4. 4
SAFER, SMARTER KITCHENS
Speakers
DAVID EHA
Director, National
Accounts
Restaurant Technologies
MIKE KEELER
Former Head of Safety
Yum! Brands and
Bloomin’ Brands
RICK BORCHERS
President & COO
DavCo Restaurants
DAVID NORMAN
CEO
DavCo Restaurants
6. 6
Back-of-House
Accounts for Nearly
60% of Labor Costs
Source: John R. Walker, The Restaurant: From
Concept to Operation, Fifth Edition (2007)
Back-of-House Inefficiencies
7. 7
2017 Minimum Wage Increases
Beneficial to obtain new talent and retain current labor force but
strategic planning is needed to offset costs.
9. 9
Safety is the most
overlooked area for
improvement in the back-
of-house – but it has a big
impact on operations,
retention and morale
According to studies from OSHA,
for every $1 spent on safety
programs, businesses can save $4
to $6 in costs associated with
injuries and fatalities.
10. 10
Slippery Slope of Increasing Cost
Frequency Cost
• Average-size restaurant has 4
claims per year
– 1 lost time (indemnity) claims
– 3 minor (medical-only claims)
• Highly concentrated – Many
restaurants go all year with no
injuries – but 20% of locations =
55% of claims
• Average medical only
claim is minor:
– $1,036 per claim
• Lost time claims are
expensive on average:
– $42,586 per claim
Average risk for average restaurant: $46,000 per year
Source: NCCI Restaurant Data – Fully Developed Cost, York Risk Services, Willis Towers Watson