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CASE 2 - IMPACT ON BUSINESS


  •       Before the restaurant do a closing, the workers should check properly all of their equipment's and electrical appliances. They have to make sure if the equipment's and appliances are turned off completely especially in the kitchen area. This is because the kitchen area has a high tendency for fire to happen.The restaurant should consider on installing fire extinguisher appliances especially fire sprinkler. 


  •      Fire sprinkler should be installed in the kitchen area to slower down the spreading of fire. By having fire sprinkler, the fire may not be spread to the other area of the restaurant.




CASE 2 - LESSON LEARNED

LESSONS LEARNED


  • Before the restaurant do a closing, the workers should check properly all of their equipment's and electrical appliances. They have to make sure if the equipment's and appliances are turned off completely especially in the kitchen area. This is because the kitchen area has a high tendency for fire to happen.

  • The restaurant should consider on installing fire extinguisher appliances especially fire sprinkler. Fire sprinkler should be installed in the kitchen area to slower down the spreading of fire. By having fire sprinkler, the fire may not be spread to the other area of the restaurant.

fire extinguisher

water sprinkler

CASE 2 - FIRE DAMAGED SUSHI RESTAURANT FACES LONG RECOVERY

The general manager of a popular sushi restaurant that was gutted by fire Wednesday said the extensive damage means it could be at least six months before the restaurant reopens.

“I still can’t believe it’s disappeared,” said Naoko Kokubun, general manager for Sen Zushi Japanese restaurant and sushi bar. “They said anything in the kitchen cannot be used. And all the walls, ceilings and floors have to be removed.”





Fire caused at least $300,000 damage to the Sen Zushi Japanese restaurant. The kitchen is unusable but the building is structurally sound, says the restaurant's general manager.   Photograph By ADRIAN LAM, Times Colonist.

The building is still structurally sound, she said.


Fire broke out in the kitchen of the restaurant, located at 940 Fort St., about 5 a.m. Wednesday. Firefighters had trouble reaching the kitchen and had to smash through another door.


The fire appears to have been sparked by a rice cooker left on overnight. The blaze caused at least $300,000 in damage but the building was covered by insurance.
As to how long it will take to repair the damages, “some people say six months at least, some people say a year,” Kokubun said.
“We’re just doing our best to reopen it as soon possible.”
The restaurant was decorated with expensive Japanese art, but Kokubun said much of it may be salvageable.
Kokubun said the approximately 20 staff will meet today to talk about the next steps. She said the business will understand if employees look for other jobs but that they would be welcomed back when the restaurant reopens.
The restaurant has been open since 1971. Current owner Tsutomu Kondo bought the restaurant in 2004. Sen Zushi is under the direction of chef Kozo Kawada, who in 2009 prepared an eight-course dinner for the entourage of Japanese Emperor Akihito during his visit to Victoria.
Kokubun said she’s overwhelmed by the messages of support from loyal customers and other Fort Street businesses.
“So many of them [are] saying they’re glad that no one is hurt and they are wishing that we can reopen soon,” she said. “And some business owners on Fort Street, they are willing to help us in any way.”

CASE 1 - LESSONS LEARNED

LESSONS LEARNED

a)      The flower shop should consider opening another outlets in order to recover loss. If there is loss happens at the main shop, there is still another outlets that can gain profits and cover the loss that occurs at the main shop. So by this way, loss can be reduced. In this case, Kamelia only opened one outlet of her flower shop, so it is a total loss.


b)      The business owner should consider the geographic factor of their shop. They should choose a strategic and appropriate location to open their business. In this case, Kamelia should avoid location that have a high possibility for storm to happen.


strategic location

open another outlets

CASE 1 - IMPACT ON BUSINESS

  1. Kamelia’s Flower Shop has to close their shop for about a month for the recovery of their shop. For a month they will not get any profit income and experience some losses because they could not serve their customers’ needs. Also they have to wait for a new cooler to store the flowers.



CASE 1 - Chronology

CHRONOLOGY CASE 1

Period of cover : 1st January 2013 until 31st December 2013
Duration of cover : 1 year
Interruption : 10th August 2013
Interruption period : 1 month

INTERRUPTION RISK

Based on the situation of Kamelia’s Flower Shop, the interruption risk is the storm. Storm is one of the natural disaster which is covered under Consequential Loss Insurance policy.

INTERRUPTION LOSS

a)      Loss of future profit
b)      Additional expenses such as : utilities, rent, wholesale product, supplies
c)       Cost of replacement


additional expenses

loss of profit


CASE 2 - Chronology

CHRONOLOGY CASE 2

Period of cover : -
Duration of cover : -
Interruption : 16th April 2014
Interruption period : 6 months

INTERRUPTION RISK

Based on the situation of Sen Zushi Japanese restaurant and sushi bar, the interruption risk is the fire.  The fire caused by sparks from a rice cooker left on for overnight.

INTERRUPTION LOSS

a)      Loss of future profit
b)      Additional expenses such as : utilities, rent, supplies
c)       Cost of replacement for floor, walls, ceilings, interior design such as their expensive Japanese art.


loss profit


 
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