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Six Essential Steps for Brand Crisis! How to Quickly Establish Boundaries to Protect Your Brand?

New Open | 顧問專欄                                                              撰文/魏 韶嫈     Photo | New Open

 

Legal Expert's Step-by-Step Guide: Learning from the Red Bean Restaurant Bento Cockroach Incident to Resolve Brand Crises


Recently, a consumer dispute erupted at the Red Bean Restaurant's branch in the Taipei Veterans General Hospital mall: a consumer found a giant cockroach in their bento box! The consumer felt nauseous and even sought emergency medical treatment for gastroenteritis. Following this incident, the Taipei City Health Department conducted an inspection and identified three hygiene deficiencies, giving the restaurant a 14-day period to make corrections.


So, how should the food and beverage industry handle such crises to protect their brand image? Let's learn a few key steps from this incident:


1. Immediate Response and Apology:

   When a crisis occurs, the company should immediately issue a statement acknowledging the problem and apologizing to the affected consumers. This demonstrates the company's sense of responsibility and sincerity. For example, in the case of the Red Bean Restaurant bento incident, when the consumer reported the issue, the staff should have immediately apologized and refunded the money, and assured the consumer that they would promptly check the operational processes. This not only shows the consumer that the restaurant takes the incident seriously but also allows the restaurant to retrieve the bento with the cockroach for further investigation, reducing the risk of malicious claims.


2. Conduct an Investigation and Ensure Transparency:

   After apologizing to the consumer, a thorough internal investigation must be conducted to identify the root cause of the problem and promptly communicate the findings to the consumer. If the media is already reporting on the incident, the company should also provide the public with transparent updates on the investigation, demonstrating that the company is actively addressing the issue rather than concealing facts. In this case, Red Bean Restaurant should immediately conduct a comprehensive inspection of the branch's hygiene conditions and make the results public. Even if deficiencies are found, proactively proposing an improvement plan can earn consumer trust and maintain the brand image.


3. Implement Corrective Measures:

   Based on the investigation results, promptly take necessary corrective actions and inform the public about the actions taken and planned. This may include improving cleanliness standards in the environment and food preparation processes, providing additional employee training, and enhancing food safety inspections.


4. Compensate the Consumer:

   Besides offering an immediate apology and refund, continue to show care and provide compensation to the affected consumer, expressing the company's sincerity and responsible attitude. If the consumer experiences health issues, accompany them to medical treatment and cover medical expenses. Additionally, offering free meal vouchers or other compensation can demonstrate the company’s concern and respect for the consumer.


5. Media Relations Strategy:

   Maintain good communication with the media, respond to inquiries promptly, and provide accurate information to prevent the spread of rumors and misunderstandings. Holding a press conference or issuing an official statement can address public concerns effectively.


6. Ongoing Monitoring and Improvement:

   After the crisis, the company should continuously monitor related issues to ensure similar incidents do not recur. Regularly check and update food safety and hygiene standards to maintain high operational standards.


These measures not only help companies effectively manage current crises but also recommend establishing a crisis management mechanism early on and implementing it rigorously. This can enhance consumer trust in the company, protecting the company’s reputation and brand image.

魏韶嫈,法律顧問
開張國際顧問 | 魏 韶嫈

 
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