2014 RIMS
Restaurant Industry Loss Data
Survey
Recording of this session via any media type is strictly prohibited.
Page 1
2014 Restaurant Industry
Presented by:
Al Rhodes
President
SIGMA Actuarial Consulting Group, Inc.
Recording of this session via any media type is strictly prohibited.
Page 2
2014 Restaurant Industry
• Quick Service:
• Casual Dining:
-Raising Cane’s Chicken Fingers
-YUM (Taco Bell, Pizza
Hut & KFC)
-Cajun Operating Company (Church’s)
-McDonald’s Corporation
-McDonald’s Texas Owner Operators
-MRCO (Taco Bell)
-JEM Restaurant Group (Taco Bell &
Pizza Hut)
-Chipotle
-Whataburger
-White Castle
• Full Service:
-Denny’s
-Landry’s
-99 Restaurants
-Panera
-Dave and Buster’s
-Houlihan’s
-Cooper’s Hawk Winery & Restaurants
-Texas Roadhouse
-Noodles & Company
-California Pizza Kitchen
-The Rose Group (Applebee’s, Corner
Bakery)
-Red Robin
-O’Charleys
-American Blue Ribbon
• Cafeteria/Buffet:
-Golden Corral Corporation
-Luby’s Fuddruckers Restaurants
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Page 3
2014 Restaurant Industry
General Information
•Do you have 24-hour operations?
Yes
No
Quick Service
4
8
Full Service
1
3
Casual Dining
1
9
Cafeteria/Buffet
0
2
•Are you providing home delivery?
Yes
No
Quick Service
0
12
Full Service
2
2
Casual Dining
0
10
Cafeteria/Buffet
0
2
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Page 4
2014 Restaurant Industry
General Information
•Are you in a self-insured or large retention program ($250,000 or more per occurrence)?
Yes
No
WC
10
2
GL
8
4
WC
4
0
GL
4
0
WC
7
3
GL
3
7
WC
2
0
GL
2
0
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
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Page 5
Range of Average Restaurant
WC Severities - 2011-13
$12,000
$10,000
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
MEDIAN
$6,000
$4,000
$2,000
$0
1
2
3
4
5
6
7
8
9
10
11
12
13
M 1
ED 4
IA
N
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Severity
$8,000
Restaurant
Recording of this session via any media type is strictly prohibited.
Page 6
Quick Service
Range of Average Restaurant
WC Medical Only Severities - 2011-13
Full Service
Casual Dining
$3,000
Cafeteria/Buffet
MEDIAN
$2,500
Severity
$2,000
$1,500
$1,000
$500
28
26
27
24
25
22
23
20
21
18
19
16
17
ED 14
IA
N
15
M
12
13
9
10
11
8
7
6
5
4
3
2
1
$0
Restaurant
Recording of this session via any media type is strictly prohibited.
Page 7
Range of Average Restaurant
WC Indemnity Severities - 2011-13
$50,000
$45,000
$40,000
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
MEDIAN
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
28
26
27
24
25
22
23
20
21
18
19
16
17
ED 14
IA
N
15
M
12
13
9
10
11
8
7
6
5
4
3
2
$0
1
Severity
$35,000
Restaurant
Recording of this session via any media type is strictly prohibited.
Page 8
WC Pure Loss Rates for 2011-13
(Exposure: Number of Restaurants)
$18,000
$16,000
$14,000
$12,000
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
Total
$10,000
$8,000
$6,000
$4,000
$2,000
$0
2011
2012
2013
Recording of this session via any media type is strictly prohibited.
Page 9
WC Pure Loss Rates for 2011-13
(Exposure: Labor Hours)
$50,000
$45,000
$40,000
Per 200,000
$35,000
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
Total
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
2011
2012
2013
Recording of this session via any media type is strictly prohibited.
Page 10
WC Pure Loss Rates for 2011-13
(Exposure: Gross Revenue - Sales)
$1.00
$0.90
$0.80
Per $100
$0.70
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
Total
$0.60
$0.50
$0.40
$0.30
$0.20
$0.10
$0.00
2011
2012
2013
Recording of this session via any media type is strictly prohibited.
Page 11
WC Pure Loss Rates for 2011-13
(Exposure: Gross Payroll)
$2.00
$1.80
$1.60
Per $100
$1.40
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
Total
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
2011
2012
2013
Recording of this session via any media type is strictly prohibited.
Page 12
Indemnity Percentages of Total Claims
50.0%
45.0%
40.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
ta
l
To
t
af
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C
C
as
u
al
Di
n
te
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/B
uf
fe
in
g
ic
e
er
v
ll
S
Fu
ck
Se
rv
ic
e
0.0%
Q
ui
Percentage
35.0%
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Page 13
Number of WC Claims Per Restaurant
4.00
3.50
2.50
2.00
1.50
1.00
0.50
ta
l
To
t
af
e
C
C
as
u
al
Di
n
te
ria
/B
uf
fe
in
g
ic
e
er
v
ll
S
Fu
ck
Se
rv
ic
e
0.00
Q
ui
Frequency
3.00
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Page 14
Number of WC Claims Per Labor Hours
14.00
12.00
8.00
6.00
4.00
2.00
ta
l
To
t
af
e
C
C
as
u
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Di
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te
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/B
uf
fe
in
g
ic
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v
ll
S
Fu
ck
Se
rv
ic
e
0.00
Q
ui
Per 200,000
10.00
Recording of this session via any media type is strictly prohibited.
Page 15
Number of WC Claims Per Gross Revenue Sales
0.14
0.10
0.08
0.06
0.04
0.02
ta
l
To
t
af
e
C
C
as
u
al
Di
n
te
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/B
uf
fe
in
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ic
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v
ll
S
Fu
ck
Se
rv
ic
e
0.00
Q
ui
Per $100,000
0.12
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Page 16
Number of WC Claims Per Gross Payroll
0.50
0.45
0.40
0.30
0.25
0.20
0.15
0.10
0.05
ta
l
To
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af
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C
C
as
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Di
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/B
uf
fe
in
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Fu
ck
Se
rv
ic
e
0.00
Q
ui
Per $100,000
0.35
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Page 17
Workers Compensation Loss Development
2.50
2.00
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
Total
1.50
1.00
0.50
0.00
2011
2012
2013
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Page 18
Percentages of Types of Workers
Compensation Claims
15%
22%
0%
1%
16%
19%
14%
13%
Slips and Falls
Burns
Repetitive Motion
Struck By/Against
Lifting (incl. manual handling)
Cuts
Violent Crime
All Other
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Page 19
Incurred Cost Percentages of
Workers Compensation Claims
16%
15%
4% 0%
8%
5%
29%
23%
Slips and Falls
Lifting (incl. manual handling)
Burns
Cuts
Repetitive Motion
Violent Crime
Struck By/Against
All Other
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Page 20
Quick Service Percentages of Types
of Workers Compensation Claims
15%
1%
1%
26%
13%
15%
14%
15%
Slips and Falls
Lifting (incl. manual handling)
Burns
Cuts
Repetitive Motion
Violent Crime
Struck By/Against
All Other
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Page 21
Quick Service Cost Percentages of
Workers Compensation Claims
12%
0%
5%
18%
29%
26%
6%
4%
Slips and Falls
Lifting (incl. manual handling)
Burns
Cuts
Repetitive Motion
Violent Crime
Struck By/Against
All Other
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Page 22
Full Service Percentages of Types of
Workers Compensation Claims
15%
20%
12%
13%
0%
1%
11%
28%
Slips and Falls
Lifting (incl. manual handling)
Burns
Cuts
Repetitive Motion
Violent Crime
Struck By/Against
All Other
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Page 23
Full Service Incurred Cost Percentages
of Workers Compensation Claims
22%
14%
25%
18%
1%
5%
9% 6%
Slips and Falls
Lifting (incl. manual handling)
Burns
Cuts
Repetitive Motion
Violent Crime
Struck By/Against
All Other
Recording of this session via any media type is strictly prohibited.
Page 24
Casual Dining Percentages of Types
of Workers Compensation Claims
11%
0%
1%
17% 21%
7%
31%
12%
Slips and Falls
Lifting (incl. manual handling)
Burns
Cuts
Repetitive Motion
Violent Crime
Struck By/Against
All Other
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Page 25
Casual Dining Incurred Cost Percentages
of Workers Compensation Claims
30%
21%
0% 9%
2%
16%
14%
8%
Slips and Falls
Lifting (incl. manual handling)
Burns
Cuts
Repetitive Motion
Violent Crime
Struck By/Against
All Other
Recording of this session via any media type is strictly prohibited.
Page 26
Cafeteria/Buffet Percentages of Types
of Workers Compensation Claims
14%
0%
4%
21%
1%
31%
17%
12%
Slips and Falls
Lifting (incl. manual handling)
Burns
Cuts
Repetitive Motion
Violent Crime
Struck By/Against
All Other
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Page 27
Cafeteria/Buffet Incurred Cost Percentages
of Workers Compensation Claims
0% 11% 5%
0%
12%
4%
44%
24%
Slips and Falls
Lifting (incl. manual handling)
Burns
Cuts
Repetitive Motion
Violent Crime
Struck By/Against
All Other
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Page 28
Quick Service
Full Service
Casual Dining
Range of Average Restaurant
GL Severities - 2011-13
Cafeteria/Buffet
MEDIAN
$55,000
$50,000
$45,000
$40,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
28
27
26
25
24
23
22
21
20
19
18
17
16
ED 14
IA
N
15
M
13
12
11
10
9
8
7
6
5
4
3
2
$0
1
Severity
$35,000
Restaurant
Recording of this session via any media type is strictly prohibited.
Page 29
GL Pure Loss Rates for 2011-13
(Exposure: Number of Restaurants)
$7,000
$6,000
$5,000
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
Total
$4,000
$3,000
$2,000
$1,000
$0
2011
2012
2013
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Page 30
GL Pure Loss Rates for 2011-13
(Exposure: Labor Hours)
$35,000
$30,000
Per 200,000
$25,000
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
Total
$20,000
$15,000
$10,000
$5,000
$0
2011
2012
2013
Recording of this session via any media type is strictly prohibited.
Page 31
GL Pure Loss Rates for 2011-13
(Exposure: Gross Payroll)
$2.50
Per $100
$2.00
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
Total
$1.50
$1.00
$0.50
$0.00
2011
2012
2013
Recording of this session via any media type is strictly prohibited.
Page 32
GL Pure Loss Rates for 2011-13
(Exposure: Gross Revenue - Sales)
$0.50
$0.45
$0.40
Per $100
$0.35
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
Total
$0.30
$0.25
$0.20
$0.15
$0.10
$0.05
$0.00
2011
2012
2013
Recording of this session via any media type is strictly prohibited.
Page 33
Number of GL Claims Per Restaurant
2.00
1.75
1.25
1.00
0.75
0.50
0.25
ta
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uf
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in
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Fu
ck
Se
rv
ic
e
0.00
Q
ui
Frequency
1.50
Recording of this session via any media type is strictly prohibited.
Page 34
Number of GL Claims Per Labor Hours
6.00
4.00
3.00
2.00
1.00
ta
l
To
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af
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C
C
as
u
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Di
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te
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/B
uf
fe
in
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v
ll
S
Fu
ck
Se
rv
ic
e
0.00
Q
ui
Per 200,000
5.00
Recording of this session via any media type is strictly prohibited.
Page 35
Number of GL Claims Per Gross Payroll
0.20
0.18
0.16
0.12
0.10
0.08
0.06
0.04
0.02
ta
l
To
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af
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C
C
as
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Di
n
te
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/B
uf
fe
in
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ic
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v
ll
S
Fu
ck
Se
rv
ic
e
0.00
Q
ui
Per $100,000
0.14
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Page 36
Number of GL Claims Per Gross Revenue - Sales
0.10
0.09
0.08
0.06
0.05
0.04
0.03
0.02
0.01
ta
l
To
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af
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C
C
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Di
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/B
uf
fe
in
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S
Fu
ck
Se
rv
ic
e
0.00
Q
ui
Per $100,000
0.07
Recording of this session via any media type is strictly prohibited.
Page 37
General Liability Loss Development
6.00
5.00
4.00
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
Total
3.00
2.00
1.00
0.00
2011
2012
2013
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Page 38
Percentages of Types of General
Liability Claims
16%
33%
9%
7%
7%
21%
1%
2%
4%
Falls
Violent Crime
Burns
Laceration
Alleged Food Poisoning
Struck By/Against
Foreign Object in Food
Property Damage
All Other
Recording of this session via any media type is strictly prohibited.
Page 39
Incurred Cost Percentages of
General Liability Claims
3%
21%
7%
1%
1%
8%
57%
1%
1%
Falls
Laceration
Foreign Object in Food
Violent Crime
Alleged Food Poisoning
Property Damage
Burns
Struck By/Against
All Other
Recording of this session via any media type is strictly prohibited.
Page 40
Quick Service Percentages of Types
of General Liability Claims
7%
28%
3%
12%
43%
5%
1%
0%
Falls
Laceration
Foreign Object in Food
1%
Violent Crime
Alleged Food Poisoning
Property Damage
Burns
Struck By/Against
All Other
Recording of this session via any media type is strictly prohibited.
Page 41
Quick Service Incurred Cost
Percentages of General Liability Claims
0%
0%
0%
1%
10%
62%
6%
19% 2%
Falls
Violent Crime
Burns
Laceration
Alleged Food Poisoning
Struck By/Against
Foreign Object in Food
Property Damage
All Other
Recording of this session via any media type is strictly prohibited.
Page 42
Full Service Percentages of Types of
General Liability Claims
11%
3%
12%
5%
20%
39%
0%
7% 3%
Falls
Laceration
Foreign Object in Food
Violent Crime
Alleged Food Poisoning
Property Damage
Burns
Struck By/Against
All Other
Recording of this session via any media type is strictly prohibited.
Page 43
Full Service Incurred Cost Percentages
of General Liability Claims
0%
2%
0%
1% 1%
46%
8%
6%
36%
Falls
Violent Crime
Burns
Laceration
Alleged Food Poisoning
Struck By/Against
Foreign Object in Food
Property Damage
All Other
Recording of this session via any media type is strictly prohibited.
Page 44
Casual Dining Percentages of Types
of General Liability Claims
11%
2%
19%
8%
20%
32%
5%
1%
2%
Falls
Laceration
Foreign Object in Food
Violent Crime
Alleged Food Poisoning
Property Damage
Burns
Struck By/Against
All Other
Recording of this session via any media type is strictly prohibited.
Page 45
Casual Dining Incurred Cost
Percentages of General Liability Claims
1%
4%
5%
4% 8%
12%
1%
15%
50%
Falls
Laceration
Foreign Object in Food
Violent Crime
Alleged Food Poisoning
Property Damage
Burns
Struck By/Against
All Other
Recording of this session via any media type is strictly prohibited.
Page 46
Cafeteria/Buffet Percentages of
Types of General Liability Claims
9% 1%
6%
13%
2%
3%
11%
55%
0%
Falls
Violent Crime
Burns
Laceration
Alleged Food Poisoning
Struck By/Against
Foreign Object in Food
Property Damage
All Other
Recording of this session via any media type is strictly prohibited.
Page 47
Cafeteria/Buffet Incurred Cost
Percentages of General Liability Claims
8% 0%
13%
49%
18%
2%
8% 0%
2%
Falls
Violent Crime
Burns
Laceration
Alleged Food Poisoning
Struck By/Against
Foreign Object in Food
Property Damage
All Other
Recording of this session via any media type is strictly prohibited.
Page 48
Range of Average Restaurant
Property Severities - 2011-13
$650,000
$600,000
$550,000
$500,000
$450,000
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
MEDIAN
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
28
26
27
24
25
22
23
20
21
18
19
16
17
ED 14
IA
N
15
M
12
13
9
10
11
8
7
6
5
4
3
2
$0
1
Severity
$400,000
Restaurant
Recording of this session via any media type is strictly prohibited.
Page 49
Property Pure Loss Rates for 2011-13
(Exposure: Total Insured Value)
$0.050
$0.045
$0.040
Per $100
$0.035
Quick Service
Full Service
Casual Dining
Cafeteria/Buffet
Total
$0.030
$0.025
$0.020
$0.015
$0.010
$0.005
$0.000
2011
2012
2013
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Page 50
2014 RIMS
Restaurant Industry Loss Data
Survey (California Only)
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Page 51
2014 Restaurant Industry
Participants:
1. Denny’s
2. California Pizza Kitchen
3. YUM (Taco Bell)
4. Chipotle
5. Red Robin
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Page 52
Range of Average Restaurant
WC California Only Severities - 2011-13
$14,000
$12,000
Restaurant
MEDIAN
All States
$8,000
$6,000
$4,000
$2,000
5
4
ED
IA
N
M
3
2
$0
1
Severity
$10,000
Restaurant
Recording of this session via any media type is strictly prohibited.
Page 53
Range of Average Restaurant
WC CA Medical Only Severities - 2011-13
$1,500
Restaurant
$1,250
MEDIAN
All States
Severity
$1,000
$750
$500
$250
5
4
ED
IA
N
M
3
2
1
$0
Restaurant
Recording of this session via any media type is strictly prohibited.
Page 54
Range of Average Restaurant
WC CA Only Indemnity Severities - 2011-13
$40,000
$35,000
$30,000
Restaurant
MEDIAN
All States
$20,000
$15,000
$10,000
$5,000
5
4
ED
IA
N
M
3
2
$0
1
Severity
$25,000
Restaurant
Recording of this session via any media type is strictly prohibited.
Page 55
WC CA Only Pure Loss Rates for 2011-13
(Exposure: Number of Restaurants)
$30,000
$25,000
$20,000
CA Only
All States
$15,000
$10,000
$5,000
$0
2011
2012
2013
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Page 56
WC CA Only Pure Loss Rates for 2011-13
(Exposure: Gross Payroll)
$4.00
$3.50
$3.00
Per $100
$2.50
CA Only
All States
$2.00
$1.50
$1.00
$0.50
$0.00
2011
2012
2013
Recording of this session via any media type is strictly prohibited.
Page 57
Indemnity Percentages of Total Claims
50.0%
45.0%
40.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
ll
S
A
A
O
nl
y
ta
te
s
0.0%
C
Percentage
35.0%
Recording of this session via any media type is strictly prohibited.
Page 58
Number of WC CA Only Claims Per Exposure
3.00
2.00
1.50
1.00
0.50
Pe
r$
10
rR
0,
00
es
0
ta
u
Sa
le
s
ra
nt
0.00
Pe
Frequency
2.50
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California Only Workers Compensation Loss
Development
2.50
2.00
1.50
CA Only
All States
1.00
0.50
0.00
2011
2012
2013
Recording of this session via any media type is strictly prohibited.
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Percentages of Types of California
Workers Compensation Claims
11%
0%
9%
22%
4%
22%
23%
9%
Slips and Falls
Lifting (incl. manual handling)
Burns
Cuts
Repetitive Motion
Violent Crime
Struck By/Against
All Other
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Incurred Cost Percentages of California
Workers Compensation Claims
17%
15%
0%
13%
4%
2%
17%
32%
Slips and Falls
Lifting (incl. manual handling)
Burns
Cuts
Repetitive Motion
Violent Crime
Struck By/Against
All Other
Recording of this session via any media type is strictly prohibited.
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