The thread of fraud is rampant in the hospitality industry, more so than ever before, especially with the unstoppable advance of technology. We have all heard of hackers and many more taking advantage of ‘back doors’ into the tech operations of any industry. This is the dark side of development and progress. Add to this the fact that theft and pilferage may just generally be a sad reality in your own business. These are just some of the many challenges that restaurant owners face today.

Restaurateurs, of course, wield a certain amount of control in everyday restaurant operations, and the crux of the control system is in the quality of what we call the point of sale (or POS in short) software that is used in restaurant operations management. It is one of the ways in which we can fight misuse of resources and fraud.

‘Access’ is something to be dealt with. I have seen that quite a few restaurants follow an ‘open key’ concept when it comes to using the POS. For example, imagine there has been a new item added to the menu, someone may have ‘forgotten’ — whether intentionally or not — to add this to the POS system. Or in the thick of service, the item cannot be found by the waiting staff. Is open key the answer? No it isn’t. Disable this option completely or bring in stringent access rules on who can use the open key. This is a recipe for disaster and open misuse, and also can result in inaccurate sales data when it comes to the stocktaking control process.

Story continues below
Advertisement

Here’s another issue: voided checks, cancels and punch-in errors. These are varied instances of operational realities which are faced on a regular basis. Though these can seem as though they happened innocently, such practices can really make a dent on operational costs. The report generated at the end of the operations would give a clear indication on how many such incidents occurred and there certainly should be a valid explanation provided by the team concerned. Such instances should not be regular and frequent. If there is a trend, then there is cause for worry, which needs to be addressed.

Also think about reconciliation. Imagine that a team member punches in an additional “0” when it comes to quantity of items, and two salads became 20. If it was a genuine error, then it would be a rare occurrence. However, if this was deliberate, then making an amendment may just not occur. This would lead to the end-of-day report not tallying. It is vital that the restaurant owners are aware of such pilferages in their business. Stringent processes and standard operating procedures, backed with methods of checks and balances, need to be put in place to avoid such occurences which can seem innocent at first sight — but are not.

Training the team is therefore essential. Proper training and refresher courses need to be given to the operational team by the senior management. Any deviation from standard practices should be dealt with strict diligence. The success of any business is in the quality of the team and this needs to be remembered in the training provided — which must focus on the ethics and ethos of the business. It must be made loud and amply clear that there is no place for fraudsters in the organisation.

About the Author: With more than 28 years of hospitality experience globally, Naim Maadad is the founding CEO of Gates Hospitality, which owns and operates hospitality concepts including Ultra Brasserie, The Black Lion Public House & Dining, Bistro des Arts, Reform Social & Grill, Publique and Folly by Nick & Scott. It has ownership of Six Senses Zighy Bay. Contact: Naim@gateshospitality.com