The emotional and financial nightmares that accompany a serious outbreak of foodborne illness impacts you, and your business, immediately and it lasts a lifetime. In many cases businesses are forced to close their doors, if not for financial reasons, then for the emotional impact on owners.
When assessing the damages that a foodborne illness could inflict on your operation consider the impact of:
Sick Customers & Employees
The emotional distress experienced by operators when customers and/or employees die or suffer life-altering disabilities from foodborne illness will often far outweigh the impact of even the most punitive of financial damages. It is a life-altering event.
Loss of Public Confidence
Foodborne Illness is a major news event that becomes public knowledge immediately. A business, and personal reputation, built on trust and confidence over many years is dramatically impacted within hours.
Product Recall
Product recall, reworking, repackaging and disposal activity is a major expense that consumes all functions within an organization. It has an immediate impac on product availability, market presence and cash flow. Many times it also results in a permanent loss of distribution, retail space and retail support.
Lost Revenue
How long can your operation meet its financial obligations with 0% of its current revenue? How long at 80% of its revenue or at 50% of it's revenue? When foodborne illness occurs it impacts all products & outlets in your operation and not just the one infected. What actions will you need to take to dramatically cut costs to survive? What impact will these actions have on your business? On the lives of your employees? On your own family?
Lost Market Share
Where will your customers go when your product or service is temporarily unavailable? Will they return when the problem is resolved? Why? What will it take for them to regain confidence in your operations? Can you afford the time and money necessary to rebuild their confidence and trust?
Fines
Under the principles of strict liability and constructive knowledge expect to pay damages to your customers and their families. Also expect fines. What will insurance cover?
Closure
Unfortunately, an often occurrence. Sometimes temporary, sometimes forever.