According to a National Restaurant Association study, about 75% of restaurant employees steal from their restaurants. The same study found that the average theft amount per restaurant worker is almost $500/year, which can add up to tens to hundreds of thousands of dollars in loss for restaurant operators. Through automated loss prevention software, Avero has detected that one of the most common types of restaurant theft is through a “Transfer Scam”, which consists of transferring menu items from one guest check to another over and over again in a point of sale system.
- How the scam works: A guest orders a beer and a steak with a side of mashed potatoes. After the meal, the server presents the guest with their check, and the guest pays with cash. In the POS, the server transfers the side of mashed potatoes off that check and onto a new check. The server closes the original check in the amount for the steak and the beer, and pockets the cash for the side.
- Why the server gets away with it: At the end of their shift, the server approaches the manager on duty to request authorization for a “Guest Complaint” promotion on the mashed potatoes. The server claims the guest complained about them being cold, but the manager was too busy to ask about it earlier in the shift, so the manager has no way of confirming that the guest actually complained about the item. If guests keep paying with cash, the server can keep transferring the mashed potatoes and pocketing cash.
- How to uncover the scam: Look at the details for each transaction like the above example to see if you can validate or rationalize the reasons for transfers, voids, or promotions. It may be helpful to reevaluate your restaurant’s policy for voids and promotions – can you implement a system in which servers absolutely must notify managers of any void or promotion before the guest leaves the restaurant?
Internal controls are only helpful if they can be enforced, so before making any changes, think about the best way to hold your team accountable for following the right procedures and policies. Let Avero help you do that today.
