Do you use data to help stop employee theft?
If not, you could be missing some serious red flags and losing thousands of dollars to internal theft.
Discover how the right data can transform your loss prevention plan in this one-hour webinar. Restaurant industry expert and loss prevention specialist Ed Heskett will share how tracking specific transactions at the register can help operators identify potential theft, validate a theft claim, and take action to stop future fraud.
2. Goals for Today’s Webinar
Answers to the following questions:
> What data types should I follow in order to prevent theft?
> Why should data be part of every loss prevention plan?
> How can following the right theft metrics save me time and money?
> Why does data analytics play a key role in preventing future theft?
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3. Agenda
+ Additional Thoughts Before We Get Started
+ POS Theft As Seen In COGS
+ Data Points – COGs
+ Data Points – POS/Cash
+ Thresholds / Goals
+ Tracking / Trends / Anomalies
+ Recap / Setting Goals
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4. Opening Thoughts
+ Analyzing data is time consuming, but necessary
+ Think about analyzing data as checks and balances.
+ Someone at the store level and above store level needs to own the data process, tracking, following up
+ Build regular data checks into your schedule
+ The more effective the store level team is in executing your brand standards (daily, weekly, periodically),
the better
+ Understanding the numbers for what they are removes the emotion that often comes with performance
and non-performance
+ Systems = “a method of regularly inspecting what you expect”
+ Commit to doing things differently than you are now.
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5. POS theft as seen in COGS
+ It’s too late…when you see the loss /
theft in your COGS
> The theft or loss isn’t identified until seen in the
COGS, perhaps even over a period of time
> Lost Revenue = Increased COGS = Food
Served, Labor to Prepare The Food
> At this point, you are reacting and in some
cases playing “whack a mole” to get to the root
cause
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6. First Data Points
Store Level – COGS
+ Daily Variance Reports: Critical Few – Accuracy – No Bounce Backs
+ Weekly Variance Reports: Complete – Accuracy – No Bounce Backs
+ Transfer Reports / Summaries – Ghost Transfers
+ Period End Inventory Results
+ Beverage and Paper Cost Targets as a percentage of sales
+ Calculating, tracking, trending “days in inventory”
+ Example, inventory turns, increasing inventory, steady or improving PCV
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7. Beverages
+ Set goals / targets to monitor:
> Usage
> Growing inventory on the shelves
> Potential theft
+ 3% to 4% is a good starting point
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10. Calculating Days in Inventory
+ Beginning Inventory and Current
Inventory (ending) should be relatively
close to each other in dollars
+ To calculate “days in inventory”:
> Current inventory dollars, $5497 / Total
COGS, $30,726 = .1789.
> .1789 x 28 (days in a period) = 5 days.
> Influenced by delivery day, volume, case
count / size on slower moving inventory
+ Set store goals, monitor trends
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13. Protect Your Sales & Cash With Data Points
Store Level – Cash
+ “Professional thieves” steal on a budget….daily, weekly, and periodically
+ POS Register Tapes & Cashier Reports – Automated / Manual
+ Transaction Compliance / Cashier Performance Log
+ Armored Car Users – End of Shift Reports
+ Shift Change Documentation – Handing off the safe
+ Validated Deposit Slips
+ Weekly Schedule (follow up on scheduling
and deployment of the cashiers)
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15. Pay Attention To The Details
+ Typically, MICs focus on one number: cash accountability…
“how much cash am I suppose to have?”
+ What else is the shift close tape / report telling you?
+ Deletions in this example are acceptable ($107, 4.85%)
…but are they?
+ Over rings / voids
> 1 for $3.20
> Is there documentation
+ Employee meals / other discounts
> 10 for $29.48 on a late night cash drawer
> Documentation?
+ Coach, train, feedback with the cashier NOW!
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16. Accountability for Cashiers
+ Store level compliance is a must - every
meal slip, every void / refund slip, and
deletion performance.
> Handle missing documentation like missing cash!
+ And the MIC – What is their role in
compliance?
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17. Trends and Comparisons
+ Trends can only be identified through
tracking, manual or web-based solutions.
> Manual cash performance logs
> Track metrics by cashier, over time
+ Web-based programs do the work for
you - compares cashiers, identifies
trends.
23. The Power of Total Metric Tracking
+ Example of 7.0% of sales - for a location / cashier, over time
> Totals found in manual tracking or on a Dashboard
> Your brand may vary
+ Deletions before = 5.50%
+ Deletions after = .20%
+ All discounts = 1%
+ Voids / Refunds / Over Rings = .10%
+ Cash +/- = .20%
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25. Where Do You Go From Here?
+ Investigate
+ Review transactions, trends / if available
+ Review schedules - common employees working?
+ Review DVR Footage
+ Who is “really” working the register?
+ Review manager register codes
+ Surprise cash audits
+ Speak with the employee(s)
+ Set goals / daily feedback
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26. Recap of Today’s Goals
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Answers to the following questions:
+ What data types should I follow in order to prevent theft?
> Web-based solutions work best. COGS Trends / POS Trends
> POS reports, from POS or Back of the House Systems
> Follow deletions, voids, discounts
> COGS Reports (cost of beverage, cost of paper, PCV results, over time)
+ Why should data be part of every loss prevention plan?
> Removes the emotion from the performance…believe the numbers.
> Keep the team’s eyes on what is really important…your team / your guests.
> Better productivity / positive work environment
27. Recap of Today’s Goals
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+ How can following the right theft metrics save you time and money?
> Addressing anomalies as they occur
> Tracking and addressing outliers, and addressing the issues before they blow up
> Keep you out of investigations and working on what is really important
> One organization reduced discounts by .25% = $300,000 / year!
+ Why data analytics play a key role in preventing future theft.
> The name of the game is get the money in the register.
> Well controlled POS metrics will increase your sales and reduce / prevent theft.
> Increased Profits