Insurance Policy

Corporate involvement and training keep kitchens safe and premiums down

By Margaret Sheridan, Senior Editor -- Restaurants & Institutions, 9/1/2004

Kitchen safety doesn’t happen by accident. The risk of falls, cuts, burns and other injuries can be reduced—even eliminated—through training, regular accountability and teamwork.

In January 2002, Stephen Carley, president and CEO of Irvine, Calif.-based El Pollo Loco, met with Michael Simmons, the 320-unit chain’s director of risk management. Their agenda: Control the cost of workers’ compensation, which had begun to soar due to changes in California law. The chain’s premiums had jumped from $1.2 million in 2001 to $2.6 million in 2002, and “if we did nothing, our costs would hit $4.6 million in 2003 and $6.2 million in 2004,’’ says Carley.

Managers conduct daily, weekly and monthly inspections to ensure the safety of Wing Zone employees.

Simmons delivered an accident-prevention program with proactive claims management and post-loss controls to moderate the chain’s workers’ compensation expenses. The issue went from a back-of-the-house concern to a cost-control one, adds Carley.

Within a month, each unit designated a safety coordinator, usually the general manager, to inspect employees for slip-resistant shoes as well as personal protection such as gloves, aprons, goggles and back supports. Carley estimates that outfitting employees with the appropriate gear costs at most $300, depending on the worker’s specific job. In addition, all managers are required to attend a four-hour seminar on accident prevention and accident-reporting procedures.

90
Percent of all restaurant accidents that result from unsafe employee behavior. (California Association of Employers)

A knife-elimination initiative removed all but cleavers (to cut cooked chicken) from kitchens. Safety cutters and bag openers replaced knives. “No one has to use a knife to open a plastic bag,’’ says Simmons.

Regular inspections include unannounced visits by area supervisors and operations managers. It facilitates communication and raises employee awareness of the company’s commitment to kitchen safety.

Carley contracted with a healthcare provider so that serious accidents immediately can be reported to medical professionals for first-aid instructions or referred to a local medical center. The chain also created the position of field safety manager to do regular safety audits of sites.

The program has proved successful. Slip-and-fall accidents have dropped by 75%; knife removal, coupled with training in cutting procedures, reduced incidence of cuts by 84%. Overall, the frequency of accidents during the past three years was down by 77%.

Safety Zone
Wing Zone’s simple concept (a nine-item menu that comes out of kitchens outfitted with five fryers and two employees) does not exempt the 58-unit Atlanta-based chain from kitchen-safety awareness. “We designed it into the concept,’’ says Stan Friedman, executive vice president. “Luckily, we don’t have many accidents, even burns.’’

Cooking experience is not a prerequisite for hires and that increases the need for training and regular safety inspections. Fryers work off timers, which eliminates much of the guesswork from the cooking process and minimizes time spent monitoring the food at the fryer. In addition, nonskid mats are mandatory.

Wing Zone uses a secret-shopper service to monitor safety operations at each unit.

Once a unit opens, a series of safety inspections is made daily, weekly, and monthly, says Mason Bouterse, director of training. New franchisees and general managers attend an 11-day training program at headquarters, taught by Bouterse. A secret-shopper service reports on safety operations at each unit.

Lens Support
When Matt Prentice teaches kitchen safety to managers, he does it with numbers. “Accidents cost money,’’ says the president, founder and CEO of Unique Restaurant Corp., a Bingham Farms, Mich.-based multiconcept operator. The group of 12 restaurants, one bakery and 14 catering facilities paid $270,000 in annual workers’ compensation premiums in 2003. This year, the amount has dropped to $180,000, the result of comparison shopping for lower rates and the ability to show potential insurers the company’s excellent kitchen-safety records.

“I talk dollars because managers are on bonus programs or they’re partners with equity in their business. They pay attention,’’ Prentice explains.

He also uses workplace stories to illustrate his points. “Years ago, a box of trays weighing 3 pounds fell off a shelf and injured a deli worker. That accident cost us $50,000 in workers’ comp. It was a lesson. We learned to document every detail instantly, get witnesses and take photos,’’ says Prentice. Stocking every site with disposable cameras saved the company from a potential $150,000 lawsuit in a slip-and-fall incident. “The photo proved the floor was dry and free of spills,’’ says Prentice. “Document everything immediately.’’