Restaurant Employees Take Big Bites of Their Companies’ Profits
New England’s small- and medium-sized restaurants (and other businesses) face a persistent internal problem: employee theft. Luckily, there are measures you can take to prevent it.
National statistics of employee-on-employer crime are sobering, according to a Forbes article. The U.S. Chamber of Commerce estimates that 75 percent of employees have stolen from their employers at least once. Companies with 150 employees or less are particularly vulnerable to internal financial or data theft, as well as other similar crimes.
The Chamber also determined that roughly 30 percent of business failures are caused by employee fraud and abuse. The toll of workplace thieving to the United States economy is some $50 billion annually, says a CNBC article (citing a statistic from Statistic Brain).
Cash on Tap in Restaurant Business
Because the bar and restaurant industry is often a cash business with few paper trails — one that relies heavily on people-intensive processes — there is an especially high risk of employee fraud and outright theft. There are many vulnerable points, from servers to wait staff, bartenders to kitchen help, all the way to the back office employees.