It’s at the back of your mind, but you don’t want to really believe it’s true, especially in your business, because you are a good manager and you have great staff.
It’s time to wake up and smell the coffee - as shocking as it sounds, 75% of employees have admitted to stealing at least once from their employer!
According to a 2004 study by Garber & Walkup, costs associated with employee theft in the restaurant industry are estimated at $3 to $6 billion
Garber & Walker go on to state “Typically, employee theft in foodservice falls into two categories: “shrinkage” the loss of inventory or “larceny” the loss of cash or merchandise. Food and liquor inventory, unpaid food consumption, credit card fraud, stolen tips, unauthorized discounts, and free food given to friends or family are just a few examples of employee theft in the restaurant industry. Moreover, these types of theft may often go undetected for long periods of time because proper internal control procedures are not in place”
But you say, “I do have proper internal controls. I have a state of the art POS system, have tight control on my food costing, and do weekly stock counts.” All those things are great controls and will make a dent in employee theft but you have to remember, the employee who is a thief, is usually pretty smart, after all they don’t want to get caught, so they know your system well and they know the weaknesses and that’s what they capitalize on and in the process help themselves to the profits in your business.
Here’s a real world example to demonstrate where the controls you put in place fall down and allow unscrupulous employees to steal from you. If you are like most people, from time to time, or maybe more often than that, you speed on the freeway. What happens when you see a speed trap or speed camera? You slow down and obey the law. (Just like your dishonest employees). But what happens as soon as you are safely past the “enforcement checkpoint”? You speed up again and break the law. Are you getting the picture?
You do your stock takes and once a week you set aside time to enter all of your supplier invoices into your POS or inventory system, and your inventory numbers are up to date – your speed trap. Remember, your dishonest employees are smart, and they know your routine, so they slow down and never get pulled over, or in this case they time their theft outside the danger zone. You know your costs should be lower but you can’t zero in on it as it gets “smoothed” between the weekly system updates.
Now what if we can put a second, third, fourth or even 6 more speed traps in place? Again, if you like to drive fast, and have ever sped up after the speed trap, only to go flying by a second speed trap just after the first one, that you weren’t expecting, all of a sudden your heart is in your throat! You know, you are most likely going to get pulled over. Same thing with your employees. Entering your supplier invoices daily or several times per day allows your POS sale system do what it is designed for – keeping tabs on your inventory & cash. Putting that control in place deters not only honest employees from attempting to steal but will also thwart your dishonest ones or risk getting caught and fired.
But who has time to enter supplier invoices every day? Certainly not you, after all, you are in business to serve your guests and not serve the POS system with your face in front of a screen entering invoices.
Exactly, and that’s where AccountsFlow E-invoicing comes in. We automatically load all of your supplier invoices into your POS system – no data entry – ever. Allowing you to automatically load and update your POS any day, any time. It will even free up the hours you use to spend once a week entering all those invoices, line by line. Additionally AccountsFlow will check to see if your suppliers are charging you the correct prices – automatically. Have rebates? We’ll calculate those and make sure you get those as well!
AccountsFlow is easy to use and quick to setup and will give you the visibility at your fingertips to once and for all, knock employee theft on the head.