Introduction
Under-ringing the correct price of a drink order and pocketing the difference is a form of theft that can occur in bars and restaurants. It is one of most common ways bartenders steal. This practice involves charging the customer less than the actual price of the drink and keeping the difference.
While it may seem like a harmless way to make some extra cash, it is illegal and can lead to serious consequences. In addition to being unethical, under-ringing can result in significant financial losses for the establishment. It can also damage the reputation of the business and lead to a loss of customers.
TheGrift
Here’s the Grift!
This bartender, who is probably making at least a few hundred bucks a shift and $11 to $15 bucks an hour, doesn’t feel he is making enough. Maybe he is hard up for money or has a drug or gambling problem. Either way he or she is your hidden partner since they feel your money is theirs.
How it works
The bartender notices the guest will be paying with cash. He makes their drink or drinks and quotes the correct price. He proceeds to go to the bar and ring up lessor priced items, pull the quoted correct change, leaving the balance in the register to be pulled out later. The guest probably has no idea and receives their quoted correct change back. This may seem inocent, but it not; and its could be costing you a fortune.
Another variation is the bartender makes the requested drinks and quotes a larger amount that for correct price. Meaning, they quote $10 for a $7 drink. Again pocketing the difference, and again you hope the customer doesn’t notice. However, if they do you loose a customer coming back.
The Problem
When a bartender under-rings the correct price of drinks, it can result in significant financial losses for the establishment. Here are some examples of how this can happen:
Lost revenue: When a bartender under-rings drinks, the establishment loses out on the revenue that should have been generated by the sale of those drinks. This can add up quickly and result in significant financial losses over time.
Form of Theft: When a bartender quotes a prices to the customer, rings up a lower price and keeps the difference between the quoted price and the actual price; that is Theft.
Damage Reputation of business: Under-ringing is illegal and unethical and can damage the reputation of the business and lead to loss of Customers.
Inventory discrepancies: Under-ringing can also lead to discrepancies in inventory management. If bartenders are not ringing up drinks correctly, it can be difficult to keep track of how much alcohol is being used and how much is left in stock. This can lead to over-ordering or under-ordering of supplies, which can be costly for the establishment.
Legal consequences: Under-ringing is illegal and can lead to legal consequences for both the bartender and the establishment. The establishment can also face legal action and may be required to pay restitution to customers who were undercharged for their drinks. Some states can require that the full price of the miss-priced drink be refunded.
Tax consequences: Under-ringing can lead to under reporting of sales and income tax, which can lead to significant fines and fees. The owners of the establishment are legally required to collect and pay sales and income taxes. So your employees are taking income you are responsible for.
Solutions
To prevent under-ringing, bar and restaurant owners should implement proper inventory management systems. They should also keep a close eye on their employees and watch for any suspicious behavior. One way to do this is by using an inventory control system that can help identify discrepancies in sales and inventory.
The following are some simple steps to prevent under-ringing (theft) in your bar:
- Have a clear policy in your employee manual related to properly ringing in the correct menu items with correct prices.
- Have a printed and or digital menu with correct pricing that is clearly available for the guest to view.
- Have the name of each product in the POS; for example: don’t use a button “Well Drinks” as a button for all well drinks. These generic buttons are typically used to under-ring drinks.
- Have the proper amount of change banks and back up change so bartenders are not cashing out tips for change throughout the night. The easiest way for them to pull stolen money is pretending to need change mid-shift.
- Have a policy preventing cashing out tips through the night. Related, invest in a cash counter so bartenders can count tips after their shift.
- Monitor the transactions between bartenders and servers tickets at the bar. Servers, without proper monitoring, can partner with bartenders to steal by adding notes to actual drinks for more drinks. For example, server could properly ring up a beer and in the note to the bartender have a message “Two Patron Shots”. Which would go as un recorded sales.
Customers can help Too!
Customers who suspect that they have been undercharged for their drinks should bring it to the attention of the bartender or server. If the establishment refuses to correct the mistake, customers may have legal recourse. In some states, customers are entitled to receive the item for free if it rings up at an incorrect price.
Conclusion
In conclusion, under-ringing drinks is a serious offense that can have severe consequences for both employees and businesses. It is important for bar and restaurant owners to take steps to prevent this type of theft from occurring. Customers should also be vigilant and report any suspicious behavior to management.
Additional Resources
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