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Avoiding Theft in Bars Tales of the Cocktail 2016

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A seminar from Tales 2016

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Avoiding Theft in Bars Tales of the Cocktail 2016

  1. 1. Avoiding Theft In Bars Philip Duff & Ivy Mix #AvoidingTheft #TOTC2016
  2. 2. #TOPOLIFE @topochicousa
  3. 3. - Co-Owner, Leyenda (Brooklyn). - Co-Founder, Speed Rack. - US Bartender of the Year 2015. @ivymix
  4. 4. - Co-Owner, door 74 (Amsterdam) - Director of Education, Tales. - Consultant, Liquid Solutions Bar & Beverage Consulting @philipduff @philipsduff
  5. 5. What Is Theft? The OED weighs in… Theft: “The action or crime of stealing.” Stealing: “Take (another person’s property) without permission or legal right and without intending to return it.”
  6. 6. What Is Theft?
  7. 7. What Is Theft?
  8. 8. What Is Theft?
  9. 9. What Is Theft?
  10. 10. What Is Theft?
  11. 11. What Is Theft?
  12. 12. What Is Theft?
  13. 13. What Is Theft?
  14. 14. What Is Theft?
  15. 15. What Is Theft?
  16. 16. What Is Theft? Cons of Theft in Bars • Culture of secrecy • Reduced guest focus • Lower recorded sales/profits Pros of Theft in Bars • Tax evasion for owner, staff • Motivated staff (or…?)
  17. 17. A Brief History Of Control Systems “HE BEHELD A MAGNIFICENT FIGUREWIELDING TWO MIXING GLASSES AND “ALL ABLAZE WITH DIAMONDS,” A JEWELRY DISPLAY THAT INCLUDED A CLUSTERED STICKPIN IN HIS SHIRTFRONT, DIAMOND CUFFLINKS AND AN ARRAY OF DIAMOND RINGS.” Edward Hingston, writing about the bartender of the Occidental Hotel, San Francisco in 1863, one Jerry Thomas
  18. 18. A Brief History Of Control Systems - 1879, Ritty’s Incorruptible Cashier, Dayton, Ohio - 1884: National Cash Register (NCR) - receipts
  19. 19. A Brief History Of Control Systems
  20. 20. The Hospitality Business In The US - 10% of all US employees - 50% of US family food budgets spent outside the home - Shrinkage (of all US industries) $50bn / year (+/-$1bn/week!)
  21. 21. What Are The Results Of Theft?
  22. 22. What Are The Results Of Theft?
  23. 23. Results Of Theft - Severely reduced morale – owners, managers, staff. - Culture of suspicion and distrust - Business can’t be properly valued (affects loans, investments, sale) - Reduced professionalism & guest focus - Reduced sales/profits.
  24. 24. Why Do People Steal?
  25. 25. Why Do People Steal?
  26. 26. Why Do People Steal?
  27. 27. Motives - “I need the money”. - “I deserve more money”. - Retribution. - Group dynamics. - Self loathing / self-destructive behavior.
  28. 28. Means - Computer & cash register codes - Keys – access to building, to liquor room, to kitchen. - “Permission” from peers
  29. 29. Means - Levels of security: what you know what you have who you are
  30. 30. Opportunity - Before shift - During shift - After shift
  31. 31. Why Do People Steal?
  32. 32. Focusing On Opportunity Alone…Makes Me Angry
  33. 33. Remove Motive - Better hiring: get to know them. What’s their nut? - Better hiring; check references. Rehire? - Better hiring; hire personality, train skills. - Better hiring; training & manage managers.
  34. 34. Remove Motive - Have a handbook; require agreement. - Set standards and procedures and policies - Theft is against policy, as is concealment or inactivity - Enforce policies consistently
  35. 35. Remove Motive – Owners & Managers Need A Life - Don’t socialize with your staff - Definitely don’t get drunk with them or sleep with them! - Have your own life and loved ones outside the bar / the industry
  36. 36. Remove Motive - Be transparent about the business & its numbers.
  37. 37. Remove Motive - Be transparent about yourself – the risks you took to get the rewards you are enjoying.
  38. 38. Remove Motive - Either be engaged in the business, or not – but nothing halfway.
  39. 39. Remove Motive - Manage transparently, fairly and systematically.
  40. 40. Remove Opportunity - Bartenders count their banks before shift. - Separate bar change bank for making change for guests. - No making change from the tip jar. - All spills, breaks and comps recorded in the POS.
  41. 41. Remove Opportunity - Random mid-shift drawer-swaps and register-reports. - Manager counts banks immediately after shift. Limit access to codes. - Weekly or monthly inventory – share detail report with staff. - Keep liquor room locked, limit access.
  42. 42. Remove Opportunity - Weekly or monthly inventory – share detail report with staff.
  43. 43. Remove Opportunity
  44. 44. When You’re Suspicious… - Track productivity - Vacation? Teams? Variance?
  45. 45. Classic Scams… - No sale button, cash payment right into the tip jar - Solution: separate change bank, so every time the register opens it’s a sale. Check the cameras!
  46. 46. Classic Scams… - Bring your own stock - Solution: weekly stocktakes, track bartender productivity
  47. 47. Classic Scams… - Underpour / Water down stock / Pass off stock - Solution: Cameras, productivity, well/premium
  48. 48. Modern Scams… - Gift cards / coupons / discounts - Solution: manager sign-off on all gift cards & discounts
  49. 49. Thank you for your attention! This deck: www.tales365.com T & IG: @ivymix T: @philipduff / IG: @philipsduff
  50. 50. #TOPOLIFE @topochicousa

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