The former financial controller, at a busy and very successful restaurant in the South West of England, was jailed for 20 months for stealing at least £170,000 from a business where turnover rose from under £1m to £3m in four years but profits didn’t reflect the increase.
Almost every operator has similar anecdotal stories that don’t make the newspaper headlines because proving theft is incredibly difficult when transactions and stock movement aren’t recorded, visible or fully trackable.
How can you prevent theft temptation?
Fortunately, this is where the technology built around your hospitality EPOS system really comes into its own. Especially when combined with the airtight operational procedures and clearly identified segregated responsibility, where at least two people, if not more, look after the day to day cash management.
Indeed, the certainty of being caught quickly is the most effective deterrent for the vast majority of people. After all, theft normally starts when someone, in a moment of extreme weakness, thinks no one will notice if they dip their fingers into the till and then replace the stolen cash at a later date. They, of course, don’t do this and the amounts end up quickly escalating out of control as they give into temptation.
Diligent operators use the daily data generated by their EPOS solutions to track all their transactions and easily spot unusual variances.
Key performance indicator statistics identify unlikely trends, such as too many voids, higher than average food and drink wastage, or refunds as a percentage of sales when compared to other sites or similar year-on-year sales periods.
Once highlighted you can do your own detective work and question and interrogate your data. By investigating the entire transaction journey, you can normally see where the sleight of hand has taken place.
More sophisticated EPOS systems feature ‘red light’ notification functionality where alerts are sent via email or text as soon as pre-determined benchmark criteria are breached. The same alerts can also be viewed real-time via on-line dashboards used by general managers and head office staff.
A disciplined approach to safeguarding cash and stock is essential as highlighted by an Access Hospitality client, Cirrus Inns, an ambitious fast-expanding premium multi-site pub operator with 24 sites celebrating the very best of British culture.
“Cash, alcohol and protein never mix and it is important to be able to spot and resolve variances and discrepancies. Stock control is essential to this process. Monthly stock checks together with cash reconciled on a daily basis are integral to our very methodical approach to spotting them quickly and dealing with them,” says Cirrus Inns finance director Polly Dyson.
“Reliable and trusted stock control is essential to this process. We have a very methodical approach to spotting issues quickly and dealing with them. We carry out monthly stock takes and reconcile our cash on a daily basis as part of a rigorous and disciplined philosophy that operates across the estate.”
Find out more about how you can use EPOS technology to discourage staff theft and other poor business practices eat into margins and profits.