Every now and then we hear about restaurants that have been closed down due to vermin infestation. But there are many possible reasons why a restaurant has been closed down, aside from their infrequent use of extermination services. Here are some of the usual suspects:
In some cases, the restaurant may have been deemed a safety hazard. It can be that the staff hasn’t been diligent enough in their cleaning effort to prevent the buildup of grease, or perhaps it’s overcrowded or their aisle spacing wasn’t up to scratch. Likewise, they may not have the proper fire-suppression system. There may not be an adequate emergency exit plan in case of fire.
Other threats to people’s safety include structural damage, gas leaks, and failure to adhere to construction, plumbing, electrical, or ventilation codes.
Vermin and insect infestations are common health code violations in restaurants, but there are other possibilities. For example, the restaurant may have been using the wrong concentration of sanitation chemicals in their dishwasher. Food may not have been kept at the required temperature, or it could have come from unapproved sources. Some workers may not even be washing their hands properly.
Unless the situation is terribly serious, most of the time the restaurant is given the opportunity to correct any problems that’s been found by the health inspector. So it must be really terrible if a restaurant is closed down due to health hazards.
Most of the time, an illegal act that closed down a restaurant would have to do with serving alcohol to minors. A restaurant can be closed down if this sort of thing happens repeatedly.
Alternatively, in some cases, the restaurant may even be held liable if they sell too much alcohol to a particular customer. If that customer drives away and gets into an accident, the restaurant and the bartender may shoulder part of the blame.
Other potential illegal acts include gambling in the commercial premises, or if the servers or the entertainment are not dressed according to local rules.
There may not be anything wrong in the restaurant at all, and instead the owner is to blame because they didn’t pay taxes properly. The IRS is implacable with this sort of problem, so the books should be in order.
The accounts receivable should be organized so that there’s no suspicion of money laundering. The accounts payable should be monitored as well, and that includes the payroll, rent (or mortgage), vendor fees, utility bills, and other related loans.
Restaurants need a competent accountant to handle and record the finances. Without one, the IRS can close down a restaurant without hesitation.
Sometimes, the restaurant is closed down for entirely innocent reasons. Perhaps they’re hosting a private party for a special customer for the night, or maybe the staff is holding a party for themselves. It may even be closed for the holidays to give the employees a break.
When you find that your favorite restaurant is closed, you may want to dig a little deeper to find out what’s going on. It may not remain your favorite restaurant for long if you discover that they haven’t been using extermination services for their premises!