Do you know why these activities should cause concern?

 

 

 

Other Articles by Brian McMillan Sales Contests – Do They Work? A Systematic Approach to Employee Loss Deterrence in Restaurants Only Short-term Gains From Video Surveillance? How To Find What Didn't Get Rung Up Most Owners Encourage Their Employees to Steal Bar Controls The Ice Water Trick The Open-food Queen The Check Splitter 45 profit leaks Cash Controls

A server’s cash to credit card ratio is lower than the other servers A low cash-sale ratio could be a red flag that some cash sales are getting diverted and don't     end up in the cash sales amounts at the end of the shift.  Some possible reasons could be: A bartender is ringing up cash sales after serving or pouring the drinks for multiple orders.  He then attempts to remember who he collected money from and what the money was for.  Use the POSiwatch video to enforce entering the order first then serving, A server "forgets" to enter items that they do not need to get from the kitchen or bartender.  Sometimes when they "forget" items, cash customers might give them a bigger tip.  Use the POSiwatch system to verify all items are being ordered through the P.O.S. system. Whenever a low cash ratio is spotted, be on the lookout for cash sales that never reach the till. A server has a tendency to sell fewer salads, desserts, and soft drinks In many restaurants, the server gets his own salads, soft drinks, or desserts, so that a preparation ticket does not need to be prepared.  The server now has the ability to add a few extras, hoping that their generosity might result in a larger tip. Low sales of items that don't need a preparation ticket can be a sign that not all items are being entered into the POS system.  Use the POSiwatch to verify that all items served are being entered before the items are served. One server’s credit card tips percentage is higher than the others Unusually high tips can be a sign that customers could be leaving larger tips in payment for special favors.  If most of the servers are showing 15-18% tips and one is showing 21%, either that server gives unusually good service or not all of the sales are showing up in the POS system. Use the POSiwatch to verify that all sales are being recorded. A server enters salads, desserts, and soft drinks at the end of the check Servers who really know how to "work the system" will leave checks open until near the end of their shift.  This allows them to make "adjustments" before finalizing the checks.  Some of these "adjustments" could be: giving duplicate checks to different parties thus collecting twice for the same check moving items to a different check, collecting the money, then moving the items back to the original check A server has a higher number of “move table” transactions than everybody else Moving tables around in the POS system can be an indication that the server could be "hiding the pea under the shell".  When a table or order is changed and moved, the audit trail sometimes can be hard to follow. One server splits more tables than most of the other servers Increased splitting of tables for split checks can also be an indication of "working the system".  The more clever servers can find ways to cover their tracks. The average amount of a server’s miscellaneous or “open food” is low You will want to check the miscellaneous or "open food" sales for this server.  Some servers have figured out clever ways to order food or drinks while charging $0.00.  Many POS systems report these sales at the end of the day, but it is easy to miss a few which can quickly add up.

The average number of discounts is higher for one server than the others

Coupons, discount programs, and certificates are difficult to control.  Even the best controls can't prevent creative cashiers and servers faced with temptation.  Some problems with coupons:

• Servers can bring their own coupons in and "redeem" them

• Servers can help themselves to coupons in the building

Some problems with discount programs:

The server in many cases is the one who decides who is a senior, who works in the same mall, or even who is an employee.  Some servers or cashiers are much more generous with these decisions, especially with their friends.  Use the POSiwatch to verify that the servers are making the correct decisions.

A bartender tends to sell a higher ratio of bottled beers to draft beer

Bottled beers are much easier to control for management; draft beer is almost impossible to control.  A low draft beer ratio could possibly be an indication that not all draft beers are being rung up correctly.  A POSiwatch camera that views the draft handles is helpful to verify that all draft beers are being ordered correctly.  The same goes for wine by the glass versus wine by the bottle.

A bartender or cashier tends to make corrections at the end of the shift rather than being spread out more evenly over the shift

Bartenders place the cash in the till often to demonstrate to the customer that the money is ‘hitting home'. But he has a second 'till' in his pocket where he is transferring pennies from the left pocket to the right pocket. Near the end of the shift, he has several pennies to ‘cash-in', and he does his cash balancing to offset the use of one ticket multiple times or otherwise to adjust the POS drawer to match the 'corrected' journal entries.

All of these “out of bounds” situations are potential virus “red flags” that need further investigation. Proprietary POSiwatch data mining software finds the virus and automatically sends an e-mail to you, so you can research these previously hidden profit leaks. POSiwatch also provides the tools to instantaneously investigate, verify, and confirm these anomalies.