Recent storms and power outages in Tasmania over Father’s Day weekend were a harsh reminder of how vulnerable hospitality businesses are to natural disasters. For many, it meant lost revenue, spoiled stock, and missed bookings. While you can’t predict disasters, you can take steps to prepare, mitigate risks, and bounce back faster.
Here’s a guide to help hospitality business owners plan ahead, respond effectively, and even make the most of a challenging situation.
- Get the Right Insurance Coverage
Disaster-related disruptions are expensive, and without the right insurance, you could find yourself in a tough spot. Here are a few specific types of insurance worth considering for your hospitality business:
- Stock Insurance: Covers the cost of spoiled stock, such as food or drinks, due to power outages or equipment failure.
- Business Interruption Insurance: Helps recover lost income if you’re forced to close or reduce services because of a disaster, covering losses like cancelled bookings or closures.
- Public Liability Insurance: Protects you in case a customer or employee is injured on your premises during an emergency.
However, some businesses find the premiums prohibitively expensive and must weigh whether the coverage is worth it.
Speak to your insurance provider about your options, and make sure you’re clear on what’s covered in your policy. While it can seem like a big expense, not having the right coverage could cost you far more in the long run.
- Prepare for Power Outages
Power outages can lead to thousands of dollars in spoiled stock, especially for businesses that rely on refrigeration. Investing in a backup generator is a smart move — it keeps your fridges, freezers, and other critical equipment running during a blackout.
Another preventative step is installing surge protectors to shield expensive appliances from damage when the power returns. Yes, there’s an upfront cost involved, but it could save you significantly by protecting both your stock and your equipment.
- Have a Customer Communication Plan
When disaster strikes, clear communication with your customers is crucial. Use social media, your website, and email lists to let people know about any closures, changes to hours, or delays in service. Transparent communication helps maintain customer trust and keeps them in the loop.
Once the event has passed, follow up with a message letting customers know when you’re back in business. Offering a small discount or special offer can help encourage them to return quickly.
- Safety First: Keep Your Team and Customers Safe
It’s not just about protecting your business — it’s about keeping your staff and customers safe during an emergency. Make sure your team knows the procedures for an emergency, whether that’s evacuating the building or handling an equipment failure.
Keep essential safety items like fire extinguishers, first aid kits, and emergency lighting in accessible places, and regularly check they’re in working order.
- Mitigate Risks Before They Happen
Being proactive is key to preventing bigger issues during a disaster. Regularly maintain your building, appliances, and equipment to avoid breakdowns. Check your roof for leaks, ensure your electrical systems are up to date, and have a backup plan with reliable tradespeople in case of emergency repairs.
Establishing relationships with local emergency services or business networks can also be a great way to tap into resources during a disaster.
- Make the Most of a Bad Situation
Sometimes, the best way to cope with a disaster is to find an opportunity in the challenge. During the recent power outages, a local doughnut business, after having its market stall cancelled, donated stock to the Royal Hobart Hospital. This not only helped the community but also generated goodwill and positive publicity.
When disaster strikes, consider how your business can support the local community. Whether it’s donating unsellable stock or helping out in other ways, it can strengthen your relationship with customers and leave a lasting positive impression.
Final Thoughts
While you can’t control the weather, you can control how well your business responds. Preparing for disasters not only helps you financially but also ensures you can get back on your feet faster. By having a plan in place, communicating clearly, and thinking creatively, you can turn a potential crisis into an opportunity to strengthen your business and reputation.
Disasters will happen — but being ready for them will make all the difference.