The diverse nature of restaurants increases the opportunities for theft, due to a variety of factors. The kitchen operates relatively autonomously, with a distinct separation from the dining area. The receiving doors offer access by a variety of people, with an equal opportunity for employees to remove goods. Portioning, yields, variable pricing of wholesale goods, fluctuating peak demand times, varied menus and other factors offer openings for theft and fraud.
Busy periods
While theft in retail settings drops off during peak periods (because the opportunity decreases), more theft occurs in restaurants at this time and in extremely slow periods than in shoulder periods. Primarily, this is because almost all theft and fraud in a restaurant occurs at the hands of or in cooperation with employees. It is more difficult to monitor individual meals, orders and portions during rush hour, so front end staff is more able to manipulate opportunity to their advantage. In slow periods, collusion and back-door loss, along with “freebies” becomes more common. In the dining area, wait staff and cashiers are exposed to myriad opportunities.
Scoring (Low to High) 0-10
Drive through
The drive-through is a great “window of opportunity” for staff to provide meals to friends. Top-ups and add-ons occasionally occur, where a customer may add to an order spontaneously as they arrive at the window, allowing the staff to accept cash for the transaction and pocket the amount. Orders often are packed by the same person who presents the order at the window, allowing for additional opportunity.
Scoring (Low to High) 0-10
Skip the Dishes
The proliferation of Ship and Uber drivers can create confusion at the delivery counter, leading to error, but also allows for sweet-hearting with the driver.
Scoring (Low to High) 0-5
Kitchen prep area
This part of a restaurant is exposed to unique opportunities, different from the front end. There is less likelihood of sweet-hearting with friends, since the only contact usually is in the dining rea. This would require the cooperation of another staff member: either cashier or wait staff. However, the preparation staff are more able to steal outright, often placing items in the garbage for later retrieval. They also are more prone to receiving door theft and fraud. If their bags and purses are in their work area, they may steal and conceal easily.
Scoring (Low to High) 0-10
Ordering
The staff that complete orders (including managers) easily can redirect product to their own homes, arrange deals with suppliers and drivers, arrange for a kickback from a preferred supplier or create false invoices. We have found this area to be very problematic in our investigations, both because of the direct opportunity and the inability to effectively monitor counts.
Scoring (Low to High) 0-20
Catering
Catering offers a chance for high-volume loss. One client had a manager who arranged buffets to be delivered to various banquet halls, but almost every time, over-ordered for each banquet. We discovered that she was operating her own catering business, and not only delivered to those venues, but stockpiled supplies in a rented kitchen for special order events.
Scoring (Low to High) 0-10
Overcrowded storage and refrigeration
It is difficult to inventory a crowded shelf, stockroom or fridge. In addition to the increased risk of stock spoilage, this opens a chance for staff to steal items without them being noticed.
Scoring (Low to High) 0-10
Menu too diverse
When a menu is too diverse or expansive, it makes it difficult to track where poor yields are occurring. In turn, that makes it easier to hide thefts and frauds, or to isolate who is causing the shrinkage.
Scoring (Low to High) 0-10
Snack items
Fast food restaurants and convenience stores are particularly vulnerable to employee casual theft and snatch-and-run shoppers or clients, because of both the immediate desirability of the items and ease of access. Because these items often are available in volume, they are more difficult to track and pinpoint the reason for shrinkage as well.
Scoring (Low to High) 0-20
Management
Managers have, by far, the greatest opportunity for theft and fraud. One manger, who also was a junior partner in a three-restaurant chain, diverted almost all the inventory he needed for his covert restaurant operation. Another, whom the owner trusted, helped us install cameras, but the base device, hidden in the false ceiling, disappeared almost immediately. When we re-installed another unit, we arranged with the owner to give us access unbeknownst to the manager. He deactivated the second device he helped us install, but we caught him using the third system.
Scoring (Low to High) 0-10
Alcohol: Mixed drinks
Alcohol sales are, by nature, variable, with less ability to track yields accurately, even with dispensers. One of the key indicators of a problem where dispensers are used is to see a free-standing bottle of a brand or type that would normally be on the dispenser racks. This usually shows that the bartender is selling watered drinks in the tap bottles or has brought in his own supply to sell on the side. However, that is just one method for stealing from the business. The best deterrent, in addition to carefully controlled, monitored and metered dispensing, is to use cameras.
Scoring (Low to High) 0-20
Bottle returns
While bottle refunds and returns have been largely relegated to the past, some jurisdictions still accept them (particularly beverage room vendors). Here, because the volume is so variable, errors and intentional fraud by staff is prevalent. One vendor employee, who also was responsible for stocking the beverage room coolers, regularly skimmed $50-100 nightly from the returns, sometimes shorting a customer but often simply refunding the beverage room empties. Although the shortage showed in quarterly inventories, it took almost a year for the owners to respond by investigating. With over ten employees, it became almost impossible to identify which ones were stealing.
Scoring (Low to High) 0-10
Gift cards
While most incidents of fraud with gift cards are caused by external sources, a poorly managed gift certificate program is susceptible to loss at the hands of employees. This can involve both sales and redemption. They are particularly vulnerable where there is an additional incentive, such as a free food item rebate. This allows the employee to “redeem” a gift card that has just been purchased by them, then also take advantage of the free offer.
Scoring (Low to High) 0-10
Wastage sheets
Spoilage and wastage records need to include reasons, time of occurrence, total items spoiled, date and employee signature. High wastage may indicate purely inadvertent error and actual careless food handling but also may allow for theft and fraud.
Scoring (Low to High) 0-20
Orders shipped by weight but portioned by count (e.g. tomatoes)
Some restaurant items, like fruit and vegetables (e.g. tomatoes), or meat (portion or weight), may be received by weight but portion controlled by unit. This allows for both fraud and theft or error. Such items should be both counted and weighed upon receipt.
Scoring (Low to High) 0-10