By Barowners.com
Theft is an all too common problem in the bar industry. It's estimated that 50% of all bartender employees steal and that percentage is even higher when you take into account theft from additional staff members like servers or managers.
Such a prevalent case of thievery can make any bar owner a little paranoid. But how do you know if your employees are stealing from you? How can you be sure that theft is occurring in your bar?
If you suspect that something is going on, there are some clear signs to look for. These theft indicators will let you know that someone is stealing from your bar in some way -- by stealing money, inventory, giving away free drinks, bringing in outside liquor, etc.
The presence of one indicator should give you reason to suspect that you're getting ripped off. If you find more than one indicator, the chances increase that someone is stealing from your business and you must take immediate action.
Top 10 Bar Theft Indicators:
Theft Indicator #1: Uneven Drawer Counts
One of the first things to do when you suspect theft is to take an unannounced mid-shift "Z" reading of the cash register or pos system. Taking the reading by surprise should catch discrepancies between what money should be in the register and what is actually there. If you find that a drawer is under or over a significant amount, the employee responsible for that drawer may be stealing.
Often bartenders will keep track of how much the drawer is under or over and they will pocket that money or make up for it before the end of the night. An employee that has consistent uneven drawer counts is probably taking money out of the register.
Theft Indicator #2: Higher Pour Cost
There are lots of things that can cause a rise in your pour costs and theft is one of them. When employees steal inventory or money (in nearly any way) it drives up your pour cost.
Investigate if high pour cost is the only indicator of theft. If it is, be sure to evaluate other possible reasons for high pour cost before you make any staff changes.
Theft Indicator #3: Too Many Cash Register Commands
Take a look at the readings from your cash register or pos system. If you notice an excess of void or no sale cash register commands, theft could be occurring.
Employees may not be ringing in sales and keeping the cash or they might be stealing cash directly out of the register. Require manager verification for voids and discourage employees from using the no sale key. You could also have employees keep a record of why no sale was used during their shift.
Theft Indicator #4: Customer Complaints
Does it seem like customers are complaining more frequently? If you're hearing customers complain about "weak" drinks, shortchanging or not receiving a receipt, it could mean that employees are stealing.
By making drinks weaker, bartenders can save some of the liquor for a later drink that will be sold off the record. Sales without receipts also point to drinks that were sold with the bartender pocketing the money. Shortchanging is just as bad because it means that employees are stealing cash from customers.
Start putting tighter cash controls in place. Make sure that every sale is rung into the register and that every customer gets a receipt.
Theft Indicator #5: Frequent Breakage
Check your liquor bottle breakage charts and see if there's been an unusual amount of breakage lately. Accidents sometimes happen, but if it seems like your breakage numbers have recently spiked theft may be occurring.
Employees might be stealing bottles or selling the contents and keeping the money for themselves. Make a new rule that breakage must be verified by a manager when entered into the record.
Theft Indicator #6: Abnormal Inventory Purchasing
Have there been any changes in your inventory order recently? Are you ordering more? If the order you place with your supplier is getting bigger and bigger but your sales have remained the same, someone is probably stealing from your bar.
Employees could be stealing alcohol from the storeroom or selling drinks and pocketing the money. Double check inventory records (like requisition sheets) to see if the records are inconsistent with your sales.
Theft Indicator #7: Counting Systems
Often when bartenders steal cash from the register they need to remember how much money is in the register. But this is hard to do while you're working. So to keep track of how much the register is over or under at any given time, many bartenders use counting devices.
A counting device can be almost anything -- a pad and paper, stacks of cocktail swords, matches, even stacks of glasses can be used as a makeshift abacus.
If you spot a counting device behind the bar or near the cash register, theft is likely happening at your bar. Remove the counting device at once and do a "Z" reading of the cash register if appropriate.
Theft Indicator #8: Lower Sales
There are lots of possible reasons for lower sales (like seasonality or a new competitor) so make sure you explore other options if this is the only theft indicator you can find.
If there's no other explanation for low sales, employees may not be ringing sales into the register and taking the money. Apply better cash control procedures and have management on the floor to make sure that all sales are rung into the register or pos with receipts for every sale.
Theft Indicator #9: Low Bartender Productivity
Your bartenders should have similar sales based on the shifts that they work. If you find that one or two bartenders have particularly low productivity, those employees are suspect.
Track each of your bartender's productivity by looking at their sales per shift and per hour. If there's someone who stands out as an underperformer, that person might be stealing. Take a closer look at that bartender and determine if theft is the reason for their low productivity.
Theft Indicator #10: Unusually High Tips
While employees that earn decent tips are good for your business, if you notice that an employee is having an unusually high amount of gratuities you should keep an eye on them.
Its one thing to have a good night, but if staff members are bringing in more tips without additional effort, they could be supplementing their tips with cash from the register or selling drinks without ringing them in.
Bring the issue up in a staff meeting and ask the employee to share how they've been able to increase their tips. Tighten cash controls and closely monitor suspect employees.
It's hard to tell if theft is occurring if you don't know what you're looking for. Analyze your operation and see if you uncover any of these theft indicators -- if you do, take action immediately to put an end to theft at your bar.
