According to an article in Nation’s Restaurant News, theft in the food and beverage industry accounts for $6 billion per year in lost revenue, approximately 4% of sales. The average theft per restaurant worker is close to $500 per year, with 3/4 of employees admitting to stealing.
One major source of loss in the F&B industry is manipulation of the point of sale system. POS fraud is so prolific because it is complex and difficult to detect, and the range of scams and resourcefulness of employees pose a challenge for even the most savvy operators. Many operators feel forced to accept loss as a fact of doing business, but each POS scam leaves behind a trail of transactional data that can be used to detect fraud and implement controls designed to prevent future loss.
Bars typically see a high volume of cash business, and bartenders usually have complete control over which drinks they pour and which they ring into the POS system. In high-end club environments, VIPs and complimentary items are a standard part of the business. Conventional approaches to detecting fraud in these environments involves manually reviewing individual checks, identifying anything considered ‘suspicious’ and following up with the employees involved, but that allows smaller patterns in behavior to slip through the cracks. Exception-based reporting in high-volume bar businesses often results in endless lists of individual transactions, which take a considerable amount of time and resources to investigate. Advanced analytic solutions like Avero Loss Prevention are focused on pinpointing proven trends of suspicious behavior over time, which results in fewer false-positives and more actionable information in each alert.
Do you know the most common type of fraud in bars and nightclubs? Should you be on the lookout for happy hour promotion manipulation, or should you focus on VIP comp abuse? In this free Avero whitepaper, you’ll find proven strategies for leveraging the data you already have in your POS system to detect transactional fraud and limit your losses, including practical advice on:
- Common types of scams in bars and nightclubs
- Tools used to disguise POS fraud
- How to identify fraudulent transactions
- What type of suspicious behavior to look for
By reading this detailed account, you’ll be able to better identify theft in your bar or nightclub and make any necessary changes to deter fraud and increase profits in your business. Learn more about Avero Loss Prevention here, and check out the different types of theft here.
