Monday, September 5, 2011

Waffle House Playbook

Waffle House restaurants have a unique approach to safety that turns a disaster into a sustainable strategy. It is their aim to be open as much as possible during power outages, storms or whatever. Waffle House spends very little on advertising but gains goodwill from their conscious efforts to stay open no matter what. When they lose gas or electricity or ice they have a shortened menu and a procedure for what to do. They also plan for how to get back fully on line.

With 1,600 restaurants over much of the mid-Atlantic, Florida and the Gulf coast Waffle house is susceptible to hurricanes and other weather problems.

The Wall Street Journal has put together a great video summary:



Other businesses with disaster plans are Lowe's, Home Depot and Wal-Mart.

Every business should have a plan in place for how to work during hurricanes and other disasters.

David Sneed

Startups

It has been said that an entrepreneur is a risk taker. It has also been often noted that those who are known as entrepreneurs are in fact not risk takers. They know what they are doing.

Marc Ringel of Floor Works in New York was an unhappy math teacher.

He had learned something about the flooring business by working in the industry for a brief period of time. Then with $145 he started his own business by partnering with existing contractors. That money went for the basic technology that he needed.

By working with his network of contractors he had no need to make initial investments in fixed costs and he had no need to fund variable costs.

Then with net revenue gained from leveraging his low-cost technology he was able to do the basics of incorporation, licensing and insuring. He added more contractors to his network. He then got his first big job on his own.

During the slow season he leveraged more low-cost technology and added painting as a product.

Ringel has been in business for a little over four years. If he continues with his start-up approach his business will continue to grow while continuing to almost eliminate risk.

David Sneed


Sunday, September 4, 2011

OSHA penalties of $76,005


OSHA has cited Burris Logistics for 13 alleged serious safety and health violations at its Harrington, Del., warehouse following an investigation initiated under the agency's Site-Specific Targeting Program for industries with high injury and illness rates. Proposed penalties total $76,005.
Some of the serious violations involve exposing employees to electrical hazards due to the company's failure to properly mark voltage panel boxes, properly guard voltage junction boxes, and cover live electrical parts. Additionally, Burris Logistics failed to consult employees, including contractors, on the process hazard analysis and other elements of process safety management. The company also failed to provide appropriate process safety information; provide appropriate operating procedures regarding safe shift changes, shutting down and starting up; document that the oil drain valve for one of the process pressure vessels complied with recognized and generally accepted good engineering practices; address considerations related to fluctuations in ammonia levels; conduct inspections to maintain system mechanical integrity; implement a plan for emergencies involving a potential ammonia release; provide written procedures for employees engaged in maintenance activities; place electrical equipment in an approved location; and ensure that the ammonia machine room complied with ventilation and other safety requirements.
An other-than-serious violation, with no monetary penalty, was cited for not conducting annual hearing tests.
Safety is all too often viewed as an unnecessary expense. On the Burris website there is an obituary for their CEO who had been in the family business since age 12. There is a great deal of material about his Christianity and his faith in the Lord Jesus. The Bible tells us that "Safety is of the Lord." One cannot help but wonder why if they are Christians they are not dealing with safety. 
Overall what could motivate companies to deal with employee safety? In the long run there may be greater motivation for the employees to leave and start their own business. Though not guaranteed, smaller firms often seem to have better safety records than the larger ones where responsibility is dispersed. 
David Sneed