Once you own or operate a business, namely a bar or restaurant, there are several common problems you have to be on alert for. The biggest and most common of them is theft. The temptations and opportunities to steal in these places has to be accounted for and guarded against. Luckily, if you know what you’re looking for, and are willing to do the work, you can eliminate most of the problem. Let’s take a look at the different types and methods that need to be on your radar and how to strategies to prevent theft:
1. One-Time/Big-Time –
Description: Individuals who attempt a major theft, taking a large sum of money at once.
Examples: Breaking into the safe, embezzling large sums, or just taking money in bulk from the register.
Likelihood: Rare but highly impactful.
Personal Story: I had to send Michelle home because the bar was slow. She was unhappy with my decision. So much so that she returned an hour later, walked behind the bar and removed $500 in fives from the register and walked back out. I never heard from her again.
Prevention: In a company that is operated with any thought to security, there isn’t much opportunity to steal enough at one time to make it worth it to this type of thief. The extremely basic practices of having most of the money in a safe with limited access, and structured procedures for cash during shifts will keep the most greedy and bold thieves from cleaning you out.
2. The Subtle Thief
Description: Employees who steal lesser amounts consistently over time.
Examples: Skimming cash from the register, pocketing tips that were meant to be split, or manipulating credit card tips.
Likelihood: Most common and often the hardest to detect due to the minimal daily discrepancy.
Personal Story: Ashley was a shift leader that worked primarily in one location and she was very good at her job. Her team enjoyed her shifts because she was clear about the day’s goals and was always there to help when it was needed. For a few months, her shift was consistently short between $25-$50. It was brushed off because the $50 looked so small compared to the sales, which were usually $10,000 or above on a given day, and because this location was used as a training ground for new hires, so the managers blamed the new guys. After some investigation, we found video evidence that she was taking the money each time. I don’t know how long she was able to pull it off, but even $25 per day for someone working five shifts a week, leads to $500 a month gone.
Prevention: Track any discrepancies you find in the cash and the people that worked those shifts. Many times these shortages will be to honest human error, but for the times that it isn’t, a pattern will emerge. Also check your POS for No Sale transactions; often that will be used to avoid the drawer being short. Don’t be fooled by having an “overage” at the end of a shift either. It is possible that someone is ‘padding the register’ with a plan to steal later, but they forgot to take the money.
3. Barters for Tips
Description: This group of thieves doesn’t take money directly from the register, but instead gives away products to guests, so they are encouraged to put more money in the tip jar. They prioritize personal gain over the establishment.
Examples: Free extra shots in a cocktail or daiquiri; dessert that doesn’t make its way to the final bill; service rendered ‘off the books’.
Likelihood: Common, especially in establishments where tipping is a major source of income, like a bar.
Personal Story: It was bad luck when Daniel was working at the bar. He had to perfect system of adding extra shots to a cocktail without charging. He even had a tagline he would use with all his customers: ‘I’ll take care of you [he lifts the bottle], you take care of me [he glances at the tip bucket].’ Unfortunately, even the best laid plans fall apart, especially when you try that same tactic with a secret shopper, who was hired to make sure bartenders were pouring drinks as they had been trained.
Prevention: Monitor inventory and sales closely, train staff on proper protocols, and set clear guidelines on discounts and giveaways. If you consistently remind your team that you are paying attention, especially in ways they don’t have access to, like cameras and POS reports, you can often deter theft.
4. The Show-Off
Description: Maybe it is their first server or bartending job; Whatever the reason, these folks can’t help but use the company’s products to impress their friends.
Examples: Just giving stuff away.
Likelihood: Occasional, often seen in younger staff or those new to the industry. While not daily occurrences, they can disrupt inventory and profit calculations.
Personal Story: Jared was manning the food service line on his birthday. He didn’t request off for the night because ‘he needed the money’, which I respect. That didn’t stop his friend group from coming in to wish him a happy birthday and hang out for drinks and food. As I am in the back, with the manager, we glanced up at the cameras to see him serving food to a member of the group, and then wave the friend off when he tried to pay. After two more instances of that, we had to call him back to fire him on his birthday.
Prevention: Implement strict inventory controls, use surveillance cameras, and foster a culture of accountability.
5. The Suppliers
Description: It isn’t always your team! The reps for your vendors or suppliers who engage in deceitful practices to maximize their profit. They might overcharge, under-deliver, or provide subpar products. Or a combination of the three.
Examples: Delivering fewer items than invoiced, inflating prices, or providing expired products.
Likelihood: Less common, but when it occurs, it can be impactful, especially if the deceit continues undetected over a prolonged period.
Personal Story: Our liquor rep, Kris, decided to start ‘accidentally’ sending 750ml bottles of liquor to a few locations, rather than the 1L bottles that we ordered and paid for. When it was brought to his attention, he was ‘shocked’ and promised to get to the bottom of it. Then it happened again. So I called his supervisor to find out what the problem was. Turns out that Kris had developed a habit of covering his mistakes on the backs of his customers. I don’t think he worked there long after, and he certainly didn’t work with us again.
Prevention: Regularly audit deliveries, build relationships with trusted suppliers, and seek references for new ones.
6. The Time Thieves
Description: Employees in this category manipulate their working hours to be paid for work they haven’t done.
Examples: Clocking in early, clocking out late, taking extended breaks, or having someone else clock in for them.
Likelihood: Fairly common in businesses without strict time-tracking measures. Such actions can inflate payroll costs and reduce overall efficiency.
Personal Story: It isn’t unheard-of to have team members that are uniformly on-time for every shift, but it also isn’t usually the case. Their time will usually have minutes of difference between shifts. If scheduled at 5pm, the clock will show 5:02 sometimes, or 4:57 for others. Ashley was always clocked in at 5pm exactly. Always. The problem arose once the manager watched her walk in at 5:05pm. When he checked the cameras, he saw Ashley’s best friend on the team clocking they both in at 5pm. As he checked further back, the manager found this had been going on for weeks.
Prevention: Use digital time-tracking systems requiring personal identification, monitor and review employee work hours, and set clear guidelines on breaks.