The Essentials: Protect — Fast-Food / Limited-Service Restaurant

What Protection Means for QSR Risk

Protect phase covers liability insurance, workers' comp, product liability, and employment contracts. Primary risks: food poisoning ($10k–100k+ claim), slip-and-fall ($50k–500k+), wage claim, and food recall. GL: $1M = $1,500–2,500/year. Workers' Comp: 2–5% of payroll. Product liability: $500–1,000/year. Contracts define roles, confidentiality, non-compete.

The 3 Decisions That Determine Your Outcome

First: insurance stack—GL, workers comp, product liability, umbrella ($1M). Cost: $3,500–6,000/year but protects $5M+ assets. Second: employment model—W-2 employees (more control) vs. 1099 (flexible). Fast-food uses W-2. Third: contracts—employee handbook, NDA, non-compete, vendor agreements.

What to Analyze Before Committing

Get quotes from 3 food-service insurance brokers. Request GL, workers comp, product liability amounts and deductibles. Review employment agreement and handbook (SHRM template, $30–200). Identify vendor risks: supplier bankruptcy, food recall. Create emergency procedures.

Common Mistakes at This Stage

Underinsuring (GL $500k is risky; use $1M+). Miscategorizing workers (W-2 vs. 1099 creates liability). No written employment agreement (wage disputes are common). Ignoring food safety protocols.

Your Protection Checklist

1. Get insurance quotes (GL, workers comp, product liability, umbrella). 2. Review employment handbook and contracts. 3. Create employee onboarding: tax forms, handbook sign-off, role clarity. 4. Document food safety: receiving, storage, preparation, temperature logs. 5. Establish supplier agreements (food safety certifications, recall protocols). 6. Set up emergency procedures. 7. Create IP protection: NDA, trademark.

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