Loss continued from previous page 4. Create an employee hotline that allows employees to anonymously alert the owner to business risks such as employee theft. 5. Reward good employee behavior. 6. Properly screen potential employees. It’s always risky to hire an applicant with a criminal record. QSR operators can control much of their exposure by focusing on just a few areas. The primary loss prevention objective for any QSR business owner is to control the point of sale. After employing pre-employment screening tools, this is exactly where you should focus. Many franchise owners recognize the value of incorporating a closed circuit television system with the existing POS system. It’s hard to argue with videotaped evidence of an employee stealing or under reporting sales. The problem with only using this approach is that someone needs to sit and review the video. More sophisticated options being used today involve smart
CCTV tools including sales exception programs which alert you to unusual transactions so you know what part of the video to investigate. We are now seeing tools, which have been used in retail for several years, migrating into the food service industry. One example is exception based reporting (EBR) software that ties into a POS system. The EBR program documents trends in transactions, which are typically related to employee theft. Many POS manufacturers recognize the added value of such programs and are building EBR tools into their POS back office systems.
prevention program and building one for your organization may be the best investment you make for increasing profit on the same or fewer customers. Mike Mershimer is formerly a Dunkin’ Brands Loss Prevention Department employee and now President of HS Brands International, a DDIFO sponsor, which operates The Mershimer Group & Service Sleuth. You can reach him at: mike@mershimer.com.
I’ve heard retail executives claim that top line sales is a “cure all” for most forms of inventory or cash loss. They say, “Just focus on sales, and everything else will fix itself.” Even if that was true years ago, it’s not going to work in 2010 when the forecast projects fewer customers standing in line. A successful operator must evaluate all options to protect bottom line profits and owner’s wealth. Knowing what is involved in an effective loss
MARCH 2010 • INDEPENDENT JOE
11