Managing Crises and Safeguarding Your Restaurant or Hotel
By: Michael Odom, Senior Vice President, Marx Layne & Co.
From quick bites and casual lunches to elegant dining for special occasions or staying at a hotel for a weekend getaway, the restaurant and lodging industry plays a vital role in our daily lives. Yet, these businesses often face challenges — from minor incidents that go viral on social media to major crises that make headlines. In today’s fast-paced communication environment, having a robust crisis communications plan is crucial for protecting your reputation, retaining loyalty, and ensuring your business’s survival.
Effective crisis management hinges on three key elements: understanding potential risks, responding promptly and effectively, and learning from the experience to recover stronger.
Understanding Potential Risks
When we think of crises in the hospitality industry, foodborne illnesses and on-premise incidents typically come to mind. However, potential risks are far more varied and can include discrimination claims, embezzlement, employment disputes, supply chain disruptions, safety protocol compliance, and data breaches.
Traditional media serves as a crucial channel through which crises in the hospitality industry are communicated to the public. News coverage on television, radio, and print can rapidly shape the narrative, often setting the tone for how a crisis is managed. In today’s digital age, social media can further intensify these challenges. A single negative incident can escalate quickly if it gains traction on platforms like X, Facebook, or Instagram. This makes it essential to monitor media channels continuously and respond swiftly to prevent the situation from spiraling out of control.
If your business doesn’t have a crisis communications plan, creating one should be a top priority. Without a plan, your team may struggle to respond effectively, increasing the risk of reputational damage, loss of trust, and business disruption.
Your crisis communication plan should:
When we think of crises in the hospitality industry, foodborne illnesses and on-premise incidents typically come to mind. However, potential risks are far more varied and can include discrimination claims, embezzlement, employment disputes, supply chain disruptions, safety protocol compliance, and data breaches.
Traditional media serves as a crucial channel through which crises in the hospitality industry are communicated to the public. News coverage on television, radio, and print can rapidly shape the narrative, often setting the tone for how a crisis is managed. In today’s digital age, social media can further intensify these challenges. A single negative incident can escalate quickly if it gains traction on platforms like X, Facebook, or Instagram. This makes it essential to monitor media channels continuously and respond swiftly to prevent the situation from spiraling out of control.
If your business doesn’t have a crisis communications plan, creating one should be a top priority. Without a plan, your team may struggle to respond effectively, increasing the risk of reputational damage, loss of trust, and business disruption.
Your crisis communication plan should:
- Identify potential vulnerabilities and outline specific responses
- Establish a crisis response team and designate a spokesperson
- Determine key media platforms and identify your supporters
- Develop adaptable key messages and ensure your staff is well-trained
- Plan to regain customer trust and confidence after the crisis has passed
Responding to a Crisis
A timely, alert, and disciplined response is essential during a crisis. Companies must quickly assess the situation's urgency, monitor social and traditional media, listen to input from staff and supporters, and communicate accurate, consistent, and sincere messages to key audiences.
Many companies are slow to grasp the urgency of a crisis, underestimate potential damage, or fail to address the stress and uncertainty felt by staff, customers, and vendors. In situations with legal or criminal implications, it’s crucial to communicate clearly about what has happened, provide transparency about steps being taken to investigate or resolve the issue, and demonstrate empathy and commitment to finding an effective solution.
Crises often extend over time, so maintaining vigilance and ensuring your messaging remains consistent is vital. Continual monitoring, adapting to new developments, and keeping all stakeholders informed are key to managing a crisis effectively.
A timely, alert, and disciplined response is essential during a crisis. Companies must quickly assess the situation's urgency, monitor social and traditional media, listen to input from staff and supporters, and communicate accurate, consistent, and sincere messages to key audiences.
Many companies are slow to grasp the urgency of a crisis, underestimate potential damage, or fail to address the stress and uncertainty felt by staff, customers, and vendors. In situations with legal or criminal implications, it’s crucial to communicate clearly about what has happened, provide transparency about steps being taken to investigate or resolve the issue, and demonstrate empathy and commitment to finding an effective solution.
Crises often extend over time, so maintaining vigilance and ensuring your messaging remains consistent is vital. Continual monitoring, adapting to new developments, and keeping all stakeholders informed are key to managing a crisis effectively.
Learning and Recovering
After a crisis, it’s important to reflect on what happened and what can be learned. Was your planning sufficient? Are there areas needing improvement? Do you need to rebuild confidence, or have you discovered new strengths? The goal is to achieve closure and move forward by re-engaging customers, the community, and stakeholders and by sharing positive updates that help restore your reputation.
Developing a crisis communication plan requires time and resources, but it’s a valuable investment. When done well, it not only prepares you for potential challenges but also helps you view your staff, guests, and the public through a more strategic and empathetic lens.
After a crisis, it’s important to reflect on what happened and what can be learned. Was your planning sufficient? Are there areas needing improvement? Do you need to rebuild confidence, or have you discovered new strengths? The goal is to achieve closure and move forward by re-engaging customers, the community, and stakeholders and by sharing positive updates that help restore your reputation.
Developing a crisis communication plan requires time and resources, but it’s a valuable investment. When done well, it not only prepares you for potential challenges but also helps you view your staff, guests, and the public through a more strategic and empathetic lens.
Enhance your crisis management strategy with Marx Layne's expert team. For more information, contact Michael Odom, Senior Vice President, at 248-855-6777 or [email protected].