For all the talk of digitizing the restaurant industry and helpful technological tools that will advance your restaurant business, it is important to note a challenge in this developing area: data breaches. This Nation’s Restaurant News (NRN) article reports on several data breaches to quick-serve restaurants that have implemented consumer-facing apps, including Chick-fil-A®, Five Guys®, and McDonald’s®.
Chick-fil-A’s data breach was most recent, confirmed just a few weeks ago, which came back to their popular mobile app. The data breach impacted less than 2% of its users. Individuals opt into loyalty programs via the apps, which allows restaurant businesses to collect data that is a important process in retaining customers. Though 2% nominal, this data breach is part of a pattern across restaurants and restaurant-adjacent businesses that are turning to digital applications to interact with and reward their loyal customers.
In fact, “in Q3 2022, for instance, data breaches globally were up by 70% year-over-year, according to cybersecurity company Surfshark,” the article states, citing Info Security Magazine. This is compared to only a 14% rise in the United States in the first quarter, according to Identity Theft Magazine.
Chick-fil-A’s recent breech affected a small percentage of the restaurant’s customers before the issue was caught and resolved. But data breaches can cause costly damage quickly, and on a much larger scale. Door Dash’s most recent data breach affected more than five million users.
With the development of new technologies and tools, it is easy to seize the opportunities for growth. However, it is equally important to remember that opportunities—and especially digital ones—can also come with risky challenges. Restaurant owners should absolutely participate in technological growth, but they should be prepared to protect their customers, as well as for how to compensate in the event of a breach issue.
“At National Restaurant Consultants we recommend two processes to help protect restaurant operators,” explains Richard Weil, owner and principal of National Restaurant Consultants (NRC). “NRC recommends contacting your business insurance agent about obtaining two important business insurance policies, ‘Cyber Insurance’ and ‘Errors and Omissions’ insurance. Both of these types of policies are generally inexpensive compared to the process of having to defend your business from a cyber type of attack.”
Our restaurant consultants monitor the news in this quickly changing industry so that we can aid our clients in navigating exciting new opportunities that may come with new challenges. By working with one of our restaurant consultants, we can help your restaurant identify digital opportunities for growth and customer connection while also advising your customers’ continued happiness and safety.