Tag Archives: Restaurants

Hospitality Industry Fire Risks: New York Restaurant Kitchen Workers Seriously Burned As "Gasoline Stored In Container" Spills And Ignites

“…the sushi chef… had asked a dishwasher to carry a five-gallon soy sauce container filled with gasoline through the kitchen to his car…The gasoline (had been acquired) a day earlier from an acquaintance and had been stored in the restaurant’s basement…as the dishwasher was carrying the gasoline through the kitchen, it spilled and ignited. Another chef was immediately engulfed in fire, receiving first- and second-degree burns to his face, neck, arms and legs before bystanders extinguished the flames…”

A sushi chef has been arrested after a soy sauce container he had filled with gasoline ignited at a restaurant close to Sutton Place in Manhattan, starting a blaze that severely injured three people.

The fire, which occurred about 10 p.m. Friday, raced through the kitchen of Eno Asian Bistro and Lounge on 1066 First Avenue at East 58th Street, the Fire Department said.

A busboy and another woman also sustained second- and third-degree burns to their legs. As of Saturday, the victims were still recovering at NewYork-Presbyterian/Weill Cornell Medical Center.

For more:  http://cityroom.blogs.nytimes.com/2012/11/10/chef-charged-in-fire-at-restaurant/

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Filed under Fire, Insurance, Labor Issues, Liability, Maintenance, Risk Management

Hospitality Industry Property Risks: Iowa Restaurant Fire Burns "Undetected For More Than An Hour"; More Than $450,000 In Damage

Fire fighters crawled through the restaurant and extinguished small fires and burning embers throughout the interior…They spent hours on scene dealing with hot spots in the above-ceiling crawl space and attic of the one-story building…the building didn’t have a sprinkler system and damage is estimated at more than $450,000.

A fire in a Des Moines restaurant likely burned for more than an hour before being detected and it took firefighters several more hours to completely extinguish all the hot spots, officials said. Crews responded to Montana Mike’s, 5030 NE 14th St., around 5:10 a.m. Tuesday to find dark gray smoke from floor to ceiling, fire officials said.

Heavy smoke and heat made seeing initially impossible and limited the use of a thermal imaging camera, officials said.

The fire started in the back of the restaurant, near office equipment, storage and laundry machines, authorities said. The cause is still under investigation.

For more:  http://blogs.desmoinesregister.com/dmr/index.php/2012/11/07/fire-burns-undetected-for-an-hour-at-local-restaraunt/article?nclick_check=1

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Filed under Fire, Insurance, Liability, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Employment Risks: Hotels And Restaurant Groups Begin Limiting Employee Hours To Below 30 Hours Per Week To Avoid Health-Care Law Requirements

Several restaurants, hotels and retailers have started or are preparing to limit schedules of hourly workers to below 30 hours a week. That is the threshold at which large employers in 2014 would have to offer workers a minimum level of insurance or pay a penalty starting at $2,000 for each worker.

The shift is one of the first significant steps by employers to avoid requirements under the health-care law, and whether the trend continues hinges on Tuesday’s election results. Republican presidential nominee Mitt Romney has pledged to overturn the Affordable Care Act, although he would face obstacles doing so.

Pillar Hotels & Resorts this summer began to focus more on hiring part-time workers among its 5,500 employees, after the Supreme Court upheld the health-care overhaul, said Chief Executive Chris Russell. The company has 210 franchise hotels, under the Sheraton, Fairfield Inns, Hampton Inns and Holiday Inns brands.

“The tendency is to say, ‘Let me fill this position with a 40-hour-a-week employee.’ “Mr. Russell said. “I think we have to think differently.”

Pillar offers health insurance to employees who work 32 hours a week or more, but only half take it, and Mr. Russell wants to limit his exposure to rising health-care costs. He said he planned to pursue new segments of the population, such as senior citizens, to find workers willing to accept part-time employment.

He described the shift as a “cultural change” toward hiring more part-timers and not a prohibition against hiring full-timers.

CKE Restaurants Inc., parent of the Carl’s Jr. and Hardee’s burger chains, began two months ago to hire part-time workers to replace full-time employees who left, said Andy Puzder, CEO of the Carpinteria, Calif., company. CKE, which is owned by private-equity firm Apollo Management LP,  offers limited-benefit plans to all restaurant employees, but the federal government won’t allow those policies to be sold starting in 2014 because of low caps on payouts. Mr. Puzder said he has advised Mr. Romney’s campaign on economic issues in an unpaid capacity.

For more:  http://online.wsj.com/article/SB10001424052970204707104578094941709047834.html

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Filed under Health, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Employment Risks: Hawaiian Restaurant Group Sued By EEOC For "Rampant Sexual Harassment Of Female Employees"

In its lawsuit, the EEOC asserts that a class of at least nine female servers and bartenders were repeatedly bombarded with sexual propositions, explicit sexual remarks, groping, grabbing, and exposure of genital areas by male managers, and even ordered to perform sexual favors for high-level Señor Frog officials. 

Señor Frog’s, a popular chain of Mexican-themed restaurants and bars, violated federal law by allowing the rampant sexual harassment of its female employees in Honolulu by high-level officials including the company owner, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit it filed today against both Señor Frog’s and Altres, Inc.  Altres, a Hawaiian staffing company, was contracted by Señor Frog’s to provide human resources services and oversee the company’s non-management staff at the Señor Frog’s restaurant & bar in Honolulu.

The widespread sexual harassment was out of control, stemming from Señor Frog’s owner himself, who permitted other Honolulu restaurant managers and supervisors to do the same, according to the EEOC.  Women were also treated differently with respect to being passed over for promotions, obtaining less favorable shifts and earning less than their male counterparts.

The EEOC contends that at least one of the victims was compelled to quit as a result, while others were disciplined or had their hours cut in retaliation for complaining of the harassment and discrimination.  As the joint employer, the EEOC claims that Altres is also liable for the hostile work environment endured by the Señor Frog’s staff, many of whom were employed by Altres on paper, according to company records.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964.  The EEOC filed suit (EEOC v. La Rana Hawaii, LLC dba Señor Frog’s & Altres, Inc., Case No. CV-11-00799 LEK BMK) after first attempting to reach a pre-litigation settlement through its conciliation process.  The EEOC’s suit seeks all available relief, including lost wages, front pay and compensatory and punitive damages for the class of women.  Substantial remedies, including policy changes and staff training, are also being sought by the EEOC in order to prevent and appropriately address future instances of sexual harassment, discrimination and retaliation.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/11-2-12.cfm

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Filed under Insurance, Labor Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: Restaurants And Bars Are Being Sued For "Illegally Playing Licensed Music" By Major Protective-Rights Organizations; "Thousands Of Dollars Per Violated Song"

“…Broadcast Music, Inc. has sued hundreds of establishments across the country, including bars and restaurants in southwest Ohio, for playing BMI-licensed songs without a proper license…a search of civil court records shows that BMI Inc. — one of three main protective-rights organizations — usually settles out of court or gets a summary judgement and, in either case, collects thousands of dollars per violated song…”

Dozens of Ohio businesses have been sued and made to pay tens of thousands of dollars for playing music without proper licensing. The lawsuits are part of a concerted effort by such organizations to enforce copyrights and could serve as a warning to other businesses illegally playing licensed music.

“The entertainment industry is in a frenzy not knowing how to protect – put fences around — their copyrights in the digital age, because there’s nothing really that can preclude a perfect digital copy,” said University of Dayton law professor Tracy Reilly, who teaches courses about real property and intellectual property.

The Pub at The Greene in Beavercreek paid more than $30,000 to BMI after a Southern Ohio United States District Court civil case for playing four BMI-licensed songs such as Van Morrison’s Brown Eyed Girl and Johnny Cash’s I Walk The Line.

“How many times do you go into a restaurant and hear them playing a radio station, for example,” said attorney David Rickert, who represented The Pub but could not speak directly about the case due to a confidentiality clause. “Technically, you need a license for that. I think it’s something people just aren’t aware of. Now they’re starting to crack down a little bit on it.”

For more:  http://www.daytondailynews.com/news/news/crime-law/area-bars-sued-for-lack-of-music-licenses/nSsqX/

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Filed under Insurance, Liability, Management And Ownership, Risk Management

Hospitality Industry Property Risks: Nevada Restaurant Fire Caused By "Overheated Commercial Stove" That Led To Wood In Attic Catching Fire; $75,000 In Damage

“…Investigators say over the last year or so, overheating from a commercial stove led heat to creep up a wall and into the attic of the building, getting wood hot enough to finally catch fire…”

An overheated stove led to the fire that caused $75,000 in damages to a Genoa restaurant Friday morning.

Douglas County investigators say shortly before 9AM, they got the call about the fire at the Genoa Station Grill and Bar, a business about 18 months old near Genoa Town Hall.

The fire broke out in the kitchen area and was contained to the kitchen and attic area. SR 206, which runs through Genoa , was closed for about two hours. No one was hurt.

For more:  http://www.kolotv.com/home/headlines/Fire-Damages-Genoa-Restaurant-176039641.html

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Filed under Claims, Fire, Insurance, Maintenance, Management And Ownership

Hospitality Industry Property Risks: Iowa Restaurant Kitchen Fire Starts In "Under-The-Counter Appliance"; $40,000 In Structural And Equipment Damage

“…The cause…was believed to derive from a small under-the-counter appliance in the kitchen… total assessed damage is around $40,000, half in structural damage and another $20,000 in restaurant contents, including cooking equipment and televisions…”

A Wednesday morning fire caused an Iowa City late-night Greek-American restaurant to close suddenly. According to Iowa City Fire Department Battalion Chief Brian Greer, a small kitchen fire began in Mega Bite at the Towers apartment complex at 335 S. Gilbert St. at approximately 10:08 a.m.

“We’re really grateful the sprinkler system was in place,” Greer said. “It took less than 15 minutes for the fire to be out.”

The building, owned by Michael’s Properties, which owns several other buildings downtown, is worth well over $4 million and the damage was mostly contained to Mega Bite, Greer said.

Minor water and smoke damage resulted in the apartments on the first floor as well.

For more:  http://www.dailyiowan.com/2012/10/25/Metro/30543.html

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Filed under Claims, Fire, Insurance, Maintenance, Management And Ownership

Hospitality Industry Insurance Risks: Restaurant Operators Face "Financial Hit" From New Health Insurance Benefit Programs That Take Effect In 2014

Under the Patient Protection and Affordable Care Act, companies with 50 or more full-time eligible workers must either provide basic coverage by Jan. 1, 2014, or face fines of $2,000 per employee. A full-time employee is defined as one averaging 30 or more hours per week over a 60-day period.

“We will have a financial hit,” said CEO Victor Ansara. “We first thought it was going to be $300,000, but maybe only $100,000 to $200,000. We just don’t know how many of our employees in their 20s, who are pretty healthy, will want coverage.”

Farmington Hills-based Ansara Restaurant Group, which operates 22 Red Robin outlets and five other restaurants in Michigan and northern Ohio, is bracing financially to expand its health insurance benefit program by as many as 665 full-time workers to accommodate expected federal health care reform.

The first 30 employees are excluded from the penalty. For example, an employer with 75 employees would pay the penalty for 45 workers, or $90,000.

Eligible employees that reject insurance coverage by their employer would have to pay a $95 tax, or 1 percent of income, whichever is greater, in 2014. The tax rises to $325 in 2015 and to a maximum of $695, or 2 percent of income, in 2016. Family coverage taxes would be about three times higher in those years. The penalty is estimated to raise $6.9 billion in 2016, said the Congressional Budget Office.

Ansara said his company covers about 130 management staff with various plans from Blue Cross Blue Shield of Michigan and Blue Care Network. Only about 35 of its estimated 350 eligible hourly workers have opted for the coverage, he said.

“It is very difficult to plan when we don’t know what our health care costs are going to be in 2014,” he said. “To comply with the regulation, we have to offer coverage to all full-time eligible employees.”

Of Ansara’s 2,300 employees, up to 700 hourly workers could become eligible for health insurance coverage, he said.

For more: http://www.crainsdetroit.com/article/20121021/SUB01/310219956/red-robin-group-among-restaurants-bracing-for-health-insurance-reform#

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Filed under Health, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: Florida-Based Restaurant Group Faces Five Separate "Federal Labor Law Class-Action Lawsuits"; Employees Required To Work "Off The Clock" And Skip Required Breaks

“…Lawsuits filed by the Mexican-American Legal and Education Fund accuse Darden Restaurants—which owns the Capital Grille, Red Lobster and Olive Garden chains—of violating state and federal labor laws…the suits claim the restaurants regularly ask employees to work off the clock, skip legally required breaks and report to work when sick…”

The world’s largest full-service restaurant ownership company faces five separate class-action lawsuits filed by a group that works to protect restaurant workers’ rights.

The litigation began as a single class-action lawsuit filed in federal court in Chicago, with state class-action claims covering workers in Illinois, as well as California, Florida, Maryland and New York. Eventually, the lawsuit was severed into five jurisdictions due to the large size of the classes and the complexity of the various state claims. Five regional U.S. District Courts will hear the cases.

The lawsuits were initiated by the Restaurant Opportunities Cen­­ters United, which seeks to improve wages and working conditions for low-wage restaurant workers.

For more:  http://www.businessmanagementdaily.com/33010/worker-advocates-cook-up-five-suits-against-restaurant-group

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Filed under Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Training

Hospitality Industry Health Risks: North Carolina Restaurant Settles "Food Contamination" Class-Action Lawsuit For $375,000; Hundreds Had To Be Vaccinated For Hepatitis Virus

“…the lawsuit alleged that the restaurant chain exposed customers to potentially contaminated food or people, cost them wages and medical expenses, and caused fear and physical pain…a $375,000 fund has been set up by the restaurant’s parent company… to settle a class-action lawsuit…”

A lawsuit has been settled involving hundreds of people who had to be vaccinated after eating at a Fayetteville restaurant last year. The Fayetteville Observer reported those who were immunized after eating at the Olive Garden restaurant are eligible for payments of up to $250.

Hundreds of people got vaccinations after learning that one of the restaurant’s workers had tested positive for the virus, which causes liver inflammation.

Florida-based GMRI denied any wrongdoing but said it wanted to settle to end the litigation.

For more:  http://www.northjersey.com/news/health/174592761.html

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Filed under Food Illnesses, Guest Issues, Health, Insurance, Labor Issues, Liability, Management And Ownership