Could Your Staff Steal Your Customers?

Posted by barblog on May 3, 2010 in Bar Management | 1 comment

If you’ve been following all the tips on this website with regards to staffing and training then you may have trained your staff so well that they end up leaving the business and setting up a competing business in the area. I’ve seen it happen before and it can have a big effect on your business, so there are a few things you should think about today to prevent too much disruption.

How much confidential information is available to your staff?

The higher level the staff member, the more information they will likely have access to including supplier pricing, phone numbers, entertainment contact details, staff phone numbers, recipes etc. While it is difficult to create a working environment that prevents access to ALL confidential information, the fewer staff members that have access the better. If employees use your confidential information for their own benefit, then you may have legal recourse.

Are your contracts iron-clad?

Do you have contracts in place that prevent senior staff from contacting staff members and suppliers for a certain period of time after they leave? Depending on your area, this may be illegal, so check the law before implementing this. You may also be able to prevent staff members from working their notice period so they can’t spend a week or two after they have handed in their notice in your place of work when you know they are planning another business to compete.

All said and done, it will be near-impossible to prevent a former employee from setting up and competing with you. Competition can be good for business sometimes and cause you to up your game while more customers might be attracted to your area with increased food/beverage offerings. As long as parting is amicable and the law has been observed, game on!