From left, US Restaurants Inc. Chief Financial Officer Mike Kadelski, Tamer Mokhamed Abdu and Chief Operating Officer Greg Winans discuss the North Wales BK’s success in implementing the company’s safety program. The location has had no claims in 12 years.
Cuts. Burns. Back injuries. Slip-and-falls. Rising premiums. Fifteen years ago, US Restaurants Inc. decided something must be done in the wake of losses driving up insurance costs. The solution? An overall loss control program designed to improve safety and drive down costs.
“It originated in our corporate office in 2002,” explained Mike Kadelski, US Restaurants chief financial officer. “We had reached a point in the early 2000s where our losses were too high. We needed to put together a comprehensive, all-inclusive program to rein in the losses and bring down our premiums.”
The company has spent the last 15 years building initiatives that have succeeded in doing just what US Restaurants set out to accomplish. The thorough safety program consists of various components that are reinforced through awareness, recognition and incentives.
A standout feature of US Restaurants’ safety standards is its dedication to slip-resistant footwear. Slip-and-falls were a major part of the company’s losses. Now, employees are not permitted to work without the proper shoes and it is strictly enforced.
During monthly safety meetings, US Restaurants leadership (COO, CFO, HR director, training director, staff claims manager) meet with various district and general managers, along with the insurance company loss control specialist to discuss what is happening with regard to company safety. All incidents that occurred in the prior month are thoroughly discussed and analyzed. “There’s brainstorming that goes on if there’s an issue that comes up that needs to be addressed on a companywide basis,” Kadelski said. “How do to make that situation better? Potential solutions are discussed and implemented. COO Greg Winans is very involved in the entire process and integral in implementing all potential solutions.”
What the general managers bring to the meetings continues to impress – even after 15 years. “Not only do they bring the day-to-day operations perspective, but they’re very engaged and active in the discussions. They bring great value to the conversation,” said Kadelski.
Another benefit of the monthly meetings is a deduction in workers’ compensation premiums. “We take roll and keep minutes of the meetings. The state of Pennsylvania offers a 5 percent discount on your premium if you establish a safety committee for the purpose of hazard detection and accident prevention,” Kadelski said.
US Restaurants also utilizes safety audits conducted quarterly by a member of the corporate office or the insurance company loss control specialist. The broad-based audits cover more than 150 items, everything from the safety equipment on hand to the condition of the dumpster area. Some of the critical items include: all employees must be wearing slip-resistant shoes; all filtering equipment (gloves, mask, apron, leg protection) must be on hand and in good working condition; Whizard gloves must be visible and available for use; fryer filtering employees must be fryer filter certified, meaning that those individuals must have a formal certification in their personnel file, which they have signed along with the current management team; a proper box cutter must be on hand; etc.
When the audits began, the focus was on those locations that could not make it more than one year without an accident. “If you had an accident within the last year, you are guaranteed to be audited at least three times a year, and once you crossed over the one-year point, you wouldn’t be audited,” Kadelski said. “These detailed audits come up in the monthly safety meetings, and they’re a part of the general manager and district manager quarterly bonus program.”
An example of US Restaurants’ program success is the North Wales, Pennsylvania, BURGER KING®, which has gone 12 years without a claim. Under the incentive program, bonuses are awarded commensurate with the amount of time the restaurant has been safe and the amount of time the particular employee has been safe. For instance, the general manager at the North Wales BK® would receive a $3,000 bonus. Overall, the incentive program, including cash bonuses and awards, costs US Restaurants $60,000-$70,000 per year.
“This program creates a high awareness in the restaurants. They understand that, just like any other part of operations, safety is a huge part,” Kadelski said. “There may be a couple 12-years’ safe employees and others who are four, five or six years, but if they have an accident, the whole restaurant goes back to zero. That has financial impact to them. If someone isn’t wearing their shoes, another coworker is going to say, ‘You don’t have your shoes on.’ You don’t have to worry about the manager enforcing it. The other crew members are going to enforce it because they have something to lose if there’s an accident.”
When it comes to implementing your own loss control program, Kadelski encourages fellow franchisees to begin with data – determine what, where and why injuries are occurring and how frequently. “Gather your data. Assemble your safety team. Begin doing some safety audits, and piece together the program that way,” he said. “Your workers’ compensation broker and carrier are the best resource for your program.”
A successful program, regardless of the size of the franchise group, helps raise awareness inside the restaurant, keeping employees safe and costs in check.
Jessica Loeding
Jessica Loeding is the NFA Associate Vice President of Communications. You may reach Loeding at 678-797-5169 or jessical@nfabk.org.
The US Restaurants Inc. Safety Program consists of a various elements, all of which are reinforced through recognition and incentive programs. A few of the key features include: All restaurants have televisions within plain view of the kitchen that touch on operational issues as well as safety issues like proper equipment, security, proper lifting or the safety focus for the month.
- An annual safety awareness meeting is held for all managers where the loss control specialist from the workers’ compensation and general liability carriers are in attendance to make presentations. There is a review of all aspects of safety in the restaurant, along with what to do when an incident occurs. It is mandatory for all managers to attend.
- All safety paperwork is easily found on the company website. These incident forms are also emailed to specific email addresses. These are routed to the correct personnel for quick and proper handling.
- Safety is continually reinforced through the following incentive programs.
- Formal celebrations are held quarterly at each particular restaurant that has remained safe for at least one year. The celebrations consist of cake, certificates, bonuses, pictures and on-the-spot rewards such as $50 in cash or gift cards to a movie and/or restaurant. The bonuses awarded are commensurate with the amount of time the restaurant has been safe and the amount of time the particular employee has been safe.
- District managers have their own safety incentive program that runs in six-month increments. It’s based on the number of days safe or if they have failed a safety audit. The award is $2,500 for the winner.
- Maintenance personnel also have their own safety incentive program, which is an all-or-nothing deal. If all are safe for a year, they each get $250, and it builds each year. If one has a claim, they all receive nothing.
- For the past five winters, an extra incentive program has been held for a chance to win an iPad or Apple Watch. Four awards are given to all eligible managers, and one award is given to the DM. To qualify, the restaurant must be claim-free (workers’ comp and general liability) for the period from Dec. 1-March 31.