Handling a Health Crisis
From industry giants to regional players, no restaurant brand can count itself exempt from the threat of foodborne illnesses.
The need for speed in a foodborne illness outbreak is paramount. Begin an immediate investigation, but don’t give up control, says Steven Fink (r.), president of Los Angeles-based crisis management firm Lexicon Communications. “Let law enforcement or food-safety regulators do their jobs, but don’t abdicate responsibility for managing your own crisis. But put a human face out there to keep consumers constantly informed,” he advises. The object is to identify the source of the problem as quickly as possible, then communicate what the brand (or its individual units) is doing to address the current problem and prevent future incidents.
Major incidents should be handled by corporate. However, if corporate is mum, franchise developers may have to take the lead, says Fink. “Invite the media in. Tell them what you’re doing in your units or region. Show them your food is safe,” he advises.
That strategy helped Southern California chain Pat & Oscar’s recover from an E. coli outbreak, says Fink, whose firm was called in to take charge of crisis management and communications.
Within 24 hours, the chain launched its own investigation; identified the source of contamination as an outside supplier; announced it had replaced the supplier; instituted additional washing procedures for vegetables; and gave TV crews and reporters free rein to investigate and film both the front of the house and back of its restaurants.
P&O bought full-page ads offering free food for three days. The offer generated lines with two-hour waits, serving more than 55,000 people. Media coverage carried on for two days as entertainers were brought in to amuse the crowds and customers ordered anything on the menu for free. Business increased 135 percent to 140 percent over pre-crisis levels as a result, says Fink. Sales figures began to rebound immediately and continued growing until they surpassed monthly averages prior to the outbreak.
For franchise developers, Fink says the first line of defense is the franchise contract. His recommendations include:
- Ask to see the corporate crisis-management plan.
- Evaluate what corporate will do to protect the brand and what it will to protect the franchisees’ investment. Find out who takes control of the crisis, who may talk with the media and how corporate staff and franchise developers will cooperate.
- Ask for a relief clause. If corporate management is slow to respond to a crisis, make sure you as the developer or a franchise association can take action without recrimination or violating your agreement.