What Restaurants Need To Know About The California Consumer Privacy Act

Restaurants know the importance of securing the privacy of their customers, because they have a history of safeguarding personal information. Now, a new law aims to protect consumers even further by protecting the personal information that companies, including restaurants, collect and disseminate. Although the California Consumer Privacy Act doesn’t take effect until January 1, 2020, now is the perfect time for restaurants to reevaluate their data protection policies to ready themselves and customers for these important changes. 

What is the New Law? – The CCPA was adopted into law last year and applies to any company doing business in California. This law was created to give customers greater visibility and control over their personal data. If asked, restaurants would have to let customers know what kind of personal information they are collecting and who they share it with. However, restaurants are not required to have customers’ permission to collect it. If this sounds like customers don’t have control of their data, that’s hardly the case. A customer can ask that a company delete the information being sold to third parties and that company would have to comply. 

Who is Affected? –This law has widespread impact as the nearly 40 million residents in California who will be affected as owners of personal data. As for the businesses at stake, the CCPA targets companies with a revenue of more than $25 million that gather information from at least 50,000 customers. In addition, a company must derive at least 50% of its revenue from selling personal information. This law also affects restaurants with franchised units located in California but that operate outside the state.

CCPA Violators Can Face Hefty Fines

This law is created to give visibility and control to consumers with hefty fines for violators.  If a consumer asks for their personal information from a company, the business will have 45 days (unless granted an extension) to comply with the request. Restaurants who do not follow the law could face a costly penalty of up to $7,500 per violation.

What Steps Can Restaurants Take to Prepare For the CCPA?

  • Update Data Disclosures and Data Use Agreements— These disclosures and agreements communicate the intention of the business regarding data collection. They may already be in effect in most establishments, but restaurant owners shouldn’t hesitate to add more particulars to these documents. The CCPA requires that companies include details about how they collect and use personal information. Restaurants should update these disclosures at least once a year.

  • Examine Security Protocols— It’s critical to review the security of online systems. Data breaches open restaurants up to legal action by customers, especially if the restaurant lacks effective security protocols. California says businesses should maintain “reasonable” security, although that is not clearly defined by the state. Either way, restaurants can protect their operations by having cyber security insurance that covers the nitty-gritty of the CCPA.

  • Allow Consumers to Opt Out—Update websites and other online properties with disclosures that allow customers to opt out of the data collection. Accomplish this by creating a pop-up button on any online device that customers can click on stating “Do Not Sell My Personal Information.”  Also, the consumer has the right to have their personal information deleted.

It’s no surprise that restaurants have gathered personal information to improve their products and services and more accurately target consumers. This information represents a growing trend in business and technology toward big data collection and analytics. Fortunately for consumers, legislation is catching up. The CCPA represents an opportunity to improve the customer experience by providing more insight and control regarding their personal data. Customers are more likely to feel comfortable sharing their data if they know how it will be handled. Complying with the CCPA isn’t just about the law. Ultimately, it’s about thoughtful customer service.

About Restaurant Magic:
Restaurant Magic Software has been providing advanced software solutions to the restaurant and hospitality industry for over 20 years. The robust Data Central Management Suite, the flagship product, is a powerful and flexible application that takes advantage of the latest technology trends to offer premier processing and analytics. With advanced forecasting, predictive scheduling and mobile technologies, Data Central has something for every problem. To learn more about Restaurant Magic Software and its products, call us at 1(800) 933-4711.

Tips for Managing A Franchised Organization

Opening any business has some level of risk, and franchises are no exception. Restaurant franchises have strong brand recognition among their customer base which may insulate them against the ups and downs of the industry. That doesn’t mean there is room for complacency. Better management of franchise operations can increase profit margins and provide the right support system for success.

5 Ways to Minimize Restaurant Labor Costs

As restaurant operators navigate the challenges in the market, rising labor costs continue eating away at the industry’s already low profit margins. Learning how to manage these costs more effectively is now more imperative than ever. Restaurant owners and managers must be creative and innovative if they want to maximize their labor potential and minimize this this expense. To stay ahead of the curve they will need to embrace organizational change, new technology, and other opportunities that are brought by the changing workforce.  Here are 5 creative ways to minimize labor costs in the food industry:

Common Inventory Mistakes Most Restaurant Managers Make

Inventory is one of the greatest assets in a restaurant and must be managed effectively for managers to maximize profit margins. When you’re busy handling the day to day operations of the business, like staff management, customer service management, and cost controls, it’s not easy finding the time to reevaluate processes that have been in place for a while. Nonetheless, it’s vital that you prioritize some time to evaluate areas that are more vulnerable to errors. Here are 4 common inventory mistakes many restaurant managers make:

Tips for a Successful Technology Implementation

Deciding to implement new technology in your restaurant is exciting. It can lead to higher profit margins, happier customers, and more productive employees. The key to helping your company adopt it successfully lies in how you implement. It’s just as, if not more, important than your decision to upgrade.  Consider using some of our top tips below to help your next technology implementation project go smoother.

Five Ways to Improve Labor Retention in Restaurants

Labor retention continues to be a significant challenge in the food service industry. Restaurants experience annual turnover rates that are greater than any other sector, sometimes exceeding 70%!  When the employee turnover rate is high, the costs of hiring and training new employees can really cut into potential profits. With increases in costs, labor competition, and minimum wage rates, it’s becoming even more important to focus on retaining the right employees.

New Software Tools Improve Restaurant Labor Management Practices

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2019’s New Minimum Wages: What You Need to Know and Do

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Lessons Learned – Customer Experience in the Software Industry

After 20 years in business, Restaurant Magic Software has learned some valuable lessons about customer service. Through many evolutions they have established a central mission that encapsulates the core of their success in the industry: it’s a human centric philosophy that caters to clients on a personal level, tending to their emotional responses as much as their technical needs.

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Building a restaurant is all about making a name for yourself among consumers. But it’s just as important to build your brand among the industry as well. With labor costs rising and turnover eating into the profits, it’s more important than ever to attract the right people to your store. So how do you make sure to attract the best talent? Here are 5 easy ways to position your restaurant as the one to work for.

What You Really Need to Know About Your Restaurant P&L

Most restaurant owners go into business because they love restaurants. This means food prep, menu creation, and good service. Math and accounting skills never seem to be a factor, but they are important when understanding the health of the business.  The most basic document that provides a picture of the restaurants health is the P&L Statement.   So - let’s break it down and find out what’s really in a P&L.

Cyber Security - How I Saved my Company Hundreds of Thousands in Costs

The notion of the restaurant as the refuge from the day-to-day connectivity of life has changed. A restaurant that does not offer WiFi so patrons can upload photos of the chef’s Spéciale du jour may earn the ire of Yelpers, once connection to the digital world is restored.  This means that nearly all restaurants are facing several of the same cyber security challenges typical tech-based businesses face every day. In this article, I’ll present five practices that any one store café or large chain restaurant group can adopt around cyber security which could prevent data breaches and keep both company and patron information safe from the rising threat of cyber criminals. Preventing a single breach could save a business hundreds of thousands of dollars.