This document discusses employee theft in the food service industry. It states that employee theft accounts for $14 billion in losses annually, or 43% of all losses, and is the largest contributor to reducing profits. Some examples of common types of employee theft mentioned include cash skimming from registers, credit card fraud, voiding receipts to steal cash, and stealing food inventory. The document advocates for implementing a theft prevention program to help mitigate these losses.

1. and the hard truth about losses
in the food service industry
An educational e-presentation by LP Innovations – © 2011

2. “Drive-thru employee steals repeatedly from registers”
“Restaurant manager arrested after stealing from owner”
“Waitress sentenced in credit card theft from customers”
“Deli employee voids daily receipts…pockets cash”
“8 servers found skimming patron’s credit card to
commit fraud”
“Restaurant closes as a direct result
of employee theft”

3.  Loss Prevention
◦ Safety & Risk Management
◦ Internal & External Theft
 How much does theft cost?
◦ National Restaurant Association 4% of Food Costs
◦ University of Florida $36 billion
Don’t think theft will happen in your establishment?
It will and it can be damaging

4.  Employee Theft
◦ University of Florida $14 billion / 43%
◦ U.S. Chamber of Commerce 75% employees steal
One-third of bankruptcies attributed to theft or error
“Employee theft is the largest contributor to loss and
is affecting your bottom line.”

5.  Servers
 Bartenders
 Kitchen Staff
 Back Office
 Management
 Vendors

6.  Food & Product
◦ Raw Foods
◦ Packaged and Canned Items
◦ Meals
 Cash
◦ Cash out of the register
◦ Deposits & Accounts
◦ Receipt Manipulation

7.  Customer Information & Data
◦ Credit Card Numbers
◦ Loyalty Points & Programs

8.  Products & Supplies
◦ Kitchenware
◦ Restaurant Supplies
 Intellectual Property
◦ Recipes
◦ Business Intelligence
◦ Concept / Brand Protection

9.  Discounting
 Free Food
 Void theft
 Dropping Sales
 Tip Fraud
 Credit Card Skimming
◦ And more!
“8 servers found skimming patron’s credit card to commit fraud”
“Deli employee voids daily receipts…pockets cash”

10.  Overpouring & Shortpouring
 Dropping Sales
 Overcharging
 Product Theft
 Eating while cooking
 Collusion with Wait Staff (kitchen voids)
 Collusion with Vendors

11.  Deposit Theft
 Manipulating the Books
 Changing Daily Receipts (Post Voids, Cancel
Checks)
“Restaurant closes
as a direct result
of employee
theft”

12.  Increased Food Costs
 Lower Profit Margin
 Loss of Customers
 Employee Morale

13.  Incorporate a Theft Prevention Program into
your existing loss prevention program.
 Involve your staff through education, training
and awareness about theft prevention.
 Investigate and resolve issues involving theft
promptly.
 Understand that although theft may not be
happening now, it can occur at anytime with
anyone.
 Continue to learn about theft prevention.

14. “Drive-thru employee steals $100,000 from registers”
“Restaurant manager arrested after stealing $4,300
from owner in one deposit loss”
“Waitress sentenced in $10,000 credit card theft from customers”
“Deli employee voids daily receipts…pockets $343
cash in a single day”
“8 servers found skimming patron’s credit card to
commit $736,000 in fraud”
“Restaurant closes as a direct result of a
$3 million theft from an employee”

15.  6 Principles of Loss Prevention eBook
◦ Discusses the pertinent principles of Prevention, Awareness, Detection,
Investigation, Compliance and Resolution.
 5 Ingredients of a Food Service Loss
Prevention Program eBook
◦ Reviews the key elements of Policies & Procedures, Safety & Physical
Security, Food Safety, Audit & Investigation and Education & Awareness.
 Additional Resources
◦ Food Service Best Practice Blog
◦ Restaurant & Food Service Loss Prevention
Programs
ACCESS OUR RESOURCES

16. Losses caused by theft, employee errors and safety issues can cost a
restaurant considerably profitability. LPI provides the food service
industry with solutions focused on reducing loss, food costs and
ensuring compliance, thereby increasing your unit and company-wide
profits.
Our trusted solutions have shown proven results in various food service
environments, working with both corporate owned and franchise
operated locations across the U.S. and Canada.
Full Program Development Consulting & Assessments
Theft and HR Investigations Compliance Audits and Visits
Food Safety & Risk Reviews Training & Awareness Programs
Mystery Shopping Data & POS Analysis
Background Screening Programs Co-Sourcing Support
Visit our Website or Contact Us to learn more
© LP Innovations, Inc. 2011.