The question: "How to know someone is stealing from you" is actually quite easy. Either you’re missing inventory, money, or some other type of item.
So the question should be "how do I stop or deter theft"?
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Understand, if someone is stealing from the register, they also are likely stealing in other ways.
If employees are flat out stealing from restaurants or giving out free food/drinks, it can make running a successful restaurant and bar that much more difficult.
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“National Restaurant Association even reveals that on average, employee theft contributes to 4 % of restaurants’ total food costs. “ CITATION
There are a few ways that a restaurant or bar can know how someone is stealing.
First We Need To Address The Basic
When you hire the right people, you wont have to worry about this problem. But its hard to know if someone is going to steal from you based on a resume and interview. So you’ll need a few things in place that will help you discover if someone is stealing.
1. You’ll need rigorous inventory management like with a Point of Sale (POS) system. Restaurant owners who don't track their sales report are extremely susceptible to employee theft. A great point POS system can be extremely beneficial for your company. They can help you keep track of all of your sales, help manage your inventory, and even provide data that can be helpful for optimizing your business. This is important not only for theft but also for profitability.
Think Of It As An Investment
These systems can range anywhere from $3000-$6000. This can be a large investment for a small business. We recommend doing whatever you can to get one. Even a used one will pay for itself after a short period of time.
There are also a few other products that could help with a minimal investment. Here is a link to some of the top POS systems.
If you are talking about bar-specific theft, consider measured liquor pourers. They can be very helpful with keeping track of your liquor inventory, in addition to significantly increasing profits.
Other Ways To Mitigate Theft
1. GOOD ACCOUNTING - This also means inventory audits as well as financial. What a POS system doesn't pick up, good physical inventory will.
QUICK NOTE: When it comes to the bar, check the bottles for being watered down using an alcohol meter. Theft can come in many different forms. It can come from the time clock, breaks, and employee discounts as well. You should have policies and systems in place to monitor all of these things.
PRO TIP: Have a manager sign off on all employee discounts when they take place.
2. CAMERAS - Cameras will be able to provide physical proof that someone is stealing. Make sure your employees know you have them, but not where they are.
Here is a good place to find camera systems.
3. GOOD LEADERSHIP - This one is often left out. Being a good leader can significantly reduce theft. If people respect you, they tend not to steal. Theft can run rampant in establishments with bad leaders.
4. SECURITY - Lock up things that are not in use. Liquor and money are very easy to steal. This also means not having a register that opens when a cash sale was not made. I can't believe those still even exist. If you have one, get rid of it immediately!
When ISN'T It Theft?
Just because your inventory is off from sales doesn't necessarily mean that someone is stealing from you. It could also mean that you have a training problem. When your employees do not use proper portions for alcohol, they are literally pouring away your profits.
The Best Way To Fix Overpouring
Measured Liquor Pourers are the best fix for this. Overpouring is the #1 reason why bars lose money. If you have a bar, you should have measured pourers.
In Closing
Employee theft can be significantly lowered and even stopped. Start by implementing some of these tips in your establishment immediately. Will it take some time to figure out? Sure. But once you do, you can get back to enjoying what got you into this career in the first place. And that's when the real success starts!
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