Nine Ways to Maintain Business Operations following a Natural Disaster

Enduring a natural disaster is never easy, but through hard work and dedication, it’s possible to recover and even thrive afterward. You just have to be prepared.

By Tom O’Keefe

If we could predict the exact time and place a natural disaster is going to hit years in advance, most of us — if not all — would run far away from that location. We’d pack up shop, move to “greener pastures,” and avoid building our businesses and homes in that area. Perhaps that is what is so particularly devastating about natural disasters. We can never fully calculate in advance when a natural disaster is going to strike, how hard it will hit, and the full impact it will have on our lives — and our businesses.

In 2005, Hurricane Katrina struck the Gulf Coast and caused severe destruction, particularly to the historic city of New Orleans. The aftermath resulted in one of the five deadliest hurricanes, and one of the costliest natural disasters in the history of the U.S. Lives were lost, homes were obliterated, and businesses were left unrecognizable.

Smoothie King, founded and headquartered in New Orleans, was one business that felt the impact head on. Several Smoothie King stores in the Gulf area were absolutely destroyed by Katrina, leaving the franchisees and franchisor to pick up the pieces of what were once their careers, successes and passions. Many area businesses experienced devastating losses and surrendered completely. But not Smoothie King. It chose to thrive in the wake of Katrina, nearly tripling in size since then.

Whether hurricanes, wild fires, tornados or storms — all franchise establishments are susceptible to natural disasters of some kind. The question is: What can we learn from this particular case study? Below are nine ways to maintain franchise operations following a natural disaster, shared by Smoothie King as a result of enduring Hurricane Katrina in 2005.

1. Prepare for the worst; hope for the best. It is critically important your business has insurance in place that will cover the very worst scenario. Business interruption and flood insurance, in particular, are types of insurance many franchise owners go without, assuming they will never need them. However, the truth is a severe storm, tornado, hurricane or even a dam break, could cause huge and extremely costly damage, setting you back financially for years. When it comes to insurance, review all of your options and remember to prepare for the worst, even if it never happens.   
2. Develop an internal crisis communications plan. Any established franchise should have a good internal crisis communications plan in place. Not all of them, however, take into consideration natural disasters. When a natural disaster hits, oftentimes the phone lines are down, electricity is out and Internet connection is unavailable. Establishing a method for communicating and getting information quickly from franchisor to the franchisee and vice versa is key. Both parties should outline plans for temporary locations, supply chain management, employee communications and soliciting help from the corporate team. Document this process and present it to the entire organization.   
3. Establish an external communications plan. This plan should include everything from how to announce temporary store locations to the public to how to communicate recovery initiatives with the local and national media. Work closely with your public relations agency or internal communications team to outline external language that should be used in the event a natural disaster strikes. Remember that even though we live in a technological age, cell phones, computers and ATM machines can all be rendered inoperable. Make sure you have hard copies of your plans in an alternative place.
4. Take warnings seriously. Don’t make the mistake of having a “this would never happen to me” mindset. If warnings are in place for a natural disaster, the rule is simple. Take them seriously! Secure your store as much as possible, board up windows, get as much off the floor as possible (for a flood warning), and double-check your internal and external communications plans so you are prepared.  
5. Make sure generators are ample and available. Generators are key to re-opening after a natural disaster. Make sure you have generators in place in case of a long-term power outage. And don’t wait until the disaster strikes. This might be too late.
6. Open temporary locations as early as possible. When a natural disaster strikes, it’s important to open shop — even just a temporary location — as soon as possible. People will still need food, shelter and your services and the sooner you get up and running, the faster you’ll see a spike in sales. In fact, if you are in the food business and can be the first to re-open, you will be providing an essential service to the community. Everyone still needs to eat, right?
7. Let leaders be leaders. It’s pretty incredible to see the way different people respond to a natural disaster. After a devastating event, some people shy away from their responsibilities, while other people soar to the front line. When leaders naturally emerge during a time of crisis, let them help. These will be the most dedicated and long-lasting franchisees and employees you will ever see.
8. Band together. When a natural disaster strikes, you will need as much assistance as possible. Both the corporate team and other franchisees in the area should band together to recover as soon as possible. This could mean placing orders for another or donating supplies or picking up a broom, vacuum or shovel and helping with the cleanup.
9. Stay true to your roots. In the wake of Hurricane Katrina, Smoothie King’s original owner, Steve Kuhnau, was quoted saying “when you rebuild, they will come.” Truer words have never been spoken. When a natural disaster strikes, it’s devastating, but it’s also a time to rebuild, start fresh, and spark new momentum. Don’t give up — stay true to why you started in the first place and maintain positivity.

Enduring a natural disaster is never easy. It’s hard work, it takes dedication, and it involves blood, sweat and tears. However, as Smoothie King has demonstrated, it is possible to recover and then thrive after a natural disaster. You just have to be prepared.

Tom O’Keefe is president and COO of Smoothie King. Find him at fransocial.franchise.org.