are evident in the restaurant. In the kitchen, fire is used to prepare food. In any case, fire can cause damages to the kitchen or the entire restaurant. The use of gas for cooking is dangerous in some cases. Ignorance by the employees or customers can cause a fire.

For instance, if a fire is left on for a long time, yet nothing is being cooked, it can cause damages. The restaurant should ensure that both employees and customers are protected from fire.

Employees should wear attires that regulate the amount of heat that enters their body. This should be encouraged by those who are working in the kitchen.

The use of electricity can also cause damages to the restaurant. For example, overloading electric sockets, the availability of open electrical cables, and other electronic equipment can cause injuries. Employees should be taught how to handle such items.

Like many other restaurants, the business in question uses dangerous machinery and equipment. Sharp knives and other cutting objects can cause damages if they are not appropriately handled. The machines use to process some of the meals can also cause damages if handled carelessly.

The management should ensure that all employees are aware of the condition of equipment and any other machinery that is used within the business premises. By creating awareness and adopting safety measures to handle such material, the restaurant will minimize the risks that are caused by dangerous machinery.

The management can also decide to use other machinery that can do the same job but not as hazardous as the existing ones.

Due to the increasing number of clients, the business is experiencing overcrowding risks. The restaurant can only hold a maximum of 50 customers at a given time. However, customers may exceed this number. Therefore, crowded workplace risk is another hazard that the business faces. Small companies commonly experience this problem.

The management should consider expanding the business. Growth is one of the main aims of a business. The administration should consider seeking another space that can accommodate more than 100 customers at a time (Asadi 2015).

The meals are prepared using fire and other chemicals. If such chemicals are not used appropriately, the business is likely to experience damages. Burns and chemical hazards are also evident in the said restaurant.

Employees should be taught on how to use the chemicals. For instance, the chemicals used to preserve food should be used exclusively for their purpose. All chemicals should be labeled to avoid confusion. One of the strategies should be based on protecting workers from both physical and mental injury.

Who may be harmed?

Considering the types of hazards experienced by the restaurant, both workers and customers can be harmed. The availability of open electric cables can affect customers as well as employees. Overcrowding in the restaurant can also irritate some of the customers who would want privacy.

Generally, the lack of privacy would not attract many people. The business should employ strategies to protect customers as well as workers. Workers and customers are the key stakeholders in the industry.