Today we’re bringing you another great guest post. This post is by Doug Fisher, a highly sought after management consultant based in Canada who we’re delighted to showcase on TheBarBlogger.com. You can find out more about Doug at http://www.fhgi.com

Co-Worker Scams To Look Out For Behind The Bar

Bartenders not only steal from their employers and customers, but have also been known to steal from their coworkers as well. Here are the four top ways:

1. Straight theft from the cash till is undetectable until the cash out is completed at the end of the night. If three bartenders are working and one steals $45 from the till prior to cashing out, management will ask all three to make it up. Each will put in $15, leaving the one who took the money $30 ahead.

2. If 20 beers are sold by one bartender without being rung into the register, the beer count will be out at the end of the night. If there are two bartenders on at the time, the cost of the lost beers is split by both bartenders leaving the thief ahead in cash by the value of 10 bottles of beer at the end of the night.

3. Similarly most bartenders do their own closing beverage counts. By miscounting the beer at the end of the night by the amount sold, the next shift bartender will likely be charged for the difference.

4. If more than one cash register is used at the bar, it is possible for the bartender to ring in the sale on the register he is not responsible for while keeping the money.

Money is generally not taken openly and all at once. If you do not see your bartender stuffing money in his pocket here and there, it is not enough to say he is not involved in a scam. For a bartender who knows half of these schemes and any of the 100 not mentioned here, he also knows how to account for the money taken and how to pocket it discretely.

However, it is most common for a bartender to take a lump sum just prior to the end of his shift. Therefore, their accounting process is important.

Bartenders usually keep their extra earnings in one of three places- in the till, in their tip jars, or in their pockets. The latter is extremely risky as people will question the constant flow and handling of personal moneys. If the bartender constantly uses his tip jar for additional moneys, it is not necessary for him to maintain a cash control system. He simply takes the money and places it in his tip jar and keeps the revenue at shift’s end. Additionally, if a customer who pays by credit card is shortchanged (i.e. the bartender charges him for a drink he did not receive), the bartender must record that he has one drink in hand. In order to do this several simple methodologies have evolved.

Stemware racks which are placed over the bar are commonly used to assist in counting drinks in hand.

While the glasses on one side of the bar may be used in any particular order, one row is generally reserved for a count. A white wine glass on this rack may stand for a single shot, a cognac glass represents a double shot, a red wine glass a shooter, et cetera. Sales are recorded in an abacus type fashion where glasses account for specific sales. Other methodologies include the use of stir straws or matches as either drinks sold or dollars owing. For every drink scammed, or every dollar taken, the bartender moves one straw or match book from one jar to another. As the evening’s end approaches, the bartender counts the money owing via his system and in one single move takes the extra cash from the till and places it in his pocket or tip jar. If caught he could say he was simply cashing in some of his tips for larger bills.

Extra funds which go into a tip jar are divided amongst all bartenders so if there is more than one on at a time the bartender who took the extra would want to retrieve it before everyone took their cut.

Additionally if a bartender places his extra earnings in the cash drawer and management, not the bartender, counts the cash, the bartender must have a method by which he can accurately retrieve his additional income without being caught.

Conclusion

There is no excuse for bartenders to have the opportunity to take such extreme advantage of the operator, patron or their fellow workers. The following recommendations should assist in eliminating a number of the above concerns.

* Require all shots are poured with the shot glass placed on the bar.
* Bags, jackets or purses should not be permitted behind the bar.
* A sales chit or bill should accompany each drink sold.
* All kitchen liquor supplies should be requisitioned by the kitchen and then sold to the kitchen for the requisition form.
* Opening floats should be count and verified by management before given to the bartender.
* Constant, random checking of perpetual inventories should be conducted.
* There should be a policy forbidding the sale and consumption of alcohol to staff.
* A manager’s signature should be on all manual voids.
* Management should provide a visible display of the US exchange rate.
* Maintain a bar par stock and an inventory lockup.

Unfortunately, there is not an answer to every scam, and of course as new controls are implemented new scams will be developed. There are presently several methodologies to reduce the scam artist. The most effective however, is to be aware of the different scams that could be happening in your establishment and be on the lookout.

Inform your staff there are controls in place, (even if there are not) and that alone may be your biggest control system. Being aware of all the scams and how they are conducted can be difficult. However, the problems can be combated by making staff aware that managers supervisors are constantly watching and monitoring staff performance and actions.
Ask questions about what they doing and be aware of any actions which may resemble the behavior outlined herein.

I had a great conversation with the legendary Bevinco Partner in Columbus, Ohio, Charles Deibel last week.

He was telling me a number of myths that he hears every day when working with Bar Owners assisting with their inventory control.

It never ceases to amaze him or me just how many different ways, ideas and myths exist around the calculation of selling prices, calculation of profit margins and the identification of theft. These are expensive myths. As much as 20% of profits is being lost because of an incorrectly held belief in a system!

As our conversation deepened we agreed that we had to share these myths, ideas and strategies on a webinar so that everyone could join in and find out for themselves if they are employing some of these tactics in their business and don’t realise it.

What would it mean to you to increase profits by 20%?

What would it mean knowing that you were getting the maximum profit from each drink served and that you could leave your bar in the hands of your managers knowing that you had a system to check their accuracy later?

We’ll cover all of this and more on our Webinar on Wednesday May 26th.

I think some of the Myths we’ve encountered are going to really surprise you.

In any case, we’ll have a solution to each myth on the webinar and you will leave the webinar armed with informaiton to increase your profits!

You will need to register to attend this online presentation which we promise to keep brief and informative!

Reserve your Webinar seat now at:
https://www1.gotomeeting.com/register/718101264

I look forward to welcoming you to our presentation.

Title:           The Top 10 Myths That Cost Bar Owners 20% of Their Profits

Date:          Wednesday, May 26, 2010

Time:         4:00 PM EST

Due to a recent increase in crime in the Crosskeys Tavern in Chillicothe, Ohio, owner Susie Burke has decided to post CCTV footage of the offenders and acts on their Facebook and MySpace pages in the hope of identifying the suspects.

Bar patrons have reposted this footage and and other images to their own social media pages and the bar has reported success in identifying past offenders in the act.

Yet another reason to jump on the Social Media bandwagon. It’s not just for letting people know what you had for breakfast!

Full Story Here

Speaking to a nightclub owner recently who turns over $100,000+ per week in his busy city centre premises I learned that his weekly variance/stock loss is less than $200 at cost.

I know of other businesses taking in $6000 per week that have the same losses. So how does the nightclub owner do it? Its actually quite simple: He systemises his business and has implemented basic procedures to control stock from receipt to eventual sale:

1. Staff are assigned to a specific bar each shift and cannot work in other bars without management direction. This makes the staff members accountable for any stock losses/cash shortages.
2. Each bar (7 in total) is inventoried separately at the end of each night. This takes ten minutes per bar and identifies losses on the spot.
3. The owner has instructed vendors to separate stock deliveries according to the bar they are destined for within the club. This allows for seven individual inventories and isolation of potential problems swiftly.
4. Bottles transferred between bars are recorded on transfer dockets and used as part of the inventory.
5. Staff identified as working in bars with continuing losses are warned, warned again and then dismissed. (there are never more than three staff per bar)

So, the next time you look at your inventory results and wonder how to get them right or if there is indeed any light of the tunnel, remember that if an operation with that kind of turnover can get it right, so can you.

Its just a matter of systemising ALL aspects of your purchasing/sales function:

• Receiving
• Storage
• Issuing
• Transferring
• Lending/Borrowing
• Selling
• Cashing

It can be the difference between a profit margin of 65% instead of 60%. Wouldn’t that be a nice Christmas present?