Most restaurateurs know that theft is a problem in the hospitality industry, but very few know how much is going on in their own establishments. According to the U.S. National Restaurant Association, approximately 4% of all revenue is lost to in-house theft. The latest figures from Statistics Canada, NPD Group and the CRFA, indicate that the average profit margin for Canadian restaurants was only 4.4% of operating revenue! Based on these figures, approximately one-half of your profit is lost to employee theft.
As if that isn’t bad enough, the cost of missing alcohol is only half of the story. Increasingly, restaurants and bars are learning that they have substantial tax liabilities resulting from stolen alcohol. I urge you to learn more about this insidious practice, here. It’s no wonder that 35% of restaurants fail because of employee theft!
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