Expert Advice on Hospitality Topics

Unveiling Employee Theft in Bars

Posted by Nick Kaoukis on Tue, Feb, 27, 2024 @ 13:02 PM

Discover the hidden ways employees may be stealing from your bar and how to prevent it.

Understanding the impact of employee theft in barsBar theft

Employee theft in bars can have a significant impact on the business, both financially and reputationally. The stolen items or money can result in immediate losses for the bar, affecting its profitability. Additionally, employee theft can damage the trust and loyalty of customers, leading to a decline in patronage. It is crucial for bar owners to understand the negative consequences of employee theft in order to take appropriate measures to prevent it.

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Common methods of employee theft in bars

There are various common methods that employees may use to steal from bars. One method is skimming, where employees take cash directly from the register before it is recorded. Another method is over-pouring, where bartenders pour excessive amounts of alcohol into drinks and pocket the difference. Employees may also engage in undercharging, where they deliberately charge customers less than the actual price of the items. Additionally, theft of inventory such as liquor bottles or food supplies is another common method of employee theft in bars.

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Signs to look out for in detecting employee theft

There are several signs that bar owners can look out for to detect employee theft. One sign is a discrepancy between the amount of cash recorded in the register and the actual cash on hand. If the numbers don't match up, it could be an indication of theft. Another sign is a sudden increase in inventory shrinkage or missing items. Unexplained changes in employee behavior, such as a reluctance to take time off or a sudden change in personal appearance, can also be red flags. It is important to be vigilant and observant to identify potential signs of employee theft.

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Preventative measures to combat employee theft

To combat employee theft in bars, there are several preventative measures that can be implemented. First and foremost, it is important to have a strong hiring process in place, including thorough background checks and reference checks. Implementing a system of checks and balances, such as having multiple employees involved in cash handling and inventory management, can help deter theft. Regular inventory audits and surprise cash register counts can also help identify any discrepancies. Proper training and clear communication of expectations can also play a crucial role in preventing employee theft.

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Legal implications and consequences of employee theft in bars

Employee theft in bars can have serious legal implications and consequences. Depending on the severity of the theft, employees can face criminal charges and potential jail time. Bar owners may also pursue civil litigation to recover damages caused by the theft. In addition to legal consequences, employee theft can result in termination of employment and damage to the employee's professional reputation. It is important for both bar owners and employees to be aware of the potential legal ramifications of employee theft.

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Topics: bar profitability, managing liquor inventory cost, bar theft, bartenders you can trust, Reducing Liquor Costs, managing liquor costs, liquor inventory system, bar inventory app

Myths About Managing a Bar That Could Hurt Your Business

Posted by Nick Kaoukis on Thu, Aug, 02, 2012 @ 16:08 PM
By Douglas Robert Brown
Atlantic Publishing
 

Myth: Bartending School Is Vital for a Bartender

FalseMany of the best bartenders learn most of their useful trade while at work. This is because bartending schools vary widely in quality. Some emphasize the preparation of rarely requested drinks without stressing useful skills such as bar management, customer satisfaction, and customer safety. If you are hiring a bartender, you should consider the school he or she has attended, but testing practical skills will give the best clue of how many useful skills the person has for waiting on your bar. If you are considering attending a bartending school, investigate the school to make sure that you will be taught skills such as organization and techniques of serving. A good bartending school or course will emphasize dealing with customers. Be wary of a bartending school that is more of a "drink mix" school, stressing mixing many types of drinks without teaching anything besides drink preparation. There are many of these sorts of schools out there, which claim that a bartender's greatest asset is knowing how to mix an endless variety of drinks. Learning to mix the latest drink is relatively simple once one looks up the recipe, and most patrons will order the most popular drink of the moment rather than some obscure mix. A bartender with a good grasp of people and basic bartending techniques is usually more useful than the bartender who only knows how to mix hundreds of drinks from memory but has few skills besides. In some cases, an employee with a hospitality degree is better able to handle the bar job than someone who has attended a bartender school.

 

Myth: If You Hire Experienced Employees, There Is No Need to Train Them

 You still need to train your employees to ensure that they understand what you want them to do. In cases where an employee has worked at another establishment for a while, you may actually need to provide additional training to allow the employee to get used to the way you want things done versus how they did things at their previous job.

 

Myth: Hiring Younger Serving Staff Is Best

Many bar managers mistakenly believe that hiring young female servers will help ensure a high customer loyalty. This is based on the belief that middle-aged men are the main patrons of bars, which is no longer the case. When hiring servers or other staff, you should consider experience and skill over age or physical appearance. In most states, hiring based on age or appearance is discriminatory and can lead to lawsuits.

 

Myth: The Customer Is Always Right

Bar managers want the customer to be happy enough to return and satisfied enough to recommend the establishment to others. It is never wise to argue with a customer, and if the difference of opinion is something quite small, it is better to humor the customer in order to avoid making him or her feel embarrassed. On the other hand, if the customer insists that he or she is not intoxicated and can drink more, for example, then they should be refused further drinks.

 

Myth: Security Staff Is Vital in Today's Bar

Security does add a certain peace of mind, but at many establishments, it is still the bartender who acts primarily as the security force of the bar. Where your security comes from depends on your location and bar. If you decide you do not need a separate security staff, however, make sure that the bartender or some other personnel are willing to help customers in case of an incident.

 

Myth: To Run a Successful Bar, Just Serve Great Drinks

While quality drinks are a key to bar success, many people go to bars to spend time with others. If you serve good drinks but offer exceptional atmosphere and service, you are likely to do well. In today's competitive world, great drinks alone are not enough. Bar managers need to have good financial planning and careful advertising and marketing and offer great customer service in order to be a success.

 

Myth: You Can Cut Corners to Increase Profits

Reducing costs or cutting corners (reducing the size of drinks or firing staff) is unlikely to help. Customers expect more from bars than ever before. Offering them less is unlikely to bring you the results you want. If you are just starting out, it may take months to see a profit. If you have been in business for a while, increasing customers and getting more from each customer by encouraging spending and lingering are far better strategies than downsizing in order to make a profit.

 

Myth: You Must Keep Expanding in Order to Make a Profit

Many bar managers think that in order to make a large profit, they need to dabble in everything. For this reason, many bars spend large amounts of money setting up dance floors, live acts, larger establishments, and restaurants. When you are just starting out, though, it is often best to keep things simple. Do not expand randomly, assuming that spending more money will bring in more money. Only expand after careful research and weighing the potential risks and benefits. You do not want to get into debt for a venture that is unlikely to work for your bar.

 

 

This article is an excerpt from the The Professional Bar & Beverage Managers Handbook: How to Open and Operate a Financially Successful Bar, Tavern and Nightclub, authored by Douglas Robert Brown, published by Atlantic Publishing Group. This excerpt has been reprinted with permission of the publisher. To purchase this book go to:

Atlantic Publishing Company
Amazon.com

Topics: Bar staff, bar profitability, NightClub Management, bartenders you can trust, bar business, Bar drinks, Liquor cost, Bar products, drink recipe, liquor products

How to hire bartenders who won’t steal at your bar

Posted by John Cammalleri on Mon, Jun, 27, 2011 @ 12:06 PM

BAR MANAGEMENT
by Bob Johnsonbartender theft

  Over pouring, free drinks for buddies, grabbing an extra few beers or R e d Bulls—Is bartender theft inevitable?  No, says bar management expert Bob Johnson. Here, Johnson offers six ways to ensure that you’ll hire an honest barkeep.
 
My first book about bartender theft, written five years ago, was called “The 45 Ways Bartenders Can Rob You Blind.”  Now it’s up to 51!  Just when you think you’ve uncovered all the ways bartenders steal, they come up with new ways.  A bartender was caught recently at a casino inAtlantic Citywith a hypodermic needle injected into an overhead liquor line from an electronic inventory control system, sucking out the liquor into a six ounce vial which he was going to take out to his bartender buddy at the pool bar.  He was found with three vials in his pocket already.  This is an advanced method of “bringing in your own liquor” (theft technique #14 in my book). Not all bartenders are thieves, but I’ve caught so many bartenders stealing, I’m beginning to wonder.  I am told there is no solution; that, in essence, you’re always going to have bartender theft.  But I disagree. I believe you can keep the theft to an absolute minimum if you simply hire right.  Get the right people on board to begin with and you will have fewer problems with theft.  But it’s a full time job keeping your people honest. 
 
The majority of employee theft is created by owners and managers who know little to nothing about running a bar.  There’s probably no inventory control system in place.  No controls means bartenders now have the “opportunity” to steal unabated.  If bartenders are never held accountable for their performance behind the bar and what they do with each and every drink, and how it is accounted for, then they’re free to do whatever they want whenever they want.  Inventory control should be a daily regimen. It’s the biggest and most important part of a bar manager’s job.  Therefore, if there is no daily accounting, bartenders have nothing to fear.  They can give away beers/ drinks, take the money for a drink and put it in their pocket, etc., because there’s no way for anyone to know for sure what’s going on.I’m going to share my ways of controlling bartender theft.  It’s taken me three or four decades to put all this together.  The methods I use work well for me and it works for the clubs I’m operationally involved with.  It will never be 100 percent, but I’m pretty close to it!  Controlling bartender theft starts with the hiring process.

Topics: bar theft, bartenders you can trust