Philo
Problem & Solution
Hospitality businesses have a lot of licenses they need to acquire and maintain when starting a business, and need to adhere to strict compliance requirements. Very often - these businesses find themselves getting warnings or fined because of violations and the process of getting the initial licenses often means filling up a lot of paperwork leading to frustration for business owners
- Cost of Non-Compliance: According to a study by the National Federation of Independent Business (NFIB), regulatory costs are a significant burden. Fines for health code violations can range from $50 to over $10,000, and repeated violations can lead to forced closure. A single OSHA violation can carry a penalty of up to $15,625.
- Time & Administrative Overhead: A report by the National Restaurant Association notes that restaurant operators spend an average of 15-25 hours per month on administrative tasks, with compliance being a major component. This represents significant lost productivity for owners and managers.
- Complexity: The average restaurant must comply with regulations from multiple agencies, including local health departments, state liquor authorities, the FDA, OSHA, and the Department of Labor. This can amount to dozens of unique permits and compliance checks.
