Who might be stealing from your club?

It might be the employee who, whenever alone at the register, simply doesn't ring up round-dollar cash sales but pockets the money instead. Or perhaps the one who slips out the back door on his smoko breaks – and sneaks bottles of expensive wine into his car a few nights each week.

Possibly it's the bartender who 'forgets' to charge when his mates come in to drink, and makes $90-$100 a shift running lucrative under-/over-pouring and 'house-liquor-for-brand-name' scams. Could the kitchen hand be smuggling out packets of ham, cheese, bacon, and coffee hidden in the trash bags?

Or maybe the chef has 'private arrangements' with his suppliers in which, although signed-for as received, some cases of prawns, steak, and other stocks always 'stay on the truck' to be sold down the road later for cash. Or even the duty manager whose POS access-code allows him to 'void out' a number of sales at the end of the evening, thereby reducing the total takings to steal the difference – or manipulate the systems in any of a dozen other ways.

It could, in fact, be any of them that are causing the steady drain on the business' net profits. The methods described are actually quite common, and are only a few among the many scores of theft-styles used by dishonest employees to steal from their jobs. It is also far more widespread than most owners ever realise or imagine, because so few of these cases are ever prosecuted or publicised.

The main questions: IF it were happening in your establishment, by one method or another, how would you learn of it? Would it likely be through your operational controls and systems monitoring, or just by luck or accident? How long could it go on until you did discover it (if ever), and how much could it cost you? If your profits should be better than they are, then possibly this is an area that warrants closer attention.

Did you know??.....That in a NZ business magazine survey, 79% of employees (hospitality, restaurant, and retail) anonymously admit they steal from their employers (or are quite willing to do so, given the opportunity). In a 'sampling' of 12,500 internal theft cases, only 3.3% were even referred to the Police – with a tiny fraction ever making it to court. Most employee-thieves are just fired, and with a 'clean' record, go get new job, do it again. In fact, though, the vast majority of such thefts are never even detected.

The usual reasons for 'inertia' toward good shrinkage controls are: Complacency ("Can't-happen-to-me"); Over-trust ("I know all my people"); A belief that security 'costs too much', or that 'losses' are just an inevitable 'cost of doing business'; or that 'security doesn't make money'  (actually it does – new loss prevention efforts have helped thousands of businesses lift their profits – from 10% to as much as 60%).

Did you know??..... A huge percentage of food- and liquor-service operations have little/no idea how much they are losing to theft and fraud, and therefore take few preventative measures or advice. (This includes thefts of cash, food and liquor stocks, equipment, excessive 'perks', 'mates rates' and 'freebies', time theft, and other forms of loss and abuse). Yet uncontrolled 'shrinkage' is responsible for half of 'profit stagnation' problems – where the business should be thriving but is sluggish instead.

Did you know??..... With most employee-theft cases, in 'hindsight review', what is clearly shown is how easily those simply those crimes could (should) have been prevented – or a much earlier 'warning bell' rung – by means of improved controls, tighter procedures/systems, and raised management awareness.

DID YOU KNOW that CLUBS NZ has an 'on board' Security/Shrinkage Control Consultant who can offer help and advice in all areas of loss prevention, as a free MEMBER SERVICE- BENEFIT?

This is a Security/Loss Prevention 'Hot-Line / Help Desk'– an extremely useful and FREE advisory service, operated by Steve Davis – a 26-year business security specialist. Steve is Security Consultant to the Clubs NZ, Restaurant Assn, Franchise Assn, NZ Retailers Assn, and other trade-industry groups, and has presented loss prevention workshops around NZ to club and restaurant associations' members.

Members may ring Steve's toll-free number (0800 12 THEFT) with any questions, problems, or concerns in relation to any security-related topics or loss/theft issues, and receive independent, qualified advice. All calls are treated with total confidentiality.

Steve can, if desired, also provide on-site consultation/assistance with security issues in our industry. He conducts internal 'theft-vulnerability' auditing and loss reduction training; consults on internal controls and procedures, POS systems, and electronic security equipment; and can advise on both investigative and preventive approaches (where theft may be currently suspected).

Call Steve Davis direct on 0800-12-THEFT (or 0800 12 84338).

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