Penn Station East Coast Subs President Explains What to Do When a Supplier Invokes an Act of God Clause

Act of God clauses, while rare, have the potential to impact how well a business performs. They relate to events outside of human control, including earthquakes and other natural disasters. So, in the event that a supplier triggers an Act of God clause in a contract, how should brands react? That’s the question that Penn Station East Coast Subs President Craig Dunaway answers in an article written for Kivo Daily.

Dunaway explains that brands should be prepared and always have a crisis management plan. They also need to be able to do research and verify the Act of God claim. However, the most important thing for brands to keep in mind as that the customer comes first.

In his article, Dunaway said, “For example, Penn Station’s lemon supplier faced high winds that damaged crops, so we’re facing a huge lemon shortage. Instead of removing fresh-squeezed lemonade, one of our signature products, from the menu or raising the price, we made the conscious decision to operate business as usual. We are encouraging franchisees to find lemons from alternative sources if they must to keep lemonade on the menu. Are lemons harder to find and more expensive? Yes, but our customers trust us, and we want to maintain that trust with them.”