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The importance of food distributors is never more evident than when supplies are unavailable, and that was the case for many restaurants last week after signs of what could have been a cyber attack on one of the country's largest food distributors caused widespread disruptions in delivery service, according to Restaurant Business Online.
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March 2023  /  View this email in your browser.

HospitalityLawyer.com® Newsletter Insurance & Loss Prevention
Via Tasting Table image: Sorry we are closed sign board hanging on door of cafe How Dubious Cyber Activity Hindered Restaurant Operations Across the US

The importance of food distributors is never more evident than when supplies are unavailable, and that was the case for many restaurants last week after signs of what could have been a cyber attack on one of the country's largest food distributors caused widespread disruptions in delivery service, according to Restaurant Business Online.

The target of the possible cyber attack was Fort Worth, Texas-based distributor Ben E. Keith, which employs 6,000 people and accounted recorded over $5 billion in revenue in 2022. On Monday, March 20, the company posted the following message to its website: "Ben E. Keith recently detected unusual activity in our network. In response, we proactively disabled business systems to minimize risk for our business and our customers."

A number of food supply issues were reported in the wake of the alleged "unusual activity."

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How Insurance Companies Defraud Their Policyholders: What Courts And Legislators Should Do About It

March 15, 2023 via Anderson Kill

Insurance companies have legitimate reasons for denying claims, but sometimes denials or significant delays are the result of unfair practices or even fraud. Such actions may be systemic or undertaken by an individual. What rights do policyholders have? What can they do to combat illegitimate denials?

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Anderson Kill
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Inflation, Weather Events Conspire To Cause Sharp Increase in Hotel Insurance Costs

March 2, 2023 via CoStar

According to the Council of Insurance Agents and Brokers members, inflation and a corresponding increase in valuations and replacement costs drove part of the increase. The other main driver for premium increases was the impact of natural disasters. 

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man and woman business people holding a life net to catch falling arrows and bounce them updward

What is Crisis Management and Why Do We Need A Plan? — The Expert’s Guide

March 1, 2023 via 4Hoteliers

All good crisis management efforts go through three core stages — Pre-Crisis (preparedness and prevention), Crisis Response (actually managing the crisis), and Post-Crisis (recovery and analysis, integrating lessons learned).

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Via Mordern Restaurant Management image: gold coins, invoice, payyment request, cell phone with notifications, and credit cards in front of a laptop Protect Your Restaurants from Invoice Fraud Through Technology

In this time of economic insecurity, payments fraud has the potential to hit businesses harder than ever before. Currently, the average US business is losing $300,000 to payments fraud each year according to the latest Financial Census, a study which surveyed 2,750 senior finance executives across the globe – 15 percent of whom work in the retail, catering and leisure industry.

This staggering annual loss to fraud is important to note, as the report findings come at a time when US restaurants in particular are experiencing a surge in returning workers and restaurant revenue. This surge of revenue and demand for food related services – mostly paid for through digital, contactless transactions – could potentially attract cybercriminals to commit acts of fraud all the more. This is due to two reasons. 

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