By Russ Bubas, President, Data Quest, LTD
A few minutes later, he served another customer, and collected money from him and from me at the same time. Only one drink was recorded, and it looked like my money went into a tip cup. When I called the owner to tell him, he replied, “Impossible! He’s been with us for 25 years. He’s like a member of my family.” I told him we should audit the terminal and take a look at the tip jar. I also advised bringing the bartender into the office to ask why he doesn’t collect from customers every time he serves.
Long story short, he did finally admit to stealing. The owner gave him the benefit of the doubt, offering him the opportunity to make restitution by the next day, then suspending him. The following day, the bartender walked in with a large shopping bag containing more than $7,700 in cash. He’d been using the money to save for retirement. The bartender was terminated, but the owner’s business was saved.
Around 62% of new businesses go out of business in the first year, largely because of unexplained losses. A bartender giving away drinks to generate larger tips has the same effect on the bottom line as if he put the money directly in his pocket. You have to protect yourself and your profits, so here are some tricks to spot warning signs: