3 Ways to Reduce Employee Theft Using your POS System

employee theft in restaurants

Employee theft is not necessarily unavoidable, but you’re likely to come across it at some point in your restaurant career. In fact, employee theft is considered a major problem for retail and restaurant industries and is even more significant than customer theft when it comes to restaurants in particular. According to the National Restaurant Association, employee theft accounts for about 75% of restaurants’ inventory losses — which is more than 3% of annual sales!

In order to combat these issues, it’s essential for restaurant owners and managers to take proactive steps in order to ensure honesty and integrity of inventory. Of course, traditional methods, such as shift inventory and register counts, are a great way of pinpointing which employees are stealing. However, your POS system can be extremely helpful in reducing employee theft, if used appropriately. Here’s three ways to reduce employee theft with the aid of your POS system.

1. Track and Limit POS System Access.

Too many hands in the pot can throw accountability out the window when it comes to your tracking and analytics. Utilize software protections like PIN code access in order to ensure that only staff members with the correct information can access your software system. While this won’t effectively prevent ‘buddy punching’ (clocking co-workers in and out when they are not really present), it can certainly reduce the ease of perpetration of time and attendance recording. Some systems even allow for you to simply keep track of who logs into the system with the use of magnetic strips unique to each employee.

2. Set Different POS Security Levels.

Like parental access restrictions on certain TV channels, you can set your POS system to allow for only certain accessibilities to certain employees. This ensures that each employee who logs into the system has access to only what they need, as deemed by management. By allowing employees to only access what’s authorized by their position, you can greatly reduce the likelihood of employee theft and dishonest transactions.

3. Integrate Security Cameras with Your POS System.

There are three common tricks that employees can use to commit theft in your restaurant:

  • Voiding Transactions
  • Canceling Orders
  • Processing Coupons that Weren’t Offered

Integrate video surveillance cameras into your restaurant POS system, and set the video surveillance system to record activity based on these common occurrences. In this manner, it’s much easier to identify which employees are responsible for incidents of theft – and all with the use of your POS system.

Employee theft is unfortunately part of the game when it comes to running your restaurant. Use your POS system to its full potential and help combat the issue to increase your profitability.

April G.

April G.

Graphic Designer/Content Strategist at QSROnline.com
Part Graphic Designer, part Content Strategist - April creates infographics and other marketing materials for QSROnline's lead generation and content strategy. When she's not working in Photoshop, she's practicing her vocals as the lead singer in her church's band.
April G.