Cluck ’n Go — Risk Analysis & Mitigation Strategies
A comprehensive risk assessment has been conducted to identify, evaluate, and develop mitigation strategies for the principal risks facing the business. The following risk register addresses both internal operational risks and external market risks.
Section 11 · Business Plan
Risk Analysis & Mitigation Strategies
A comprehensive risk assessment has been conducted to identify, evaluate, and develop mitigation strategies for the principal risks facing the business. The following risk register addresses both internal operational risks and external market risks.
A comprehensive risk assessment has been conducted to identify, evaluate, and develop mitigation strategies for the principal risks facing the business. The following risk register addresses both internal operational risks and external market risks.
| Risk Category | Description | Likelihood | Impact | Mitigation Strategy |
|---|---|---|---|---|
| Supply Chain Disruption | Poultry supply shortage due to avian flu, drought, or supplier failure | Medium | High | Multiple suppliers, 7-day safety stock, contingency sourcing agreements |
| Competitive Response | Established chains lower prices or increase marketing in Nelspruit | High | Medium | Differentiation through quality, local brand loyalty, loyalty programme |
| Economic Downturn | Reduced consumer spending due to recession or rising inflation | Medium | High | Value meal positioning, flexible cost structure, delivery focus |
| Operational Risk | Kitchen equipment failure, staff turnover, food safety incidents | Medium | High | Maintenance contracts, staff retention programmes, HACCP compliance |
| Regulatory Risk | Changes in food safety regulations, labour law amendments, VAT changes | Low | Medium | Legal compliance monitoring, industry association membership |
| Load Shedding | Power outages affecting kitchen operations and customer experience | High | High | Inverter/generator backup, gas-hybrid cooking equipment, UPS for POS |
| Reputational Risk | Negative social media reviews, food quality complaints | Medium | High | Quality control, rapid response protocols, customer feedback systems |
| Technology Risk | POS system failure, cyber security breach, delivery platform issues | Low | Medium | Cloud backup, cyber insurance, multiple delivery platform integration |
11.1 Load Shedding Contingency
Given the persistent risk of load shedding in South Africa, Cluck ‘n Go will invest in a comprehensive power backup solution comprising a 20kVA diesel generator with automatic transfer switch (ATS) for seamless switchover, lithium-ion battery inverter system for POS, lighting, and communication systems, gas-hybrid cooking equipment to reduce reliance on electrical power for core food preparation, and an uninterruptible power supply (UPS) for the POS and CCTV systems. The total cost of this backup infrastructure is included in the capital expenditure budget under kitchen equipment and technology.
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