Causes and Consequences of Restaurant Closures for Food Safety Violations

Introduction: With half of the food dollar being spent on food at retail foodservice establishments, it is critical that these establishments provide safe food. The health inspection process is one way that public health authorities can ensure this outcome. Health inspectors use objective metrics to judge whether safety and sanitation standards have been met. Ultimately, if an establishment has violations that seriously compromise the safety of the food offered for sale, that establishment may be closed. The economic consequences of restaurant closures are varied and can affect the viability of the business.

Purpose: The objective of this pilot study was to determine what factors led to the closure of restaurants by the health department and what the economic impacts to the establishments are.

Methods: Inspection records from counties representing different geographic regions of the country as well as rural and urban areas were examined to determine the reasons for restaurant closures. A sampling of media reports regarding these closures were also examined as a means of discerning potential economic impacts from these closures.

Results: The most prevalent reasons for restaurant closures were: operating without a valid health permit, no hot or potable water in the facility, vermin infestation and unsanitary equipment/utensils/food contact surfaces. Economics consequences associated with these closures include lost revenues during the period of closure, compliance costs and lost revenues due to reputation losses.

Significance: Determining the reasons for restaurant closures can provide health departments and food safety trainers needed information so they can concentrate on more specific factors and help to decrease the number of closures each year. Furthermore, the potential imposition of large costs on violators of food safety standards can create a powerful incentive for businesses to follow best practices, thereby leading to safer foods.