Category Archives: Risk Management

by | January 31, 2013 · 7:43 am

Hospitality Industry Safety Risks: California Hotel Explosion And Fire Caused By “Illicit Drug-Making Operation” In Guest Room; Walls “Blown Out” And Property Evacuated

“…all guests were evacuated and it took firefighters about 35 minutes to fully contain the flames which had reached into the third story and the attic of the hotel…Because of the drug-making substances that had caused Hotel Explosionthe hotel explosion, a hazardous-materials crew and the U.S. Drug Enforcement Administration were called in to investigate the illegal drug-making operation…”

An apparent drug-making operation in a hotel room caused a hotel explosion in San Diego on Wednesday shortly after 11 a.m. The explosion which happened in one of the hotel rooms blew out several windows and three walls, reported San Diego’s 10News on Jan. 30, 2013.

“An explosion apparently caused by an illicit drug-making process blew out walls and windows at a Midway-area hotel Wednesday and set part of it ablaze, leaving a young man gravely burned and two other people less severely hurt, authorities reported.”

The hotel explosion occurred in a hotel guest room on the second floor at the three-story Heritage Inn on Channel Way, just south of San Diego’s Interstate 8.

The man who was gravely injured during the hotel explosion had apparently lit a cigarette while using a butane spray can to try to extract hashish oil from marijuana. The flame from his lighter ignited the chemical fumes and caused them to detonate powerfully. The man who is in his early 20s suffered life-threatening burns.

Hash oil is made by packing finely ground stems and leaves of marijuana plants in a pipe and pouring butane through it. The liquid typically is then cooked on a stove to separate the butane. Hash oil averages about 15 percent THC, the chief intoxicant in marijuana. A drop or two is about as potent as a marijuana cigarette.

For more:  http://www.examiner.com/article/illegal-drug-making-hotel-room-causes-hotel-explosion-san-diego

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by | January 30, 2013 · 7:59 am

Hospitality Industry Legal Risks: Michigan Restaurant Group Settles “Class-Action Lawsuit” Alleging “False Advertising Of Halal Food Items”

“…(plaintiff’s) attorney alleged that after the restaurant ran out of Halal chicken, it sold non-Halal chicken…an investigation found that the restaurant had sold non-Halal food masquerading as Halal food “on Hospitality Industry Class Action Lawsuitsmany occasions.” The two filed a class action lawsuit in Wayne County Circuit Court in November 2011…”

McDonald’s and one of its franchises agreed to a $700,000 settlement in a lawsuit claiming that it falsely advertised some of its food as halal. Ahmed Ahmed, a Muslim man from Dearborn Heights, alleged that the chicken sandwich he ordered from the McDonald’s on Ford Road in Dearborn in September 2011 did not meet Islamic dietary standards, despite the franchise’s advertisements that it sells Halal chicken.

McDonald’s and Finley’s Management Co, which owns the franchise, agreed on January 18 to pay the $700,000, which will be split between Ahmed, his lawyers, a health clinic in Detroit and the Arab American National Museum in Dearborn. McDonald’s and Finley’s deny any liability, but say the settlement is in their best interest.

For more:  http://michiganjournal.org/2013/01/29/dearborn-mcdonalds-makes-settlement-in-non-halal-chicken-sandwich-lawsuit/

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by | January 28, 2013 · 10:29 am

Hospitality Industry Health Risks: Studies Show Restaurants Use Cheaper Fish And Mislabel As Red Snapper And White Tuna; Cheaper Fish Substitutes Are Higher Risks For Food Poisoning

In addition to permitting aquaculture operations to use drugs that are banned by other countries, and permits the sale of species that other countries don’t, the U.S. only minimally oversees imports. A Johns Hopkins study FDA food inspectionsshows that the U.S. inspects a miniscule 2 percent of the seafood that comes into the country. By comparison, Japan inspects 18 percent and the European Union inspects 50 percent.

If you’re a fish eater and you keep an eye on the news, you already know that the “red snapper” special at your local restaurant is probably mislabeled. For years, restaurants have been substituting cheaper, more common species like tilapia for the famed red snapper. Last year, however, DNA analyses showed that the problem is more widespread than anyone suspected: In Los Angeles, New York, New Jersey and Connecticut, studies showed that 100 percent of restaurants were serving cheaper fish and mislabeling them as red snapper. Similarly, white tuna, yellowtail, Dover sole and wild-caught salmon were also often substituted for other species.

Most of the time, price gouging is the only harm that comes from such mislabeling. Sometimes, however, the danger might be a bit higher. Recently, the U.S. Pharmacopeial Convention noted that much of the alleged “white tuna” served in sushi restaurants may actually be escolar, also known as “snake mackerel.” A cheap fish that may cause severe food poisoning with, shall we say, explosive results, escolar is banned in some countries.

For more:  http://www.dailyfinance.com/2013/01/26/fish-food-poisoning-seafood/

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by | January 26, 2013 · 7:57 am

Hospitality Industry Theft Risks: Pennsylvania Restaurant Manager Charged With Stealing Over $160,000; Made “Unauthorized ATM Withdrawals, Credit Card Purchases”

“…a certified public accountant’s review found that (he) made a string of unauthorized ATM withdrawals, unauthorized credit card purchases and unauthorized check card purchases totaling $163,601 from the employee theftbusiness accounts of Cosmopolitan…in addition to dinner cruises and visits to a strip club, (he) allegedly spent the money on household items at a retail store…”

A former general manager of Cosmopolitan in Allentown allegedly stole $163,601 from the restaurant and spent it on things like dinner cruises and visits to a strip club.

Cosmopolitan opened in October 2010. Fortunato was hired in September 2010 and promoted to general manager about a month later, District Attorney Jim Martin’s office said today in announcing the charges.

Fortunato’s responsibilities included overseeing the daily operations of the restaurant, handling employee payroll, paying bills to suppliers and collecting receipts for the business.

Fortunato also was given check-signing authority for the restaurant’s various bank accounts and ATM/debit card account at Wells Fargo Bank, a Visa card, an American Express account and access to cash receipts at the restaurant, Martin’s office said.

His responsibilities included using any of the accounts, but only for operations of the restaurant, according to the district attorney’s office.

Last June, Cosmopolitan co-owner Myron Haydt was reviewing the restaurant’s financial records and found a series of suspected unauthorized purchases by Fortunato, according to the statement.

For more: http://www.lehighvalleylive.com/allentown/index.ssf/2013/01/former_manager_of_allentowns_c.html

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by | January 25, 2013 · 9:21 am

Hospitality Industry Property Risks: New York Hotel And Restaurant Suffers “Significant Water Damage” After Frozen Pipe Bursts; $200,000 Damage From Third Floor To Basement

“…A water pipe had frozen and burst early Wednesday morning…the pipe was connected to the facility’s sprinkler system and the malfunction triggered a response from the Geneseo Fire Department…The pipe burst Hotel Water Damageon the third floor, pouring water into a guest room and working its way down to the basement. There was “significant damage” in several parts of the building including two parlors, dining rooms and guest rooms and spaces above and below the rooms…”

The Big Tree Inn, 46 Main St., remains closed after a water pipe burst on Wednesday, flooding several areas of the landmark building and causing significant damage from the third floor to the basement. Big Tree Inn will remain closed through Friday, but Scott is hopeful that at least part of the facility will be able to open some time during the weekend.

Scott estimated repairing the damage will cost $200,000 or more. The restaurant does have insurance.

Facility managers were alerted to a problem by a guest who reported hearing what was believed to be a small leak. An investigation revealed the bigger problem.

For more:  http://thelcn.com/2013/01/24/burst-water-pipe-causes-significant-damage-at-big-tree-inn/

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by | January 21, 2013 · 7:25 am

Hospitality Industry Property Risks: New Jersey Restaurant Fire Starts In Basement, Causing Heavy Interior Damage; Renovation “Crawl Spaces And Voids” Help Flames Spread

“…the structure had been renovated a number of times, creating created many crawl spaces and voids thorough which the flames spread. That made it difficult for firefighters to put out the fire…the fire appeared Restaurant Fireto have started near a storage room in the basement, burning through the first floor and then extending to the attic…”

A Goffle Road restaurant may be temporarily shuttered after a three-alarm fire spread from the basement to the attic early Sunday morning, causing significant damage to the interior, the borough’s fire chief said. Local volunteer firefighters rushed to La Cantina Restaurant shortly after 12:40 a.m. on Sunday, after a passerby walked into Engine Company No. 3 and told them that the restaurant was on fire, Fire Chief Joseph Speranza said.

About 30 to 35 firefighters responded to the Mexican restaurant — less than a quarter mile from the firehouse — to find heavy smoke coming from the building, Speranza said.

Firefighters battled the main blaze for about an hour and forty-five minutes, but spent a good portion of the morning chasing hot spots, he said.

For more:  http://www.northjersey.com/hawthorne/La_Cantina_Restaurant_in_Hawthorne_might_be_temporarily_shuttered_after_fire.html

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by | January 20, 2013 · 8:52 am

Hospitality Industry Employment Risks: Hotels And Restaurants Providing “Paid Sick Leave” Benefits Reduce Employee Illnesses, Work-Related Injuries And Turnover According To Latest Studies

“…it (is) better for an employee to call in sick, take care of their illness and not contaminate the other staff. The number of employees struggling to work while sick was drastically reduced. The H1N1 virus in 2009 Paid Sick Leave In Hospitality Industrydemonstrated the value of keeping sick employees out of the workplace…And best of all, according to the Centers for Disease Control, workers with paid sick leave are 28 percent less likely to suffer work-related injuries. People in construction, restaurants or hospitals who do physically demanding jobs are more likely to injure themselves (or someone else) if they are working while sick, weak and fatigued…”

The Bureau of Labor Statistics tells us that 39 percent of people employed in private industry do not have paid sick leave as a benefit.

And 81 percent of service workers earning $10.50 or less have no paid sick leave. These are the people behind the cash register, serving you food in a restaurant, cleaning offices and hotel rooms and handing you your ticket when you go out to see a movie.

The information comes from studies conducted by the Centers for Disease Control, the Bureau of Labor Statistics and the Women’s Institute of Policy Research study of San Francisco’s paid sick leave ordinance. Before San Francisco enacted its ordinance in 2007, the restaurants and mom-and-pop businesses fought hard to prevent it. They predicted the cost of paid sick days would put them out of business. In 2011 a detailed study was done and employers are happy their fears were not realized. There was no discernible increase in payroll costs.

Turnover decreased because employees didn’t need to change jobs to get paid sick leave. The city ordinance requiring paid sick leave leveled the field for all employers, and good employees stayed in place longer.

For more:  http://union-bulletin.com/news/2013/jan/19/sick-pay-benefits-employers-bottom-lines/

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by | January 19, 2013 · 8:17 am

Hospitality Industry Employment Risks: Wisconsin Restaurant Settles EEOC “Sexual Harassment And Retaliation Lawsuit” For $41,000; Companies Must Take “Immediate And Effective Action To Stop It”

“The Supreme Court has held that when an employer learns of sexual harassment, it must take immediate and effective action to stop it…Employers who don’t protect their workers should know that the federal EEOCgovernment will enforce the national policy against sexual abuse in the workplace…retaliation complaints have been the fastest-increasing type of complaint filed with the EEOC over the past 10 years…”

A Merrill, Wis., restaurant will pay $41,000 and furnish other relief  under a consent decree entered by the federal court in a sexual harassment and retaliation lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.

According to the EEOC’s suit (EEOC and Sherry L. Brown v. Merrill Pine Ridge LLC, et al., No. 3:11-cv-589), one of the cooks at New Pine Ridge restaurant, Shahi N. Selmani, created a sexually hostile work environment when he repeatedly made crude remarks to waitresses and grabbed their breasts.  The EEOC alleged that, despite the women’s complaints, restaurant owner Qemal Alimi did not stop Selmani’s harassment and instead fired some of the waitresses in retaliation for their complaints.

Sexual harassment and retaliation for complaining about it violate Title VII of the Civil Rights Act of 1964.  The EEOC filed suit in August 2011 after first attempting to reach a pre-litigation settlement through its conciliation process.

Selmani did not stop working for the restaurant until months after criminal charges were filed against him.  Eventually he pled no contest on Dec. 9, 2010 in Lincoln County Circuit Court (Case Nos. 2009CM25 and 2009CM101) to having committed Class A misdemeanor battery against three waitresses.  Charges of fourth-degree sexual assault, bail jumping and disorderly conduct were dismissed but “read into” the record of his conviction.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/1-17-13a.cfm

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by | January 14, 2013 · 8:31 am

Hospitality Industry Property Risks: Texas Restaurant “Natural Gas Fire” Caused By Faulty Water Heater; Damage Estimated At $15,000

“…When firefighters got to the scene, the cook there told them that he heard the hot water heater pop and Restaurant Firethat’s when they saw the fire… Crews immediately evacuated the restaurant and the surrounding businesses, but they also had to cut the gas off before they could put out the fire, which was located in the restaurant’s mechanical room…”

Fire officials said a hot water heater is to blame for a natural gas fire at a Chinese restaurant on the city’s northwest side. The fire broke out at about 4:18 p.m. Sunday afternoon at the Hunan Chinese Restaurant.

Fire officials said this natural gas fire caused about $15,000 worth of damage.

Nobody was hurt in the fire and the surrounding businesses opened back up later that Sunday.

For more:  http://www.ksat.com/news/Officials-Water-heater-causes-fire-at-Chinese-restaurant/-/478452/18116632/-/dt62eg/-/index.html

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by | January 12, 2013 · 7:49 am

Hospitality Industry Legal Risks: Restaurant Franchisee Settles EEOC “Sexual Harassment And Retaliation Lawsuit” For $2.5 Million; Managers Made Working Conditions Intolerable

The EEOC’s suit charged that Carrols subjected a class of women – including many teenagers – to egregious sexual harassment at Burger King locations throughout the Midwest, Southeast, and Northeast. EEOC alleged that the harassment, which ranged from obscene comments, jokes, and propositions to unwanted touching, EEOCexposure of genitalia, strip searches, stalking, and even rape, was perpetrated by managers in the majority of cases. According to the EEOC, Carrols also retaliated against some of the women by cutting their hours, manufacturing discipline against them, and even firing them, while it forced more women to quit because the harassment made their working conditions intolerable.

Carrols Corporation, the world’s largest Burger King franchisee, will pay $2.5 million and take significant remedial steps to settle a sexual harassment and retaliation lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today. The lawsuit alleged discrimination against 89 female employees around the country, many of whom were teenagers when they worked for Carrols.

Sexual harassment and retaliation for complaining about it violate Title VII of the Civil Rights Act of 1964. The EEOC filed suit (Civil Action No. 98-cv-01772 FWS/TWD in U.S. District Court for the Northern District of New York) after first attempting to reach a voluntary settlement.

Under the terms of the publicly-filed consent decree resolving the case, Carrols will pay $2.5 million in compensatory damages and lost wages to the 89 victims. It also will implement a number of measures to increase employees’ awareness of Carrols’ anti-harassment policies and to improve Carrols’ response to complaints brought forward under those policies. Those measures include enhanced training for Carrols’ managers in preventing and responding to harassment; improved mechanisms for tracking harassment complaints; notices posted in all domestic Carrols Burger King locations informing employees about the lawsuit’s resolution and their rights under federal anti-discrimination laws; and an injunction prohibiting further harassment and retaliation.

For more: http://www.eeoc.gov/eeoc/newsroom/release/1-9-13.cfm

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