Risk Analysis in a Restaurant Business

In this report  we will discuss about risks management and bleow are the summaries point:- Risk is defined as the probability of a business property or worker being exposed to hazards that could cause adverse health effects or negative impact on the achievement of business objectives. Hospitality business hazards can arise from a variety of activities and processes, including substances, materials, and practices. Risk assessment for El Camino Cantina should consider factors such as electrical power, vehicle transport flow, number of attendees, special needs groups, fire safety, security, and cash handling. The risk management process is essential for the success of a restaurant business and involves identifying and eliminating hazards before they can negatively impact the business. Restaurant managers have a major obligation to maintain the safety and health of customers, workers, and stakeholders, and to minimize property damage that can be costly to the business.      

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FACILITY AND RISK MANAGEMENT
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Executive Summary
Essential part of managing a restaurant business is pointing out the available threats,
analyzing hazards integrated with these risks in addition to implementing strategies in place to
remove the probability of these hazards selected out. Risk analysis is the initial stage in the risk
control process. It entails identifying potential hazards, the business owners have to look into
various levels when investigating the potential risks.
Tangible aspect involves the restaurant customer numbers, type of customers, and
workers experience, proximity to health and security facilities. Uncontrollable occurrences are
among the major considered factors, which involve factors such as state of the restaurant
location, ample parking space availability. Natural aspects, this includes factors such as weather,
waste management and technological equipment and availability of utilities.
Contents

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1.0 THE NOTION OF RISK...........................................................................................................3
1.1. Definition of Risk..................................................................................................................3
1.2. Subjects of Risk in Hospitality Business..............................................................................3
1.3. Essentials of Risk Management Process...............................................................................4
1.4. Recommendations.................................................................................................................5
2.0 Venue Risk Analysis (VRA).....................................................................................................6
2.1. Principles and concepts of VR..............................................................................................6
2.2. Purpose of Venue Risk Analysis...........................................................................................6
2.3. Recommendations.................................................................................................................6
2.4 Risk Ranking System (RRS)..................................................................................................7
2.4.1 Risk Ranking Table.........................................................................................................8
2.4.2. Likelihood definitions....................................................................................................8
2.5. Venue Risk Analysis (VRA) Foam......................................................................................8

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1.0 THE NOTION OF RISK
1.1. What is Risk
Risk is used in many ways and has acquired several definitions according to the field and
environment. Uncertainty and undesirable outcomes are the most related definitions of risk
(Kanter et.al, 2011). Risk is the probability that a business property exposed to a hazard or
worker will experience adverse health effects, it may also be caused by the human resource
within the hospitality sector resulting to great hazards. Risk is also defined as the likelihood of
the threat around being able to expose the vulnerable sectors of the hospitality business. It
involves a situation of danger exposure to the elements of the hospitality business such as the
human resource. It is also known as an uncertain occurrence or set of events, which in case of
occurrence will have a huge negative effect on the achievement of business objectives; risk is
assessed by observing several probability of a foreseen threat and measuring the magnitude of
the impacts on the objectives (Schellinck and Schrans, 2011).
1.2. Subjects of Risk in Hospitality Business
Hospitality business hazards arise from a wide range of activities involved in the sector. They
include substances, materials, practice and processes which have the possibility of causing harm
or negative impact to a worker or the restaurant business (Liu et. al, 2012).
There are several factors to investigate during risk assessment of factors that are in relation with
El Camino Cantina, Electrical power within the restaurant is a subject to risks, the managers
should make sure that electrical and lighting equipment in the restaurant are regularly checked
and maintained (Ostergren, Rosser, and Horvath, 2011). Vehicle transport flow within the venue

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identified is essential, the managers determine if the adjacent neighborhood has to remain active
or busy, availability of parking space and access roads for vehicles during the peak hours at the
restaurant. The number of attendees within the restaurant determines the level of risk expected,
the chosen venue capacity is assessed to know the level of stewarding that will be required.
Special needs group that attend the restaurant should be accounted for by considering the types
of customers at the restaurant such as young ones, the youth, grown-ups and people with
disability, getting a specific arrangement as specified by the customers available (Lane,
Landstrom and Whatmore, 2011).
Fire safety is a risk within El Camino Cantina due to high usage of flammable liquids, or other
gases in the kitchen. The use of automatic generators as electricity back up should be adequately
managed to avoid any unforeseen mistake due to negligence, enough and strategically located
fire extinguishers in accessible positions close to restaurant zones considered as high risk area.
Security and cash handling personnel within the restaurant perimeter is essential, entry points of
the restaurant are at a potential of risk of theft of cash or valuables (Monahan and Skeem, 2013,
p. 158). Deployment of professional security organization is critical for El Camino Cantina.
1.3. Essentials of Risk Management Process
Managing risk is essential to delivering a successful restaurant business objectives and targets.
Ranging from huge restaurant to a small indoor kitchen, El Camino Cantina integrates special
bringing together of aspects, which include business stakeholders and subsequently takes into
consideration a great level of confidence and risk involvement (Hilgart, Coles and Iredale, 2012).
The huge nature of experience relates to a restaurant, together with the unseen risks both

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financial and non-financial loss, and is becoming a great increase in risk management process
among stakeholders.
In how important are venue-based sites, states that restaurants vary in elements such as, size and
venue allocation, most restaurants operated through Australia requires a risk management
(Goldenberg et. al, 2011). It enables effective conditions to be implemented to eliminate the
hazards before the event and reaching the target of the business. The aim of El Camino Cantina
is to provide safe and enjoyable outdoor cooking without any risky incident that may cause harm.
Restaurant managers undertake the major obligation in managing the risk to maintain business
positive graph of profit margins and maximize safety and health of customers, workers and the
greater stakeholders. Properly evaluated risk management minimizes the probability of property
damage which can be costly to business and eat up most of the profit the restaurant had made
within the period (McFadden, Young and Markham, 2015).
Risk management is a critical stage in the hazard elimination process; entails analyzing every
preceding step over the course of the occurrence to make sure that the risks are fully controlled.
Risk management enables new risks to be pinpointed and managed prior before they affect the
business.
1.4. Recommendations
According to Monaham and Skeem (2013), in the resurgence of risk assessment, implementation
of a model, assessment must be carried out continuously to ensure that adequate plans and
security steps are implemented continuously over a period of time. El Camino Cantina restaurant
vulnerability level is not permanent but is subject to conditions in Australian community.
Evaluation of possible hazards and existing threats can be analyzed to examine threats to
encounter immediately or even prepare on the ways to meet them, and come up with contingency

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measures. Determining the nature and levels of threats enables the restaurant managers to
identify where to invest more time and resources (Zhang, Reynolds, Zhao, and Huang, 2010)
2.0 Venue Risk Analysis (VRA)
2.1. Principles and concepts of VR
Venue Risk Analysis is implemented in hospitality business to point out threats that have the
probability to produce adverse impacts to a business (Mayer, et. al 2012). VRA takes place in
three levels, the first level entails the identification of the risk and hazard factors, the second
level involves analysis and evaluation of threat within the environment, final level is determining
the best ways to remove the threat, or minimize the threat if it cannot be done away with
completely (Chan, Giraldo-Perez, Smith, and Blumstein, 2010)
2.2. Purpose of Venue Risk Analysis
Success of and business is evaluated in various methods, safety of the business is among the
major indicators. A proper venue risk analysis entails identifying hazards with the main aim of
eliminating it in the business to avoid losses both financial and non-financially (Allen, Baran and
Scott, 2010). Businesses require assessment, control and monitoring of risks to prevent adverse
effects by threats. . VRA estimates the potential effects of hazards to determine its rating, this
rating help the hospitality business to come up with a list of priorities for the risks. .
2.3. Recommendations
For El Camino Cantina to minimize the threats in the business, they are supposed to implement
the best measures for eliminating risks. There are several stages referred to as level of control
used to reduce and remove the risk (Van Griensven, et. Al, 2010).

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Elimination, this is achieved through completely uprooting the threat by modeling new
implementation designs within the hospitality business (Raymond, et. al). Substitution, this is
done by replacing risk materials or methods with lesser dangerous alternatives within the
hospitality business. Engineering, this is achieved by enclosing and isolating the risk factor
through design improvements within the business. Administrative reshuffle to ensure safe
operation management methods are brought in the system to introduce professional practices
within the restaurant.
2.4 Risk Ranking System (RRS)
Risks are commonly classified in various categories, the common classifications include:
Biological, which involves the living organisms within the environment such as insects, plants
and humans. Chemical risks which always relies on the dangerous nature of the chemicals within
the hospitality business. The ergonomic, which entails the repetitive movements, improper set up
of workstation among others. Physical properties such as radiations, magnetic fields, extreme
noise and high pressure equipment used in the business are also categorized among the risks
(Markham, Doran, and Young, 2014)
Psychosocial which involves stress and violence within the workstation and finally safety which
may include slipping or tripping hazards, inappropriate machine guarding and machine
breakdowns.
Massive changes in health conditions within the body structures, exposure to poor working
conditions lead to body diseases. The health effects that may be subject to hospitality business
workers include effects to the body function (Teasdale et. al, 2013).
The impacts are ranked according the rate of effect being felt.it may be adverse, showing that
pain is immediately gotten as the worker gets into the risk agent. Several effects can alter the

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effects to the body for several hours. Longer delays are possible including diseases developed
over a period of time due to exposure to various dangerous materials (Stavropoulos et. al, 2013).
When the risk is eliminated, the impacts may either be reversible or irreversible; the injuries
caused may heal or develop into untreatable disease.
2.4.1 Risk Ranking Table
Likelihood
High 5 5 5 5 5
Importance 4 4 4 4 4
Average 3 3 3 3 3
Modest 2 2 2 2 2
Petty 1 1 1 1 1
Consequence petty modest Average Major Catastrophic
2.4.2. Likelihood definitions
High Expected to occur in most circumstance
Strong likelihood of the threat occurring
Significant Previous occurrence is frequent
Moderate Occurrence not frequent
Low Few known occurrences
Negligible No prior record of incidents.

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2.5. Venue Risk Analysis (VRA) Foam
Risk and
Effect
Who might
be harmed
and how
Present
risk
rating
(Peak,
Average
, Petty)
Reduce by
risk by
What needed to be
done
The rate
of the
risk after
a proper
action is
taken.
Falls, trips
and slips
All the
public and
the staff
Medium Keeping
access areas
clear all
times
The Hospitality
business manager
to visit site before
the occurrence to
make sure that
every area is free
from hazards.
Petty
Workplace
transport
All workers
and the
public risk
serious,
probable
vulnerable
hurt if
struck by an
automobile
Medium All staff
trained by
qualified
people to
operate the
automobiles.
All vehicles
inspected
and
Coming up with a
one-way flow
system in the traffic
sector. Also
introducing and
enforcing the speed
limit system. Also,
there should be
arrangement to
Petty

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maintained
in relation to
the policy
collect toilet waste
and service the
toilets when the
public is not
seeing.
Collapse of
structures
All the
public and
the staff risk
major
injuries if
the
structures
fall.
Medium Marquees
and sages
need to be
erected by
qualified
contractors.
The
structures
should be
checked on
a daily basis
by qualified
personnel.
Weather
forecasting should
be checked on daily
basis. Check with
meteorologist
department highest
and strong winds
that structure can
resist safely. Make
a backup plan to
help to close the
structures in
extreme weather
conditions..
Petty
Hearing
Destruction
All
personnel
and the
public
Medium Workers
rotation
around quiet
and noisy
Warnings provided
to the public earlier
enough during the
sales of tickets and
Petty

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might
temporarily
or
permanently
suffer from
being
exposed to
loud music
especially
those staff
members
who work
for long
hours.
areas. Staff
trained in
noise risks
and the
protective
measures
needed.
Ensure the
event
equivalent
continuous
sound level
in any part
of the public
area, does
not exceed
107dB and
the peak
sound
pressure
level does
not exceed
140dB.
by signage at the
entrance. Staff
entering noisy
areas to be warned
of risks of hearing
damage and offered
ear plugs.

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Electrical
Danger
Staff and
public may
suffer
serious and
possibly
fatal electric
burns
injuries
from faulty
electrical
installation.
Medium All
electrical
systems
should be
constructed
and
maintained
in a
condition
suitable for
use in the
open air and
will be
protected as
necessary.
Fire safety If trapped
staff and the
public risk
serous
possibly
fatal
injuries
from smoke
Medium Fire risk
assessment
done and
fire
management
plan
guidance
made
Fire stewards to
check fire exits and
keep exits clear
during the events.
Petty/low

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inhalation
or burns
available to
the public
and staff.
Weather
such as
strong winds
and
scotching
sun
All staff and
the general
public may
suffer from
sun burns
and cold
rush.
Medium Making sure
there is
enough
water to
avoid
dehydration.
Both the public and
the staff advised to
bring proper
clothing to the
occurrence earlier
enough during
ticket booking and
by signage at the
entrance.
Petty/Low
Back injuries
caused by
heavy lifting
All
workforce
Medium Come up
with a list of
objects
which are
heavy to lift
containers
and event
toilets.
Employees to lift
the heavy objects in
pairs and advised
only to lift item if
they are okay in
doing it.
Introduction of the
use of forklift truck
Average
Medical
crisis
The staff
and the
public can
become
Medium There are
regulations
which need
to be
Seek advice on
programs for
medical emergency
cover with the local
Petty

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seriously
sick if the
quick first
aid
programs
are not
delivered on
time.
provided for
the members
of the
public. there
should be a
minimum of
two aiders
for an
occurrence
of up to 550
attendees.
regulations.

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