A 15-year-old restaurant with $3 million in sales, and 80 employees, was experiencing profit declines every month—and unable to determine the causes.
With lunch and dinner services and a full bar, plus onsite and offsite catering, the owner was not able to personally monitor employee performance for all distribution channels and transaction points.
Mercantile Systems developed a customized program which combined Integrity Surveying for loss prevention, employee theft monitoring and sales improvement services through our Customer Research surveying.
Employee theft—identified as widespread through our Integrity Surveying and employee monitoring, was reduced by 70% in the first four months through implementation of new operational procedures.
The surveying identified one bartender who was not properly recording sales transactions, a number of servers who were giving away food and beverages, widespread misuse and improper handling of food preparation, and several employees who were pocketing cash.
Additionally, employees were not maintaining standard hours of operation, and were in many cases downselling customers vs. upselling. Based on the data and recommendations we provided, the owner decided to hire a consulting firm to assist with realignment of staff, new hiring and loss prevention procedures and development of sales training programs.
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