Loss prevention is the set of strategies a business uses to reduce and prevent waste, fraud, and abuse. A good loss prevention policy is helpful in any type of business, but it’s especially important in the fast food industry. As a franchisee owner, having cameras in your restaurant can help with customer experience, speed of service, and inventory management, including food waste and fraud

According to a report from Indeed, the average quick-service restaurant has a profit margin between 6% and 9%. That means that internal or external theft can significantly impact your financial position.

A Real Example of Restaurant Theft

A manager from Dunkin Donuts in Cambria County, PA was suspected of stealing from the company. The regional manager was unable to locate missing bank deposits, which led to further suspicion.

By using DTiQ’s 360iQ, a remote management tool and intelligent surveillance system which provides owners and managers with complete visibility into their businesses, the regional manager was able to compile videos that proved the manager was stealing from the store.  

That manager is now facing more than 12 charges after stealing from the business and being made to pay back the stolen money. That’s just one example. There are plenty of other types of theft to be aware of for restaurant loss prevention.

Types of Restaurant Theft

Unfortunately, both patrons and employees can commit theft at restaurants. External theft is committed by customers, while internal theft on the staff side.

Internal Theft

Also known as employee theft. Sometimes servers and cashiers make honest mistakes that can lead to accounting discrepancies. But other times, employees intentionally “skim off the top.” This is internal theft and can include practices like:

• Giving customers extra discounts or complimentary items to get a bigger tip
• Giving free food or drinks to friends or family without supervisor authorization
• Stealing tips from a tip jar or another server
• Undercharging a customer and stealing the difference – a practice that is known as “short ringing”

External Theft

If you own or manage a restaurant, you’ve probably had a customer or two dine and dash. But patrons can commit external theft in other ways, such as lying to get items comped, or a customer may claim they never received a delivery order to get a refund.

External theft can also be committed by other parties – for example. Upon the initial review of the video, the attorney saw a wet floor sign in the area and used that as evidence to support the claim that the floor was wet and not properly dried and filed for $300,000 dollars in damages. Using DTiQ’s 360iQ system, the McDonald’s legal team was able to do a deep dive and found the video from a different camera angle which showed the napkin falling off the tray, and her fall was caused by her slipping on that napkin. The McDonald’s team won, and the claim was thrown out, covering their own attorney costs.

Loss Prevention Techniques

With restaurant industry sales down significantly from pre-pandemic levels, loss prevention is more important than ever. Simple steps can make a big difference in loss prevention at restaurants:

• Utilize restaurant security cameras: Video monitoring can record videos and help managers improve site security and identify suspicious staff behavior like improper cash handling. You can utilize surveillance cameras both in the dining area and parking lot for video footage.
• Invest in analytics: A restaurant camera system is even more helpful when you have accompanying analytics for your security and POS system. For example, intelligent video can send a real-time alert for a specified event, such as an employee coming onsite after hours or a worker performing inventory.
• Conduct thorough staff training: Some losses, such as undercharging customers or incorrectly applying discounts, are simply unintentional errors. Make sure everyone on your team is properly trained on how to use your point of sale system.

Improve Restaurant Loss Prevention with DTiQ

Learn more about how DTiQ helped has helped quick service restaurants like Dunkin Donuts, Subway, Domino’s Pizza, Wendy’s, and more with our loss prevention case studies.

If you need help to make sure your restaurant loss prevention program is protecting your assets, DTiQ is the answer. We offer an unparalleled combination of intelligent video systems, integrated analytics, and customer support for loss prevention programs.

To learn more about our protecting your assets for the restaurant industry, view our loss prevention solutions and book a demo today.