Risk Anaylsis

Operations/Products

JJ’s Pizza is a new restaurant located in Broussard, LA. JJ’s serves their locally famous homestyle pizza in a new, but quaint atmosphere. This joint venture started with Jeff Penn and Judd Judeice in 2007 and the business opened to the public on October 1, 2007. JJ’s is a Limited Liability Corporation with two owner members, 5 managers, and over 60 part time employees. They are in the food service industry.

Building

JJ’s operation is housed in one building. It is a new structure located off of Albertson’s Parkway. The land and the building are leased by JJ’s from Acadiana Construction Company. The lot size is 120 x 130 ft (approximately 15,600 sq/ft) with the building itself being 5,000 sq. ft (see Appendix A). The building currently is set up to hold 200+ people inside, with the fire code limit set at a 220 person occupancy level. The inside of the premises is divided into 7 main areas. The bar area is 1000 sq/ft and is the first area you seen upon entering JJ’s. There are four tall bar stools along the bar to the right and 2 large benches on the left which serve as a waiting area for customers. All liquor, bar glasses, and daiquiri machines are located behind the bar itself. The men’s and women’s bathrooms are a total of 280 sq/ft. They each have four regular stalls and one handicapped stall with three separate sinks and two trash cans. The dining room is 1545 sq/ft. This area is where the customers are served their food. There are 11 large booths and 37 tables with a divider wall in the middle of the dining area. The kitchen is 1600 sq/ft. There are 2 doorways that lead into the kitchen from the dining room. The kitchen area houses all of the pizza ovens, mixing tools, cutting tables, drink machines, cooking supplies etc… The storage rooms total 500 sq/ft. There is a walk-in cooler/ freezer which stores their food supplies, and a dry storage area which holds all dry food supplies, canned goods, take out boxes, etc… The drive through area is small and only totals 25 sq/ft. There is a drive through window and a counter with shelving that stores various take out supplies such as to go boxes, cups, silverware, and bags. The office is also relatively small and is only 50 sq/ft. This room contains a desk, computer, filing cabinet, and safe. All of JJ’s paperwork including, licenses, employee records, and financial data are kept in here. There are three entry/exit doors to the building and four 4 windows along the front of the building. They are also compliant with all handicap accessibility laws.

Employees and benefits

Excluding the two owners, JJ’s currently has about 55 employees who include five managers and about 55 part-time employees. There are approximately 17 employees per shift, including at least two managers. There is one host/hostess who is responsible for greeting and seating all customers upon entering. Six to seven servers are normally assigned to the dining area to serve the customers seated at the tables. They are responsible for taking and serving all food and drink orders and assisting the customers with anything else they may need. One server is assigned to attend the bar area and serve all alcohol to customers sitting at the bar and to other servers for the customers at their tables. One server handles all take out orders and mans the drive-thru station. They are responsible for taking any call in orders, bagging the orders, and taking the money and handing out the food at the drive-thru window. There are normally six employees working in the kitchen preparing the food. Two employees are responsible for the preparation area. Their main jobs are making sure that they are equipped with enough food ingredients for each shift to put the pizzas together, including sauce, cheese, and toppings. They are also responsible for making all appetizers, salads, and sandwiches. Three employees are responsible for actually baking the pizzas and getting them to the correct server. There is also one employee in the kitchen who handles all of the dishwashing. The two managers on duty are responsible for overseeing all restaurant operations during their shifts. They must oversee all employees to make sure that everyone is doing their job. Some of their other duties also include doing any paper work that is needed per shift such as server checkouts at the end of the night, going to the tables and talking to the customers to see how they are enjoying their meals, handling any disgruntled customers, making sure that the servers have enough change to give to customers who are paying in cash, and helping out wherever is needed.

All newly hired employees go through a four day training period. For each shift they are assigned to another employee and shadow them, following them around and learning what they do. Because JJ’s Pizza is not a large franchise, there is no corporate training policy that they must follow. If a manager feels that an employee is taking longer to catch on to their job than someone else, then they can extend the training period as they see fit. Along with shadowing another employee, trainees are responsible for learning the layout of the restaurant, such as table numbers and where things are stored, and restaurant procedures and policies, such as cell phone and break time rules.

Financing

There are two owners of JJ’s, Jeff Penn and Judd Judeice. They started JJ’s with their own money and personal loans for undisclosed amounts. The company currently has no outstanding loans. They lease the property and the building from Acadiana Construction Company and pay a monthly note to them. All of the restaurant equipment and supplies were bought by Jeff and Judd. Because they are a small business and have only been open a little over six months, they currently have no investments on behalf of the company. The main financial exposures to JJ’s Pizza, besides any claims made against them for liability issues, are really only the risk of rising food and supply costs and the cost of losing business and business income.

Loss exposure

Although JJ’s has not experienced any losses yet, we have identified some areas of concern. As you know we did a walk through of your building and property and we found several issues that we think should be addressed in order to minimize your exposure to various risks. Luckily it is a new building so we did not find too many major loss exposures, but we will now discuss the loss exposures that