Business Ethics, Laws, and Regulations Paper

Introduction

The restaurant industry has experienced intense competition in the recent times. Fortunately, changes in the lifestyles of people have always created business avenues for restaurants. Many people today have less time to prepare meals at home. Reduced resource availability and inability to cook at home have also played a role in promoting restaurant business. The food industry is currently the third larges in the U.S. and accounts for $240 billions annually.

The extermination industry, which involves elimination of pests of all kind, is however very saturated. It thus requires extensive marketing and strategic planning of both financial and human resources to be successful (Toth, 1999). This paper discusses restaurant and extermination business with regard to their proper management, taxation, liabilities, laws and regulations, and labor issues.

Restaurant Business

There are certain qualities and skills that one must possess to take control of a restaurant business. First, the owner must have proper communication skills. Communication is vital between the managers and workers as well as with the customers. Good communication skills must be instilled in the workers so that customers are treated with care and respect. Proactive managers and workers is a trait that will increase customer base for a restaurant (Brown, 2007). This implies, all employees must plan their jobs to avoid any delays that may inconvenience customers.

The managers/owners must lead by example and show the employees the right way of doing things in the restaurant. Lack of focus on the goals of the restaurant may affect the performance of the business. Apart from the personal qualities and skills, an entrepreneur has to keep in mind the legal issues related with starting a restaurant business. There are licenses, permits, taxations and other regulations to consider before venturing into any business. Non-compliance to government regulation could be costly to the business. It is thus imperative upon the entrepreneur to heed to these laws.

There are numerous taxes that one is required to pay to operate a restaurant in the U.S. Among them are; excise tax, environmental fees, State income tax, employer taxes, and workers compensation insurance. Among other requirements are licenses are business license, building permit, business name registration, special permits from the health department, and permit for alcohol and beverage sales. There is also need for the employer to obtain detailed information on employment terms.

This information should be on minimum wages, working hours, recommended working conditions, and liquor license in case the restaurant will sell liquor. Discrimination of disabled employees by restaurants is a federal offense and should never be practiced. Besides, child labor regulations must be adhered to by any restaurant business. Finally, the minimum wage level must be observed and any overtime work compensated for appropriately (Hartman, 2004).

A restaurant, like any other business, faces risks in its daily operations. Most restaurant risks are associated with health issues. Any incidences of customers complaining of unclean food should be avoided. The legal and financial implications of such errors are enormous for the business (Brown, 2007). Liabilities that arise from customer complaints might be costly for the business since compensations will have to be made.

In addition to health-related liabilities, other risks include fire, intoxication of customers in case of overconsumption of liquor. The restaurant may be entangled in a lawsuit with such a customer. Accidents such as scalding of customers by waiters are also a cause for worry by restaurant owners, as the customer will automatically sue the restaurant. Utmost care is thus mandatory for restaurant owners and employees.

Extermination Business

The extermination industry consists of establishment whose goal is exterminating and controlling birds, insects, rodents and other types of pests. To start a successful pest control business requires proper management, planning, market analysis, advertising, employee training and management, proper record and bookkeeping (Toth, 1999). The extermination market in the U.S. is currently very saturated. It is therefore imperative upon an investor to aggressively market the business to make it profitable. Large amount of capital should be availed, for both starting the business and marketing purposes.

Capital and legal issues to be fulfilled are numerous and since Frank has the money to invest, he may as well franchise the business so that it is a different entity from him. The franchisee will run the business and Frank will get a portion of the profits accrued. Taxation and legal matters relating to the business will not directly involve Frank. There are many laws and regulations that seek to control the extermination business.

In addition to being legally registered, with business name/address indicated, the business must have a certificate of insurance for any injuries to the staff and third parties. One of the major risks of extermination business is the numerous laws and regulations that govern the use of chemicals used to eliminate pests. There is also low season during winters. However, stable market can be found in restaurants, office, and business buildings.

Some of the major risks in the business are stiff competition that may derail the growth of business. One also has to catch up with the technological advances in order to compete favorably. Numerous licenses required due to the toxic substances used in pest termination act as barriers to entry into the business. Other conditions in the industry that should be considered by an entrepreneur are the volatility of the industry, effects of globalization, capital and labor intensity, and other regulations and deregulations by the authorities. Read about business ethics reflection paper

Conclusion

Before one starts a business, it is important that the viability of the business be studied. The capital/cost of starting the business, legal requirements, taxations, and the market trend are some of the factors to consider. Moreover, labor issues must be considered to ensure the business is compliant. The risks and liabilities associate with running of the business have to be weighed. The liabilities must not exceed the growth rate of the business, as this will lead to its collapse.

References

Brown, R. D. (2007). The restaurant manager’s handbook: How to set up, operate, and manage a financially successful food service operation. Atlantic Publishing Company (FL).

Hartman, L. (2004). Perspectives in business ethics. McGraw-Hill/Irwin.

Toth, S. (1999). Public interest groups attack pest control ads. (Several San Diego, CA, pest extermination firms accused of false/misleading advertising): San Diego Business Journal.