Why direct costs are just the tip of the iceberg
—and how indirect costs can quietly drain your profits.

What One Accident Can Really Cost You

You probably already know that an employee injury will cost you something.
But most restaurant owners only think about the obvious stuff—like a trip to the ER or a workers’ comp claim.

What they don’t see (until it’s too late) is the snowball effect that follows.
And that’s where the real damage happens.

In this post, we’re breaking down the difference between direct costs and indirect costs—and why the second category can quietly hurt your bottom line for months (or years).

Direct Costs: The Expenses You Can See

These are the costs directly tied to the injury itself—usually medical or insurance related. That includes:

• Emergency medical care or first aid

• Hospital visits and prescription medications

• Workers’ compensation payouts

• Physical therapy or rehabilitation

• OSHA fines (if you’re cited for unsafe conditions)

Workers’ comp is often the biggest chunk—especially in high-risk states. And OSHA penalties? Those have gone way up in recent years.

But direct costs are only part of the picture.

Indirect Costs: The Ones That Really Hurt

This is the part most people don’t plan for.
These are the ripple effects—the stuff that doesn’t show up on your balance sheet right away, but still stings.

• Lost productivity during and after the incident

• Overtime to cover shifts

• Hiring and training a replacement

• Broken dishes, damaged gear, wasted product

• Internal paperwork and compliance delays

• Lower morale, slower service, higher turnover

• Legal disputes or attorney fees

• Admin hours chasing insurance companies

Economists estimate that indirect costs are 4–5x higher than direct ones.

So if a single burn or laceration costs you $5,000 in medical bills…
The hidden loss in productivity, team disruption, and missed sales might be $20,000 or more.

And that money? You don’t get it back.

This Is Why Prevention Pays

Most restaurant owners don’t budget for indirect costs—because they don’t expect anything to happen.

But here’s the truth: hope is not a strategy.

One injury—one careless mistake—can spiral into tens of thousands in loss.
It can damage your brand. It can wreck team morale. And it can leave you wondering how things got so out of control.

That’s why the Restaurant Employee Safety Training REST program exists.
And that’s why this blog series is here to help you prevent the preventable.

Want a Simple, Proven Way to Train Your Team?

Our OSHA-compliant REST training gives your employees exactly what they need—without the boring lectures.

• 13 safety topics (like cuts, burns, slips, fire safety, etc.)
• Online. On-demand. Lifetime access.
• 13 videos, 13 quizzes, 13 printable certificates
• Only $25 per employee

Get the Complete Training Kit

You’ll also get access to customizable safety posters, pre-shift reminders, and free recertification tools!

P.S. What’s REST, Really?

Each REST module includes eight mini sections that build understanding and memory—like our micro-training videos, music videos, and this blog.

The intro of every module is designed to answer a simple but powerful question:

“Why does this topic matter in a restaurant?”

Whether it’s the ABCs of Fire Extinguishers or the right way to store sharp knives, we always start by explaining why it matters—because that’s the first step to making it stick.

Thanks for being here. You’re doing more than checking a box—you’re protecting your people.