Bar Theft Reduction Procedures That Work

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Theft is like a disease in your bar. Once it begins, it spreads and can eventually damage your bar operation to the point that it can't recover. When you begin to realize that it's occurring, you fight against the theft, but by that point it might already be too late.

Fortunately there's a better way to keep theft out of your bar -- by being proactive with theft reduction procedures. So instead of fighting against the disease once you start seeing the symptoms of theft, you get vaccinated against the disease to keep it from happening in the first place.

When you decide to be proactive in preventing theft at your bar, you might not know where to start. Below are several tried and true ways of minimizing the risk for theft. Make these theft reduction procedures a part of your day-to-day operations and keep the disease of theft from taking hold in your bar.

Theft Reduction Procedure #1: Cash Control

As soon as your bar is no longer serving alcohol the manager on duty should take a "Z" reading of the cash register and take the cash drawer into the office. Tips from the drawer should be distributed by management only and register keys should be given to managers only.

Why it works:

With tight cash procedures in place, it limits the chance that an employee could steal from the cash drawer. Taking immediate "Z" readings at the end of a shift make it easier to spot theft when drawers are over or under and it will force employees to "reconcile" their theft during busy working hours when they can be easily observed.

Theft Reduction Procedure #2: Visible Management

When managers are on duty, make sure that they are circulating around the bar and observing what's going on. Remove the idea that the area behind the bar is the "bartender's domain."

Why it works:

You've heard the old saying "while the cat's away the mice will play." Having managers visibly supervising the operation in your bar will give employees fewer chances to steal without being observed. Occasionally venturing behind the bar will break some of the assumed privacy that bartenders could use for theft practices.

Theft Reduction Procedure #3: Random Register Readings

Managers on duty should perform mid-shift "Z" reading from the cash register on a random basis. The reading should be performed and then the cask drawer should be replaced with a new one.

Why it works:

Taking random "Z" reading prevents theft in two ways. For one, if a bartender is stealing, the drawer may be under or over. If it's over the bartender may have been keeping cash in the drawer to be stolen later. If it's under, the bartender might have already pocketed cash and was planning on replacing it later.

The other way that it prevents theft is because if bartenders know that random checks occur, they will be less likely to steal from the cash drawer.

Theft Reduction Procedure #4: Non-Transparency in Management

While transparency in some aspects of business is a good thing, to prevent theft there are a few things that should not be shared with anyone who isn't a part of your management team.

Figures like pour cost percentages or monthly profits can tempt some employees to steal. They might be resentful that the bar is making so much money and may find a way to capture some of those profits for themselves.

Why it works:

If employees don't know how much your bar is making, they won't have a basis to rationalize their theft.

When employees know more about the operation of your bar, they can be more intelligent about stealing. Keeping some information close to the belt will make theft easier to spot.

Theft Reduction Procedure #5: Mandatory Receipts

Another way to reduce theft with receipts is by using a box for keeping used receipts so they can't be reused for theft purposes. Get a locked box with a slit in the top large enough for receipts fit through. After the ticket is paid, it should automatically be dropped into the box.

Why it works:

When every customer gets a receipt, it's harder for a staff member to pocket money from a transaction because there's a record of the transaction. Instituting a locked box for receipts makes it difficult to reuse a receipt to steal in the future.

Theft Reduction Procedure #6: Physical Bar Changes

Adding mirrors above and behind the bar and overhead lighting (like track lighting) makes everything happening back there more visible. Possible hiding places for cash, reused receipts, or counting devises become visible.

Going one step further and installing surveillance cameras in your bar gives even more visibility into what's happening.

Why it works:

If your bartenders know that it's easy for management and customers to see what's going on behind the bar, it will discourage them from doing anything that's dishonest. Making these changes to your bar will also help managers spot bar theft if it happens.

Theft Reduction Procedure #7: Inventory Control

Only allow limited access to the storeroom in your bar. Make sure that keys to the storeroom are only held by managers and that inventory is tracked from delivery to consumption with perpetual inventory sheets, requisition sheets, par forms and records to account for breakage and spillage. Have employees help with inventory counts on a rotational basis.

Why it works:

When there is little access to inventory there is little opportunity for theft. Keeping good records will make it plainly obvious if inventory disappears. Involving employees in inventory counts helps them see how much care is taken with inventory and that missing inventory would be immediately noticed.

Don't wait until it's too late to prevent theft at your bar. Taking a proactive stance will help to stop theft before it starts and keep money and alcohol in your bar where it belongs.

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