Your point-of-sale (POS) system is a great tool for server and cash controls.  The reports are usually designed however, to help with accounting and balancing cash, rather than loss management.  With some extra work, you can find some clues to determine if you might have some loss management "challenges".

1. Server’s Cash To Credit Card Ratio 

A low cash-sale ratio could be a red flag that some cash sales are getting diverted and don't end up in the cash sales amounts at the end of the shift.  Some possible reasons could be:

A bartender is ringing up cash sales after serving or pouring the drinks for multiple orders.  He then attempts to remember who he collected money from and what the money was for.

A server "forgets" to enter items that they do not need to get from the kitchen or bartender.  Sometimes when they "forget" items, cash customers might give them a bigger tip.

Whenever a low cash ratio is spotted, be on the lookout for cash sales that never reach the till.

2. Ratio of Server-prepared items to prepared items

In many restaurants, the server gets his own salads, soft drinks, or desserts, so that a preparation ticket does not need to be prepared.  In a table-service restaurant, a server now has the ability to add a few extras, hoping that their generosity might result in a larger tip.  In a quick-serve concept, the server could pocket the money received for these items after deleting them from the check.

Low sales of items that don't need a preparation ticket can be a sign that not all items are being entered into the POS system, or that they are being deleted/cancelled after receiving the money. 

3. Credit Card Tip Percentage

Unusually high tips can be a sign that customers could be leaving larger tips in payment for special favors.  If most of the servers are showing 15-18% tips and one is showing 22%, either that server gives unusually good service or not all of the sales are showing up in the POS system.

4. The Sequence Of Items On The Checks

Servers who really know how to "work the system" will leave checks open until near the end of their shift.  This allows them to make "adjustments" before closing the checks.  Some of these "adjustments" could be:

• giving duplicate checks to different parties thus collecting twice for the same check

• moving items to a different check, collecting the money, then moving the items back to the original check

5. Ratio Of Table Moves

Moving tables around in the POS system can be an indication that the server could be "hiding the pea under the shell".  When a table or order is changed and moved, the audit trail sometimes can be hard to follow.

6. Ratio Of Table Splits To Total Checks

Increased splitting of tables for split checks can also be an indication of "working the system".  The more clever servers can find ways to cover their tracks.

7. The Average Dollar Amount Of Miscellaneous Or “open food” 

Check the miscellaneous or "open food" sales for servers.  Some servers have figured out clever ways to order food or drinks while charging $0.00 or $.99.  Many POS systems report these sales at the end of the day, but it is easy to miss a few which can quickly add up.

8. Average Number Of Discounts

Coupons, discount programs, and certificates are difficult to control.  Even the best controls can't prevent creative cashiers and     servers faced with temptation.  Some problems with coupons:

• Servers can bring their own coupons in and "redeem" them

• Servers can help themselves to coupons in the building

• Some problems with discount programs:

The server in many cases is the one who decides who is a senior, who works in the same mall, or even who is an employee.  Some servers or cashiers are much more generous with these decisions, especially with their friends.

9. Ratio Of Bottled Beers To Draft Beer

Bottled beers are much easier to control for management; draft beer is almost impossible to control.  A low draft beer ratio could possibly be an indication that not all draft beers are being rung up correctly.  The same goes for wine by the glass versus wine by the bottle.

Brian McMillan is Director of Product Development of In Sight Commander System, Inc., a software development company specializing in restaurants and video surveillance systems.  He can be reached at (714) 940-9800 or http://www.insightcommander.com/