Strategic Risk Management



Restaurant Risk Management

Introduction

A restaurant is referred to a business which involves preparation and serving of food and drinks to the customers in return for money. It depends upon the principles and policy of the restaurant business that they receives the money for the provision of food and services before the meal, with a running tab or after the meal. It is very obvious that the meals are served generally within the restaurant premises, but there are also a number of restaurants that offer food deliver and take out services. It is also obvious that the restaurants vary and differ in the offerings and appearances which involve a variety of the service models and the cuisines of the main chef. It is quite obvious that the restaurant is a complicated business which involves the management of various operations and services at the same time for the effectiveness of the business. On the other hand, it is also observed that there are some specific risks that are experienced by the restaurant businesses which are very important to be managed at the correct time effectively (Wentz, 2007). The main focus of this paper is to identify a potential risk in a restaurant business and develop a risk management plan to avoid major losses for the restaurant.

Risk Management Plan

It is very obvious that a restaurant business involves various important operations and activities for the effective continuance of the restaurant business. The following is a risk management plan that could be effectively developed for the management of the risks in a restaurant business. The following are the most significant steps that would be involved in the risk management plan for controlling and managing the risks occurring in a restaurant business.

Establishing the Objectives and Context

The first step in the risk management plan is the establishment of the objectives and the context. The core objective of the restaurant is to provide the best dining experience to its customers and provide continuous excellence in the food that they serve. It is very obvious that the industry in which the restaurant operates is the restaurant industry and there are a number of competitors in which there are a number of restaurants that are operating from a long period of time. There are a number of stakeholders with whom the restaurant continuously deals for the effective completion of the restaurant operations and services include the suppliers of ingredients, shareholders, customers, employees who are employed in the restaurant. There are number of strengths that are related to McDonalds' fast food chain (Gilbert, 2009). One of these strengths include that they possess the largest share in the market and a brand recognition that is valued at $40 million. In addition to this, the fast food chain possesses the local food menus and also establishes partnerships with the best brands all over the world. An open opportunity exists for McDonalds that fast food is the fastest growing market and McDonalds could grow more with their expertise of fast food ...