Loss Prevention Best Practices
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Transcript of Loss Prevention Best Practices
Agenda
• What is loss prevention?
• Most common methods of theft
• Loss prevention best practices
• POS metrics
• Additional tips to curb theft
• Q&A
#DelagetLPWebinar
• Guarding against theft and fraud
• Customer and employee safety and security
• A great time-saver….who plans investigations into their calendar?
• Loss Prevention = Discipline
What is loss prevention?#DelagetLPWebinar
• Training, coaching or action that develops self-control, orderliness and efficiency
• Teaching the policies and procedures to the entire team• Clearly defining roles and responsibilities in
accountability• Creating, adjusting, defining thresholds• Having systems in place to monitor the performance vs
the thresholds• Leading by example, modeling your expectations for
your team
What is discipline?#DelagetLPWebinar
The truth is in the numbers…
• 75% of employees have stolen cash or product at least once
• 54% of current employees eat for free
• 34% have witnessed theft
Are your employees really stealing from you?#DelagetLPWebinar
• Deletions / Cancels / Voids
• Promotions and discounts
• Over rings
• Voids/refunds
• Handing food over the counter
• Cash
Theft at the POS Level#DelagetLPWebinar
• Inventory manipulation
• Theft of raw product
• Stealing supplies
• Uniforms
• Time!
Other Forms of Theft#DelagetLPWebinar
• Candidates with previous restaurant / brand experience; Red Flag?
• Above-store leaders must have a say in re-hire and employee transfer hiring decisions
• At the employee level:
– Reference checks
– Food service background
• At the manager level:
– Background checks
– Pre-employment drug testing
Hiring Best Practices#DelagetLPWebinar
• Hire all employees as Food Champions / Line Personnel
• Utilize certified team trainers
• POS practice mode
• Role playing
• Shadow new employees– Don’t allow them to learn how to steal through
trial and error due to poor training
Onboarding & Training Best Practices#DelagetLPWebinar
• Minimize the opportunity for too many hands in the till
• Schedule overlap time
• Keep employees on their assigned cash drawer
• Consider implementing a “head cashier” or “lead cashier”
Scheduling & Deployment Best Practices#DelagetLPWebinar
Pay Attention to POS Metrics
Deletions / Voids / Cancels
Before Total
After Total
Cancelled to $0
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Pay Attention to POS Metrics
Uncover true theft
Over Rings
Refunds
Voids
Reduce honest
mistakes
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Training to lower
thresholds
Pay Attention to POS Metrics
Discounts and
Promotions
Change manager
codes regularly
Clearly define
policies
Discounts ≠ Waste
Eliminate open dollar
& open percent
discounting
Documentation is key
#DelagetLPWebinar
• Dedicate a minimum of one hour each week to monitoring / following up on POS results
• Follow up on store-level paperwork every visit – let them know you are looking
• The store team must own the follow up, shift-to-shift, day-to-day
• Trend results over time
• Watch for drawer keys in use during cashier / manager shifts
Helpful Best Practices for Above Store Leaders#DelagetLPWebinar
• Watch for low drink sales percent
• Watch for cash overages and bounces
• Conduct surprise cash audits
• Monitor late night POS activity– Transaction count
– Check averages
• Motivate through competition
• Discipline behavior – don’t wait for a loss!
More Helpful Best Practices#DelagetLPWebinar
A well-defined loss prevention program…– Is executed daily
– At the shift level
– Improves operations
– Improves guest metrics
– Reduces mistakes due to ignorance, carelessness and improper/incomplete training
– Prevents operational loss and theft
Recap#DelagetLPWebinar