Tag Archives: fraud

Prank Calls Wreck Restaurants – Criminal Liability and Fire Code Requirements

By Constantine Mittendorf

Attention Prank Calls

Last week, a number of restaurants in California’s Central Valley received a phone call from someone claiming to be from either a local fire department or a fire alarm company.  The caller asked the restaurant to test the emergency fire suppression system, claiming that the system was in “test mode.”  The problem was, it was a prank call, and the fire suppression system was not in “test mode.”

Continue reading Prank Calls Wreck Restaurants – Criminal Liability and Fire Code Requirements

Gift Cards – A Gift to Restaurants?

By Constantine Mittendorf

Gift Card

If you have an unused gift card from your birthday last year, then you’re not alone. Consumer Reports surveys have found a quarter of people who receive gift cards don’t use them within a ten month period.

This can be very profitable for a restaurant that sells gift cards. The restaurant gets the money up front and a large percentage recipients never use the balance on the card. Lots of people either lose the gift card, forget about it, or just never redeem it. In fact, it’s so common that the industry has a term for it – breakage.  Gift cards can be a great deal for a restaurant, but there are some pitfalls. Continue reading Gift Cards – A Gift to Restaurants?