Why Your Business Needs Ironclad Terms and Conditions

A Cautionary Tale from the Catering Industry

Running a business, especially one that serves food, comes with many responsibilities. From food safety to customer satisfaction, catering companies are constantly juggling a range of tasks to ensure events run smoothly. However, as one unfortunate event demonstrates, even the most careful businesses can be caught off guard by unforeseen
circumstances.

At McKenzie Consultancy & Legal, we recently handled a case that highlights the importance of well-drafted and thorough terms and conditions. This case involves a client who operates a successful catering business, but despite believing they had taken every precaution, they faced a situation that could have severely impacted their
reputation and finances.

The Incident: An Unexpected Allergy Test

The catering company was booked for an event, and as per usual practice, they worked closely with the client to draft and finalise the menu. During the planning process, no guests with known allergies were reported by the event organiser. The menu was agreed upon, and the event proceeded as planned. However, during the event, one guest experienced an allergic reaction to the food. It was later revealed that this guest was undergoing allergy testing, a detail that had not been disclosed to the caterers. While the company’s terms and conditions covered them for undisclosed allergy reactions, they did not specifically account for scenarios where a guest might be “testing” for allergies – a subtle but significant gap in their coverage.

The Outcome: Legal and Reputational Fallout

While the catering business was ultimately only responsible for a minor compensation payment to the affected family, the ripple effects were larger. The event attendees left a series of negative reviews on Google, resulting in damage to the company’s reputation, which directly impacted their future bookings. The client believed they had done everything within their power to protect themselves, but their terms and conditions left them exposed to this very specific but critical situation.

The Lesson: The Importance of Detailed Terms and Conditions

This case serves as a stark reminder of the importance of meticulously drafted terms and conditions. For businesses in the catering industry, it’s not just about protecting yourself from known issues like allergy reactions; it’s also about accounting for unusual circumstances – like guests undergoing allergy testing. Having clearly worded and comprehensive terms and conditions puts the onus on the event organiser to notify you of any special circumstances, including guests who may be involved in testing or any other unique scenarios.
In this instance, we amended the client’s terms and conditions to ensure that they are better protected. They have also implemented additional measures, such as differentiating between allergy-intolerant foods and ensuring proper risk assessments are conducted before events. By taking these steps, they are now better equipped to
handle unforeseen situations and safeguard their business from legal and reputational damage.

Protect Your Business: Free Terms and Conditions Review

Don’t wait until it’s too late to review your business’s terms and conditions. Whether you run a catering company, event planning business, or any service-based operation, ensuring that your legal documentation covers all potential risks is crucial.

At McKenzie Consultancy & Legal, we are running an offer for a free terms and conditions review to help identify any gaps that could leave your business vulnerable. Simply use the code MCLOCT24 to book your complimentary consultation today.

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