Preparing Hospitality-Related Entities and Retailers for Hurricane Season

stegmaier-christianMany South Carolinians will never forget 25 years ago when Hurricane Hugo wreaked havoc, leaving a path of destruction to the Palmetto State that cost billions of dollars to rebuild and many years to recover.

With that vivid memory and hurricane season in full swing, it’s imperative that businesses such as hotels, food service establishments, and retailers evaluate and discuss disaster planning preparedness, proper emergency response, and matters relating to business interruption/continuation. Here are some suggestions to those industries that can help protect not only your property, but also the comfort and safety of your guests/customers:

• Take steps before the storm to secure your physical property to minimize the effects of wind and rain. Additionally, make a conclusive determination regarding whether your establishment can continue operations in the event of storm. If there is any question that you can’t, this decision needs to be immediately communicated to all personnel and guests (and prospective guests who have made reservations). Your guests and prospective guests need as much lead time as possible to make alternative arrangements in the event you determine you will not be able to operate during the storm.

• Take steps before the storm to secure your physical property and minimize the effects of wind and rain.

• Make a conclusive determination regarding whether your establishment can continue operations in the event of storm. If there is any question that you can’t, this decision needs to be immediately communicated to all personnel and guests (and prospective guests who have made reservations). Your guests and prospective guests need as much lead time as possible to make alternative arrangements in the event you determine you will not be able to operate during the storm.

• Stay in contact with corporate risk managers and safety directors and heed their directions concerning emergency response.

• Review your establishment’s emergency response plan with all of your personnel. This plan should spell out what is to be done in response to a natural disaster, when it is to be done and who is to do it. Management needs to take responsibility for ensuring all employees know the plan and execute upon it.

• As a part of your emergency response plan, have a clear protocol in place concerning communication. Employees need to know what is expected of them during emergency situations. Make sure there is a way they can get the information they need (e.g., whether they need to come into work) in a reliable manner such as email, text, phone tree or recorded telephone message.

• In the event medical treatment is needed for either guests or employees, arrange for it. Do not hesitate to provide this kind of assistance if needed.

• Communicate with your guests. Tell them exactly what is being done to respond to the crisis. Let them know what they need to do in the event the storm requires they take shelter. Make sure your employees know to the importance of remaining calm when communicating information or directions to guests.

• Observe all published prices and rates for your hotel or food-service establishment. Do not attempt to capitalize on a crisis by raising prices or rates on your guests. Most states have strict anti-gouging statutes that prohibit such activity. Violation of these statutes can be met with severe civil and criminal sanctions. The potentially strongly negative hit to your business’ public image is another reason to avoid the temptation to unfairly capitalize on the disaster by raising prices.

Natural disasters such as hurricanes can be stressful and potentially hazardous for everyone in their wake, including retailers and hospitality providers. By having an emergency response plan in place, executing upon it, staying in active communication with stakeholders and being ever mindful of safety, your establishment can make the best of a difficult circumstance.

About Christian Stegmaier
Senior Shareholder

Christian Stegmaier is a shareholder and chair of the Retail & Hospitality Practice Group at Collins & Lacy in Columbia. He is also active in the firm’s professional liability and appellate practices. Stegmaier welcomes your questions at (803) 255-0454 or cstegmaier@collinsandlacy.com.