For most QSR owners and operators, the loss prevention and workforce retention struggle is all too real. Between theft, loss, false legal claims, high turnover, and fierce competition for employees and customers—boosting profits and ensuring a great customer experience may seem like an insurmountable task.
As a restaurant owner or manager, protecting your employees and customers is one of the most important but very challenging security concerns. What signs should you look out for when evaluating and changing a loss prevention strategy for your restaurant?
To finish this series on video intelligence, video surveillance is most commonly seen as a tool for identifying negatives, like shoplifting and employee theft, but it can also be an excellent way to show staff that you understand the things they’re excelling at.
“We’ve realized a sustained and predictable profit impact from Envysion over the last seven years and we are continually finding new ways to use video to improve our restaurants’ performance” says Tim Spong, Chipotle’s director of safety, security and risk At Chipotle. In fact, the restaurant chain’s profit margins are among the highest in the industry, despite managing 50,000 employees across over 1,750 locations.
Anyone who follows current events knows that this has been a stellar year for hackers—over the last 12 months, several big name retailers including Home Depot, Michaels and Target have all experienced breaches of sensitive consumer data. According to Forbes.com1, Target estimates that the data breach to their company represents a net loss of $148 million dollars to shareholders. And of course, it’s nearly impossible to calculate the longer-term financial impact due to loss of consumer confidence.
This is the third and final article in my series about loss prevention for restaurants. The first covered how to identify employee-caused cash theft, and the second reviewed other employee-caused activities that lead to losses. Today, I’ll share an innovative approach to help you identify, view, and address loss activity in your restaurant.
In the first article of this series I shared common sources of employee-caused cash theft in restaurants. To continue sharing areas to watch for when it comes to loss prevention for restaurants, today I’m focusing on other areas of activities to consider:
For restaurants — in particular quick service restaurants (QSR) and fast casual restaurants, a key ingredient in protecting the bottom line is loss prevention, especially minimizing employee-caused losses. In fact, according to the National Restaurant Association, 7% of restaurant sales are lost due to employee theft. While restaurants often lack the benefit of trained loss prevention personnel working with them to monitor and control activity that erodes their bottom line, technology and approaches available today can help large and small restaurant chains alike to minimize employee-caused losses. Before you prevent losses, though, you have to identify the possible causes. Employee-caused losses can include operational performance issues and collusion with vendors, robbers, and burglars, but simple cash transactions are more often the source of employee-caused losses in restaurants.