Restaurants and food service businesses face risks that are common to other industries, such as expiration or change of lease terms, interest hikes on financed equipment, minimum wage increases, worker’s compensation, etc. In addition to these potential issues are variables unique to food service companies. Restaurants are subject to strict regulation for maintaining sanitation, health, and safety standards. It is important for a restaurant owner to be mindful of local alcohol restrictions and license requirements, as well as zoning restrictions. Revoking of permits can hinder operations, and result in sizeable penalties for owners. For several reasons, the emergence of new competition can be particularly devastating. As consumer tastes change and franchise restaurants are rapidly absorbed into the industry, business owners may have difficulty keeping up with evolving markets. Aside from the risks of external competition and regulation, business owners face fluctuations of input prices. Increases for fresh ingredients (dairy, produce, etc.) pose a greater threat to companies engaged in price competition, where profit margins are more likely to be thin. Employee management is a key issue for many operators. High turnover rates can mean costly training, so potential buyers should consider worker retention before finalizing an acquisition. Skilled employees, namely managers and food handlers, are often the most difficult to replace in a timely manner. Trustworthy employees are often critical to the success of these businesses, which are susceptible to cash theft or inventory abuse by workers.