Introduction
Server theft is a common problem in the restaurant industry and can take many forms. One of the most common ways servers steal money is by using the “floating tab” scam. In this scam, a server takes an order from a customer and then pockets the cash payment instead of ringing it up on the register. The server then creates a “floating tab” by adding the amount of the unpaid bill to another customer’s bill. The server then pockets the cash payment from that customer as well, and so on. This scam can go undetected for some time, resulting in significant losses for the restaurant.
The Problem
The impact of this type of theft on your business can be significant. Not only does it result in lost revenue, but it can also damage your reputation if customers become aware of the problem. Customers who feel they have been overcharged or cheated are unlikely to return to your restaurant, and they may also share their negative experience with others.
Solutions
To prevent server and bartender theft, it’s important to implement strong controls and procedures. Here are some steps you can take:
Require servers to ring up all orders immediately: This will help ensure that all transactions are recorded accurately and reduce the risk of theft.
Route all drink tickets through bartenders: Limit the number of items a server can get for themselves (i.e. draft beers, sodas, salad, soups etc.). These are the typical items that can be moved from tab to tab leading to your cash sales being stolen.
Save all drink tickets from the bar printer and review if necessary: Basically, no ticket no laundry. Servers cannot receive a drink without a ticket.
Use any POS programs that alert management of items moved to a new tab: While there are legitimate reasons to move items to a new tab (split checks, spills etc.), monitor it on the go. Any servers with an unusual number of items being moved should be monitored.
Monitor POS reports that measure the number of items moved to new tabs by servers: Your POS has reports for this, do weekly checks of items moved by servers and bartenders. Those with a significant number more than the average staff should be monitored.
Monitor checks closed to cash to see how many have items moved to new tabs: This scam is related to cash tabs closed by your bartenders and servers. If your cash tabs have more moved items, comps or voids; you have a problem.
Provide regular training on how you detect and prevent theft: Make sure your servers are aware of the risks of theft and how you monitor suspicious behavior.
Implement a system for tracking cash payments: This will help you keep track of all cash transactions and reconcile them against sales data.
Reconcile sales data regularly: Regularly reviewing your sales data will help you identify any discrepancies or unusual patterns that could indicate theft.
By taking these steps, you can help prevent server theft in your restaurant and protect your business from significant losses.
Conclusion
Additional Resources
