Friday, October 7, 2011

Does ServSafe care about your restaurant?

Make no mistake about it, ServSafe is a business and a profitable one.  They pull in an estimated $50 million per year according to industry insiders.  But how, exactly, does ServSafe make money?

Some background
ServSafe is part of the National Restaurant Association (NRA).  The NRA is in a conflicted position: while it is chartered to represent restaurants and their interests, its major source of income - ServSafe - is constantly searching for more ways to make money from the very restaurants it is called to represent and protect.

How ServSafe makes money

  1. Book publisher - just type in 'ServSafe' to an Amazon.com search and you will see close to 300 books available.  They sell these books directly to the consumer and also through their proctor network, which brings us to point 2
  2. Course material developer - ServSafe provides course materials - DVDs, pamphlets, etc - to independent instructors.  The average cost to get started as a ServSafe instructor can range in the thousands of dollars, all proceeds going to the NRA
  3. ServSafe is a testing agency - When instructors give a ServSafe Manager's Food Safety exam, they typically pay ServSafe around $30 for each participant taking the exam 
Does ServSafe have the best interest of restaurants at heart?
Despite being an arm of the NRA, ServSafe clearly benefits through increased regulation and restrictions on the restaurant industry.  As more states require restaurants to have employees with more and more certifications (e.g., Manager's Food Safety Certification, Food Handlers Certification), ServSafe reaps the benefits.  In a later post we'll examine how ServSafe manipulated legislation in California to create a windfall for themselves at the cost of the restaurant operator. 

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