DISASTER RECOVERY 
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Richard L. Arnold, CBCP
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Robert Arnold
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Mike Croy, Forsythe
Jeff Dato, MBCP, KPMG
John Jackson
Edward S. Devlin, E.S. Devlin & Associates
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Pat McAnally, SunGard Availability Services
Brian Turley, Strohl Systems
Belinda Wilson, Hewlett-Packard


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Business Continuity
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fax: 03-3519-6255
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Disaster Recovery Mercosul
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Managing a ‘Finger Found in Chili’ Crisis

By ED DEVLIN, CBCP

I’ve mentioned in prior articles that there are usually three stages of a crisis: the pre-crisis stage (there is an internal warning that something is developing that could hurt the organization); the acute-crisis stage (the situation is now being reported by the news media, and there are various negative impacts); and then the post-crisis stage (the organization has the crisis under control and is attempting to recoup losses and make necessary changes to assist in putting the stigma of the crisis behind it.)

Then, on rare occasions, organizations do not get a pre-crisis warning. The crisis strikes from out of nowhere and the organization needs to respond. This was the case at Wendy’s International Inc. in April.

A woman said she was filing a lawsuit against the Wendy’s restaurant, because she found a piece of a human finger in the chili. The woman, Anna Ayala, from Las Vegas, claimed she bit into the finger while eating chili at a Wendy’s restaurant in San Jose, Calif. on March 22, 2005.

In cases like these, where there is no pre-crisis warning, the crisis management team must be activated and ready to go. Apparently, Wendy’s crisis management team was activated quickly and was ready to go.

The company investigated the claim. At the conclusion of the investigation, Wendy’s explained that the finger did not enter the food chain in Wendy’s ingredients. The employees at the San Jose store were found to have all their fingers, and no suppliers of Wendy’s ingredients had reported any hand or finger injuries.
That lead to a conclusion that the only way a finger could have entered the ingredients was if it was placed in the chili intentionally.

Wendy’s offered a $50,000 reward to anyone providing verifiable information leading to the positive identification of the origin of the finger.
San Jose police collaborated with the Las Vegas police fraud unit to investigate how the fingertip ended up in Ayala’s bowl of chili.

A check of court records showed that Ayala had a history of filing lawsuits – including a claim against another fast-food restaurant. Ayala had been involved in at least half a dozen legal battles in the San Francisco Bay area.

  • She brought a suit against an ex-boss in 1998 for sexual harassment.
  • She also sued an auto dealership in 2000, alleging a wheel fell off her car. That suit was dismissed after Ayala fired her lawyer, who said she had threatened him.
  • Ayala acknowledged that her family received a settlement for their medical expenses about a year ago after her daughter, Genesis, allegedly got sick from food at an El Pollo Loco restaurant in Las Vegas.

After the investigation, Ayala changed her mind and decided she was not going to follow through on the lawsuit.

At that point, Las Vegas police executed a search warrant for Ayala’s home. Investigators would not say what they were looking for in the search of Ayala’s house. A family friend, who lives at the home, said officers searched freezers, a picnic cooler in the backyard, and the belongings of an aunt, who used to live at the house.

On April 25, the Philadelphia Daily News reported that the Las Vegas woman was arrested on an attempted-larceny charge. Ayala was charged with attempted grand theft related to millions of dollars of financial losses Wendy’s had suffered since news of her claim broke.

Kohl’s Frozen Custard
On May 3, 2005, I read that a man, who ordered a pint of frozen chocolate custard in a Kohl’s Frozen Custard shop in Wilmington, N.C., found a piece of a severed finger.
The first thought I had, when I read the Kohl’s report, was that it reminded me of the copy-cat lawsuits that followed Stella Liebeck’s lawsuit against McDonald’s for hot coffee spilling on her at a New Mexico McDonald’s. Ms. Liebeck suffered third-degree burns after spilling a cup of McDonald’s coffee. Shortly after Ms. Liebeck’s accident, we saw lawsuits being filed with the same story line in various areas of the country.
Unlike the Wendy’s incident, no questions of truth have been raised about the finger in the Kohl’s frozen custard. Officials from the NC departments of agriculture and labor went to the shop, whose owner confirmed that one of his employees had lost part of a finger in an accident with a food-processing machine. NC state officials closed the shop, while the food processing equipment involved in the accident was cleaned and sanitized.

Pre-Crisis Warning
The next time someone talks about pre-crisis warnings, think about Wendy’s International. Some crises strike organizations without any prior warning and threaten the organization financial stability as well as the good reputation.



Ed Devlin, CBCP, has provided business recovery planning consulting services since 1973 when he co-founded Devlin Associates. Since then, Devlin has assisted more than 300 companies in the writing of their business recovery plans and has made more than 800 seminars and presentations worldwide.

 

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