Ed HeskettLoss Prevention Manager

Best Practices in Your Loss Prevention Program

#DelagetLPWebinar

Agenda

• What is loss prevention?

• Most common methods of theft

• Loss prevention best practices

• POS metrics

• Additional tips to curb theft

• Q&A

#DelagetLPWebinar

• Guarding against theft and fraud

• Customer and employee safety and security

• A great time-saver….who plans investigations into their calendar?

• Loss Prevention = Discipline

What is loss prevention?#DelagetLPWebinar

• Training, coaching or action that develops self-control, orderliness and efficiency

• Teaching the policies and procedures to the entire team• Clearly defining roles and responsibilities in

accountability• Creating, adjusting, defining thresholds• Having systems in place to monitor the performance vs

the thresholds• Leading by example, modeling your expectations for

your team

What is discipline?#DelagetLPWebinar

The truth is in the numbers…

• 75% of employees have stolen cash or product at least once

• 54% of current employees eat for free

• 34% have witnessed theft

Are your employees really stealing from you?#DelagetLPWebinar

• Deletions / Cancels / Voids

• Promotions and discounts

• Over rings

• Voids/refunds

• Handing food over the counter

• Cash

Theft at the POS Level#DelagetLPWebinar

• Inventory manipulation

• Theft of raw product

• Stealing supplies

• Uniforms

• Time!

Other Forms of Theft#DelagetLPWebinar

• Candidates with previous restaurant / brand experience; Red Flag?

• Above-store leaders must have a say in re-hire and employee transfer hiring decisions

• At the employee level:

– Reference checks

– Food service background

• At the manager level:

– Background checks

– Pre-employment drug testing

Hiring Best Practices#DelagetLPWebinar

• Hire all employees as Food Champions / Line Personnel

• Utilize certified team trainers

• POS practice mode

• Role playing

• Shadow new employees– Don’t allow them to learn how to steal through

trial and error due to poor training

Onboarding & Training Best Practices#DelagetLPWebinar

• Minimize the opportunity for too many hands in the till

• Schedule overlap time

• Keep employees on their assigned cash drawer

• Consider implementing a “head cashier” or “lead cashier”

Scheduling & Deployment Best Practices#DelagetLPWebinar

Pay Attention to POS Metrics

Deletions / Voids / Cancels

Before Total

After Total

Cancelled to $0

#DelagetLPWebinar

Pay Attention to POS Metrics

Uncover true theft

Over Rings

Refunds

Voids

Reduce honest

mistakes

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Training to lower

thresholds

Pay Attention to POS Metrics

Discounts and

Promotions

Change manager

codes regularly

Clearly define

policies

Discounts ≠ Waste

Eliminate open dollar

& open percent

discounting

Documentation is key

#DelagetLPWebinar

• Dedicate a minimum of one hour each week to monitoring / following up on POS results

• Follow up on store-level paperwork every visit – let them know you are looking

• The store team must own the follow up, shift-to-shift, day-to-day

• Trend results over time

• Watch for drawer keys in use during cashier / manager shifts

Helpful Best Practices for Above Store Leaders#DelagetLPWebinar

• Watch for low drink sales percent

• Watch for cash overages and bounces

• Conduct surprise cash audits

• Monitor late night POS activity– Transaction count

– Check averages

• Motivate through competition

• Discipline behavior – don’t wait for a loss!

More Helpful Best Practices#DelagetLPWebinar

A well-defined loss prevention program…– Is executed daily

– At the shift level

– Improves operations

– Improves guest metrics

– Reduces mistakes due to ignorance, carelessness and improper/incomplete training

– Prevents operational loss and theft

Recap#DelagetLPWebinar

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