Chapter 17: Safety and Risk Management
Safety should be a primary concern for you as a business owner. This concern extends to your employees and customers. This chapter discusses things you can and should do to ensure a safe environment for staff and customers.
KITCHEN AND FOOD SAFETY
Ensuring your patrons and staff are not injured on the premises is more than a matter of caring for their well-being — it is an essential part of avoiding a business-threatening lawsuit and lengthy downtime. Labor savings, insurance savings, workers’ compensation reductions, and sick pay savings, not to mention staying out of civil court, all come from putting safety procedures in place — and sticking to them. Here is how to do this:
• Keep equipment in working order. Make sure that equipment, tools, machinery, and substances are in safe condition.
• Talk to your workers about safety in the workplace. Encourage open discussion.
• Hygiene. Maintain safe and hygienic facilities including toilets, eating areas, and first aid.
• Staff training. Offer information, training, and supervision for all workers.
• Involve your staff. Implement processes to inform workers and involve them in decisions that may affect their health and safety at work.
• Safety procedures. Implement processes for identifying hazards and assessing and controlling risks.
• Accident book. Record work-related injuries and illnesses.
• Be observant. Pay attention to safe work. Your business will not only become more competitive, but you can help stop the pain and suffering from workplace injury or fatality.
• Post safety signs. Ensure safety signs, usually available for free from your local Department of Health or Labor or your appliance manufacturers, are posted about your kitchen. These will include details on how to safely lift heavy items, directions on proper signage for slippery floors, and dangerous equipment, as well as rules on who handles jobs like lighting gas pilots, changing light bulbs, and sharpening knives.
Atlantic Publishing offers a 10-poster set of workplace safety posters in both English and Spanish. Communicate important information to your employees by posting these colorful, four-color informative Safety and Human Resource posters throughout your workplace. Each poster is 11” x 17” and is laminated for long-term protection. Topics include: First Aid for Burns, First Aid for Cuts and Wounds, First Aid for Choking, Proper Lifting, Emergency Phone Numbers, Drug-Free Workplace, Fire Extinguisher Use, CPR Guidelines, Falling, and Sexual Harassment. To order visit www.atlantic-pub.com or call 800-814-1132 (Item # WPP-PS, $79.95).
AGENCIES
Below are some agencies that can come to your restaurant and offer various types of safety training.
• Red Cross. The Red Cross offers training in first aid, abdominal thrust, and CPR. They can be contacted through their website: www.redcross.org.
• Fire department. Your local fire department offers training for your employees on how to use fire extinguishers. Fires are more common in restaurants than other businesses, so everyone needs to understand how to operate fire extinguishers. Have fire extinguishers available throughout your restaurant. Place one in any location where fires are likely, especially near ovens and fryers. Your priority is making them accessible in case of an emergency. In addition, train employees how to avoid fires as well as how to handle a fire in case of an emergency. Include an evacuation plan for the staff and customers. All employees need to know your plan and how to help customers if there is a fire. Always call the fire department before using a fire extinguisher.
• OSHA can also provide safety training information. The Occupational Safety and Health Agency (OSHA) is the federal agency that oversees safety in the workplace. Be sure that you are in compliance with their regulations. Details about their requirements for food service establishments and training materials are available at www.osha.gov.
FIRST AID AND SAFETY
A restaurant with poorly trained employees can lead to hazardous conditions, another good reason to thoroughly train your employees. They need to be trained on how to handle first aid safety emergencies.
Have a safety plan in place and train your employees to implement the elements of this plan. Train them, so they can respond in a calm and quick manner. Safety training materials can be found on The Training Network’s website at www.safetytrainingnetwork.com.
You should be sure to have a comprehensive first aid kit in a prominent location in your facility. DayMark’s patented first aid cabinet is stocked with OSHA compliant first aid products for those accidents that typically occur in the food service industry such as burns, cuts, sticks, and common workplace injuries. With the high risk of accidents in the food service industry, it’s always challenging to maintain a first aid program that’s both cost effective and up-to-date on current safety regulations. This process is easy and cost effective with the only first aid program with guaranteed OSHA compliance. For more information call 800-847-0101 or visit www.daymarksafety.com.
FIRE
Contact your local fire department for more information about their regulations and recommendations. You need fire extinguishers, fire alarms, carbon monoxide alarms, and smoke detectors. Place a note on your calendar to replace the batteries in your fire alarms every six months. When you consider fire extinguishers, there are several types, including:
• Dry chemical
• Halon
• Water and carbon dioxide
The type of fire extinguisher depends on the type of fire. The reason fire extinguishers are labeled:
• Class A – Ordinary combustibles
• Class B – Flammable liquids
• Class C – Electrical equipment
Many fire extinguishers are labeled with a graphic image that shows the type of fire. Once you have the fire extinguishers in your restaurant, they must be serviced once a year.
Part of your Fire Safety Plan should include an emergency number by all phones, along with evacuation plans around the kitchen, near the doors, and in the entryway and dining room area. There are interesting statistics and information on the NFPA website at www.nfpa.org.
ACCIDENTS AND SAFETY
Any person or business can have an accident, but you can reduce your risk. These are a few ways to do so:
• Ground your electrical outlets.
• Clean walkways and clear clutter.
• Shovel and salt walks and steps in the winter.
• Provide adequate outdoor lighting.
• Place rails along steps.
• Provide adequate interior lighting.
• Install solid doors.
• Put good locks on windows and doors.
• Have a quality security system installed.
These are only some of the possibilities. Assign someone to be your safety coordinator. She can plan and train employees about your evacuation plans, arrange training with local organizations, and be on the lookout for safety problems and concerns.
KITCHEN SAFETY
The restaurant business has many potential safety hazards. Knives, hot ovens, fryers, slicers, grinders, glass, and wet or greasy floors are only some of the hazards your staff faces every day. Many accidents can be prevented with good training.
HEAT AND BURNS
It is very easy for employees to get burns while they are working. They can be burned on grills, stoves, ovens, hot food and drinks, splatters, slashes, and spills These can be avoided if they are careful. To prevent burns:
• Use thick, dry potholders and stir food with long-handled spoons.
• Use hot water carefully. Wear insulated rubber gloves for hot rinse water. Follow operating instructions, especially with steam equipment. Expel all steam before opening the doors.
• Lift lids and equipment away from yourself.
• Avoid splatters and splashes by not overfilling kettles. Do not let food boil over.
• Oil and water do not mix; ensure food is dry before frying.
• Point pan handles away from walkways, but within reach, to avoid knocking over other pans.
• Do not crowd hot pans. Remove cooked foods from cooking surfaces.
• Let oil cool and use caution when cleaning fryers.
• Wear insulated gloves or mitts when removing hot pans from the oven and be certain no one is in your way.
• Do not wear clothes that drape and could catch on fire.
Kitchen Grips offer a great way to grab hot items safely up to 500˚F. They are heat resistant, water repellent, and stain resistant. Visit their website for more information www.kitchengrips.com, call 800-785-4449, or fax 661-257-8123.
DayMark Safety Systems also offers a complete line of oven mitts and burn protection gloves which offer protection in temperatures up to 900˚F. For more information call 800-847-0101 or visit www.daymarksafety.com.
TIPS FOR A BURN-FREE KITCHEN
Steam, oil and grease, boiling soups, hot grills, and ovens can all result in workplace burn injuries. The Burn Foundation has found that such injuries tend to occur when managers do not enforce safety rules or when workers themselves are careless about safety. The potential for accidents is also greater when workers are worn out, on drugs or alcohol, or are simply taking unnecessary risks. Every restaurant is fast-paced and generally congested, providing all the needed ingredients for a disaster. The following tips can make a big difference in maintaining a burn-free kitchen:
• Mitts. Wear protective gloves or mitts when handling hot pots or cooking with hot deep-frying oil.
• Footwear. Wear non-skid shoes to prevent slipping on wet or greasy tile floors.
• Nip small fires in the bud. Extinguish hot oil/grease fires by sliding a lid over the top of the container.
• Avoid reaching over or across hot surfaces and burners. Use barriers, guards, or enclosures to prevent contact with hot surfaces.
• Equipment instructions. Read and follow directions for proper use of electrical appliances.
• First aid. Keep first-aid kits readily available and make sure at least one person on each shift has first-aid training.
• Keep fire extinguishers accessible and up-to-date.
“AWARE.” The National Restaurant Association’s Educational Foundation offers an educational program called “AWARE: Employee and Customer Safety.” The nine modules offered include sections on ensuring fire safety in the kitchen and preventing burns. The Educational Foundation also offers videos, along with interactive CD-ROMs, that promote workplace safety and focus on how to prevent on-the-job injuries.
CUTS
Another hazard for your workers is cuts, but knives are not the only potential problem. Some equipment has sharp edges. Broken glass is a problem. Opening boxes can be a hazard, too. Other hazards include nails, staples, and the edges of box tops. Take these precautions:
• Use the proper tools to dispose of broken glass. Place broken glass in a separate garbage container.
• Cut rolls of kitchen wrap with the cutter.
• Watch the edges when opening cans. Do not use a knife to open cans or to pry items loose.
• Use a pusher to feed food into a grinder.
• Unplug slicers and grinders when removing food and cleaning.
• Utilize guards when operating grinders and slicers.
• Replace equipment blades when clean. Do not let them sit around.
• When you hire left-handed people, give them additional safety instruction about slicers and similar equipment. The safety features on this equipment are designed for right-handed people.
Some Additional Tips:
• Keep knives sharpened. Dull blades cause more cuts.
• Do not leave knives or blades in the bottom of a sink.
• Carry knives by the handle with the tip away from you.
• Never try to catch a falling knife.
• Cut away from yourself on a cutting board.
• Slice; do not hack.
• Use the proper knives for the project.
• Carefully store and clean knives and equipment.
• Store knives and sharp tools in separate areas.
• Wash glasses separately to prevent them from being broken in the sink.
• Do not stack glasses and cups inside of each other.
• Watch for nails, staples, and sharp edges while unpacking boxes. A good way to prevent cuts is to make sure all employees have proper equipment. DayMark Safety Systems offers a variety of gloves that prevent punctures, cuts and abrasions and are made specifically for food service. Here are some of their options:
• DayMark’s FingerArmor™ Cut Gloves are made with highly cut resistant fabric, and protect food service workers from accidental cuts and pokes by shielding the most vulnerable parts of the hand — the middle finger, index finger, and thumb. Dual sided for superior protection, FingerArmor™ Cut Gloves can be worn under latex, vinyl, nitrile or poly gloves, making them ideal for food preparation. With their flexible fit, FingerArmor™ Cut Gloves give operators full range of motion, significantly reducing slippage. The gloves are machine washable and can be easily sanitized.
• DayMark’s 5 Finger HexArmor/Spectra Combination Cut Gloves help employees feel safer and work faster. The traditional spectra cut glove with the DayMark Personal Safety touch. HexArmor fabric is added to the most often cut areas, the thumb and first finger.
• DayMark’s HexArmor® Oyster Gloves protect operators’ palms from cuts caused by sharp mussel shells and oyster shucking knives. Made with high cut, puncture and abrasion resistant fabric, the HexArmor Oyster Gloves provide superior protection on the palm and thumb crotch without limiting finger movement. The HexArmor Oyster Gloves are machine washable and can be easily sanitized.
• DayMarks’ Restaurant General Purpose Work Gloves offer protection like none other in its class. It fits and feels like a mechanic’s style glove, grips like a gel palm glove and protects like a cut and puncture resistant glove. Provides the highest level of cut protection based on the ISEA hand protection guidelines. Great for us in receiving, inventory rotation, pull thaw/slacking products, freezer/walk-in work, or kitchen organization and heavy restaurant maintenance.
For the complete glove product line or more information call 800-847-0101 or visit www.daymarksafety.com.
ELECTRICAL SHOCK
Many pieces of restaurant equipment are electrical, so shock is a concern. Some tips to prevent electrical shock are:
• Ground electrical equipment.
• Replace worn or frayed electrical cords.
• Ensure employees can reach switches without touching or leaning against metal tables or counters.
• Unplug equipment before cleaning.
• Use electrical equipment with dry hands.
• Know locations of electrical switches and breakers for quick shutdown in an emergency.
STRAINS
Your staff members can strain their arms, legs, or backs by carrying heavy food items or equipment. To prevent strains:
• Place heavy food items and equipment on low shelves.
• Use dollies or carts to move heavy objects.
• Use carts with rollers to move objects around the restaurant.
• Use a cart to carry excessive or heavy objects.
• Ask for help when lifting large or heavy objects.
• Bend from your knees, not with your back, when you lift heavy items.
SLIPPING AND FALLING
Anyone who slips and falls on a floor can be badly hurt. Implement practices and training to help avoid hazards that put workers at risk. Prevention:
• Clean spills immediately.
• Use signs or cones to let people know when floors are wet.
• Wear shoes with no-slip soles.
• Do not stack boxes too high; they can fall and cause people to trip.
• Keep boxes, ladders, step stools, and carts away from walkways.
Matrix Engineering offers Grip Rock and Super G floor mats. These are ideal for preventing slip and fall accidents which are a leading cause of injury in workplaces. They are durable, lightweight, and long lasting to make your wet, greasy, and hazardous areas safe for your staff. To contact Matrix call 800-926-0528, fax 772-461-7185, or e-mail griprock@gate.net. You can find more information on their website at www.griprock.com.
Grip Rock slip-resistant safety mat is:
• Slip-resistant in water, grease, and oil
• Extremely tough and durable
• Flexible even in freezing temperatures
• Lightweight and thin (¹⁄8” thick; a 3’ x 10’ is only 25 lbs.)
• No installation needed
• Easy to handle, clean, and maintain
Dur-A-Flex flooring offers a variety of flooring options. Attractive, functional flooring systems are ideal for your facility. They are formed from heat resistant epoxy to withstand temperatures to 250˚F and can be used to resurface floors in dining areas and restrooms. These floors resist penetration of grease or stains. Visit www.dur-a-flex.com/ByIndustry/industries/restaurant.html for the full line of food service facility flooring options or contact Dur-A-Flex at 800-253-3539 or by fax at 860-528-2802.
CHOKING
Restaurant safety means being aware of your customers. How to react:
• Hands on throat and unable to talk or cough equals choking.
• Do not pat a person’s back if he can talk, cough, or breathe.
• Use the Heimlich Maneuver and call for help right away if the person cannot talk, cough, or breathe.
• All employees need to be trained in the Heimlich Maneuver. Post posters with Heimlich Maneuver instructions in employee areas.
EXPOSURE TO HAZARDOUS CHEMICALS
All cleaning chemicals, pesticides, and sanitizers can harm or poison people. Special precautions need to be taken to protect employees. The law requires that some of these steps be taken. OSHA requires a current inventory of all hazardous materials.
Manufacturers must properly label all hazardous chemicals and must supply a Material Safety Data Sheet (MSDS) to be kept on file in your restaurant. The MSDS provides the chemical name, the physical hazards, health hazards, and emergency procedures in case of exposure. This notebook must be up-to-date and handy in the case of emergency. Train all employees to use the MSDS. The following image is a sample MSDS.
Here are some tips to prevent improper exposure to hazardous materials:
• Only trained workers can handle hazardous chemicals.
• Use safety equipment when working with hazardous chemicals.
• Wear nonporous gloves and goggles for sanitizing and cleaning agents.
Even accidental mishandling of food products or neglecting safety can lead to health problems or injury. To be successful you must build and maintain a reputation for offering quality food in a safe environment. If there is a question in your customers’ minds about the quality of your product, you can quickly lose your hard-earned reputation. The sanitation and safety procedures described here are simple to initiate and they must be enforced.
GOOD ERGONOMICS
Ergonomics is “the study and engineering of human physical interaction with spaces and objects during activities.” Any area that requires your workers to repeatedly stretch to reach the supplies they need is poor ergonomically.
Good ergonomics can positively affect your employee’s well-being, safety, productivity, and comfort. Good ergonomics includes well-fitting tables and comfortable chairs to enhance your customers’ experience. Below are tips to help you reorganize your restaurant to work well with people:
• Create mini-workstations with food, utensils, and prep space close.
• Rearrange your storage to minimize bending, lifting, and reaching.
• Provide stools or chairs that support the back and feet when sitting.
• Are your tools and equipment designed for men and women?
• Supply stable, heavy-duty ladders to access shelves and storage units.
• Purchase tools and utensils for left-handed employees.
• Consider how employees, customers, and vendors interact with your facility. Does the current layout make it easier or more difficult for employees to do their jobs or customers to enjoy dining?
• Choose fixtures and equipment that can be moved easily.
THE AIR WE BREATHE
Your restaurant needs healthy air, inside and out. “Poor air” can contribute to employee absenteeism and unhappy customers. Many communities have rigid air and work environment regulations that pertain to proper ventilation, grease, smoke, and wood burning. Any unpleasant odors contribute to “poor” air quality.
FRESH INDOOR AIR
Wood burning ovens, charbroilers, and fryers can create unhealthy or unpleasant air conditions. Flour can also be a concern. Bring in enough outdoor air to supply sufficient indoor air quality, by properly filtering, circulating, and redirecting airflow.
These are some ways to improve indoor air quality:
• Smoking and non-smoking areas – Direct airflow away from nonsmoking tables. Ban employee smoking in the kitchen and dining room.
• Install an air cleaner/filtration system that reduces airborne particles and dust.
• Radon, mold, and biological dangers are possible when converting old or vacant buildings.
• Read EPA reports about air quality at www.epa.gov/iaq/pubs/insidest.html.
• Unhealthy emissions from carpet, paint, and cleaning products. Sick Building Syndrome is explained at the National Safety Council site at www.nsc.org/ehc/indoor/sbs.htm.
• Hire an HVAC contractor or engineer with restaurant experience. Hire contractors to install new systems or to maintain existing systems.
OUTDOOR AIR QUALITY
Ovens, fryers, and other cooking equipment emit particulates, gases, grease, and odors that are regulated. Local and state standards vary greatly. The Federal Air Quality Standards may supersede these. You must pay close attention to the regulations because the penalties can be severe. Here are suggestions to meet emission regulations:
• Hire an industrial air-cleaning firm to install emission-control systems to handle grease, smoke, CO2, and odors.
• Inspect and repair exterior vents, hoods, and intake ducts. Proper maintenance saves the air and your energy costs.
• Install a catalytic oxidizer that converts gases and smoke to water. Read the article at www.pfonline.com/articles/010203.html.
• Contact your natural gas and electric company and county or state environmental and health departments for air quality information, resources, and financial incentives.
• Hire an air quality consultant to help you comply with more complex emission issues and stringent regulations.
• The Environmental Protection Agency’s website, www.epa.gov, provides information on restaurant-specific regulations.
A safe and healthy restaurant is important to your customers and their families. Your employees appreciate and deserve a safe and healthy work environment. Some of these elements are simple and some are more complicated, but all are needed to provide the atmosphere to support your customers and employees.
OTHER AVOIDABLE KITCHEN HAZARDS
However busy you are, you simply cannot afford to ignore the following danger zones:
• Hot oil. Transporting hot waste oil from the fryer is very dangerous. Serious accidents have occurred as the night crew changes the oil at the end of the shift. They are tired and want to go home and may be rushing. Consider purchasing Shortening Shuttles, www.shortening-shuttle.com, 800-533-5711. These inexpensive devices make hot-oil transfer safe and easy and virtually eliminate the dangers and liability of exposure to hot-oil burns.
• Wet floors. Ensure anyone mopping a floor area puts out ample signage to indicate the floor is wet and may be slippery. This does not mean a single yellow cone; it means enough signage so that a person has to make an effort just to get to the slippery floor. For a complete product line of wet floor signs, or more information call 800-847-0101 or visit www.daymarksafety.com.
• Coolers. Keep any heavy coolers or storage refrigerators located at or above waist level, wherever possible.
• Keep your food supply safe. Make sure your employees are trained in food service sanitation. Check with area community colleges for courses in food safety and sanitation. The National Restaurant Association also offers ServSafe certification courses through Atlantic Publishing at www.atlantic-pub.com.
REDUCING EMPLOYEE THEFT
Sometimes the best way to improve your bottom line does not include making cost reductions — it involves keeping a better eye on money you have already made. Theft reduction is an important area to keep an eye on, as one sticky-fingered employee can cost you big. Internal theft is an area of massive expense in many businesses. To keep employee theft to a minimum, you will need to concentrate on the following areas of your establishment:
• Staff rotation. Try to rotate your employees so that they are not working with the same people constantly, minimizing the opportunities to collude and steal from the business.
• Routine inspections. Using daily inspections makes it much more likely to spot an employee being dishonest or a system that is not working rather than waiting for a catastrophe to happen. Have management conduct regular surprise inspections throughout the facility.
• Watch the bar area. Reduce your bar expenses by keeping a watchful eye and performing spot register checks at unexpected times.
• Are your bartenders or servers over-pouring drinks? Implement portion-control pourers on your liquor bottles. Your pricing is based on a “per shot” basis. If your bartender or waitress is providing a “shot and a half” in every drink, they are in effect giving away one in every three bottles of liquor.
• Are your employees failing to charge for add-on items, such as coffee, tea, and extra sauces?
• Do you monitor employee meals? All employee meals should be paid for at the time of ordering, unless you offer them for free, in which case they should be signed for and noted by a manager.
• If you wanted to serve a meal without ringing it up, how easy would it be? Consider the ability of your servers to get food from the kitchen without recording sales.
REGISTER PRACTICES
Your earnings go through a number of steps before they make it into your checking account. The first of those steps is the journey it makes from the customer to the cash register. It is vital that you have rigorous register procedures in place and that all staff is fully aware of the importance of sticking to the rules. Here are a few essential guidelines:
• Cashiers should never have access to the keys you use to display and print your end-of-day sales reports. Any incident where a cash register is “rung off” should be noted and performed by a manager. A new cash drawer should be used from that point onwards.
• Monitor all voids and over-rings. If an employee makes a lot of “mistakes,” she may be taking cash out of her drawer after a customer has paid and left the premises. The same goes for under-ringing of checks. Always watch and match your checks to your register rolls.
• Ensure all guest checks are numbered and the numbers are kept on file alongside the server’s name. If checks do not match the total rung up on the register, you have hard evidence should you decide to terminate an employee.
• Any guest check voided because of error still needs to be accounted for.
GIVEAWAYS
Many establishments give food and drinks away to customers as part of their promotional expenses. A two-for-one deal or a free drink for every main course is a great incentive to get people through the door, but make sure you are not being ripped off in the process. Here is how:
• Use a separate key. If you occasionally give customers free drinks or meals, either as complimentary gifts or as part of a promotion, use a separate key on your register to ring up those giveaways and ensure a manager knows about every incident, either by signing for it or by receiving a voucher. Doing so tightens control on giveaways, maximizes your profits, and allows you to maintain incentives.
• Monitor coupon usage. Destroy all complimentary meal and discount coupons you receive to ensure that the same vouchers are not being used twice. Handing a used promotional voucher back to friends is a common ploy used by unreliable employees to defraud your establishment.
• Employees often enjoy free or reduced meals while they are working. You still need to account for these expenses in order to keep accurate tabs on your inventory and to be able to forecast your purchasing needs.
• Are your employees consuming too many free drinks at the bar after work? Many restaurants have a “one free drink” after-work policy, which may become a two- or three-drink policy without you realizing it. Consider implementing a rule whereby only management can dispense the free drink.
SECURITY
Inventory and supplies are an internal thief’s “bread and butter” — a steak, a few knives and spoons, a bottle of champagne or two. Everything you own needs to be watched and secured. Safeguard the following vulnerable areas of your establishment:
• Always be sure to lock your bar inventory when the bar is not open for service. It deters employees and wandering customers from engaging in petty theft. It will also allow you to identify exactly when and where any losses occur.
• Make sure you have locks on all of your storage areas. Establish rules as to who can get their hands on the keys. Your local locksmith can help you not only with the locks, but also with more sophisticated measures, such as closed circuit cameras and card swipe systems.
• Lock the office. Limiting access to your office areas will prevent theft of valuables as well as valuable information.
• Kitchen layout. When designing or refitting a kitchen, locate your freezers and walk-in coolers as far from the back door as possible. Making it harder to sneak out high-cost items can only benefit your fight to avoid loss through theft.
• Implement a robbery plan for your employees. If the unthinkable should occur, you want to ensure that both your employees and customers are as safe as possible and that your cash is hard to get. Talk to a security expert and your local law enforcement officials to determine the best plan of action in the event of a robbery.
CORRECT CASH-HANDLING PROCEDURES
The correct handling of money is a skill in itself. It should never be left to chance.
• Leaving the cash register unattended. Unavoidably, there are times when employees have to leave their cash register unattended — a situation that invites dishonesty. Create a system where your staff does not have to leave the drawer unattended or they must log on with a pass code to open the drawer. Not only does it prevent theft, but it also allows you to instill confidence in your staff that any errors (or thefts) by someone else will not be attributed to them.
• Ensure that your cashiers call out the total amount of a transaction and the amount tendered by a customer to reduce confusion. Make certain your cashier does not put any notes into the cash drawer until after the transaction is complete.
• Train employees to count aloud any change they are handing to the customer. Count alouds ensure that the change is counted three times — once when your cashier takes it out of the drawer, once again when it is being handed to the customer, and finally, by the customer while it is being handed to her. Count alouds reduce the incidence of costly mistakes, misunderstandings, and employee theft.
• Night drops. If employees have to make night bank drops, make sure that they are accompanied by another employee.
• Have all guest checks accounted for before an employee leaves. Keeping strict control of the money within your business will significantly lower theft opportunities, not to mention man-hours spent trying to figure out shortages.
REDUCING CUSTOMER FRAUD
Your customers can also be a prime source of loss, especially if your employees are less than careful. Here are some common pitfalls:
• “The letter scam.” The “customer is always right,” yes, but use caution. This scam appears every few years. A letter arrives in the mail or over the fax telling you what a great evening they had at your restaurant. “Food, wine, service; everything was great. We cannot wait to come back.” The zinger: “The only problem was, of course, when the busboy spilled some wine on my jacket, so enclosed is the bill for $30 for the cleaning.”
• Bad checks are a major source of customer theft. Try to avoid accepting checks unless you know the customer well. If you absolutely must take a check, be sure to check the ID of the person signing it.
• Credit cards. When accepting credit cards, always have your employees check the signature on the card against the signature on the receipt. To ensure they do, have them write “verified” on the receipt afterwards.
• Short-changed. Occasionally, a customer will claim to have been given change for a smaller bill than they originally handed over. In this situation, if it is possible to “Z” the register and run a quick cash count to verify the cash drawer contents, then do so. If you are too busy to close a register, get the customer’s name and phone number and tell her you will call her as soon as the drawer has been balanced and forward any overage to her at your own cost. Certainly, you do not want to lose a customer if you can help it, but being an easy target for fraud can do even more damage to your bottom line.
• “Bundle” notes. At various times throughout the night, under the supervision of the cashier involved, have your manager “bundle” any notes that number twelve or more in the cash drawer into bundles of ten. Move them to the safe, replacing them in the drawer with signed requisition slips. Bundling keeps the end-of-the-night count simple. It also keeps large cash amounts out of the place where it is most vulnerable.
• Easy targets. Do your table settings include expensive (or even inexpensive) centerpieces that customers may like to take home? Are these centerpieces easily slipped into a pocket or handbag? Consider using centerpieces that are large enough to be left on the table.
• Walkouts. In order to prevent customer walkouts, after presenting the bill, the server should return to the table promptly for payment. Having your cashier located at the only non-alarmed exit door will not prevent customers from leaving without paying, but it will certainly make such a move more risky for them. If your staff is alert and attentive, your customer walkouts should be cut to a minimum.
KEEPING YOUR OWN HOUSE IN CHECK
It is all well and good to keep an eye on everyone else, but you need to ensure that your own practices are as secure as everyone else’s — put office procedures in place that will limit the chance of theft. The following practical procedures can make a big impact on reducing the operating costs of your restaurant:
• Never make an outgoing check to “cash” and do not accept them either. With a “cash” check, anyone could deposit the check as his own or worse; the receiver of the check could bank it and claim it never arrived. Your check is always your last chance for a receipt. Security of that check is paramount.
• Keep all unused checks locked in a safe.
• Keep tabs on all check number successions. Take immediate action if checks go missing. You always have the option of stopping payment if need be.
• Limit all access to petty cash. Petty cash is the number-one area of office fraud. Put your petty cash under lock and key.
• The person who signs your company checks should also be the person that mails them. Ensuring that your checks find their way to the company for which they are intended; it also makes certain you do not pay any “fake” invoices.
• Double-check. The manager responsible for writing deposit slips, counting money, and marking the deposit entry in your books should always be “seconded” by another person, especially with deposits, to ensure that nothing goes missing between the office and bank.
• Reconcile all bank statements as quickly as possible. If bank reconciliations are delayed and there is a major error in the checkbook, you could bounce checks. Do you need help in learning how to reconcile your bank statement? The following link provides ideas and tips in keeping your financials in order: Quick Books at www.quickbooks.com/support/faqs/qbw2001/122131.html.
ELECTRONIC SECURITY
In the restaurant industry, electronic security is a necessity. Consider the following essentials:
• Back-door security. Have your back door hooked up to a small buzzer so that anytime it is opened, a small noise sounds letting anyone in the kitchen and office know. Using this feature will also keep customers, inspectors, and even the competition from sneaking a peek into your kitchen. Also remember that a wide-open door invites bugs, rodents, and outside noise into your kitchen.
• Utilize an employee login system into your POS wherever possible. Make sure employees know that these numbers are for their own good and that sharing their numbers puts their safety in jeopardy. These systems not only let you keep track of who is opening a register, but also which employees are busiest, fastest, and make the least number of mistakes.
• Install alarms on exit doors marked for “emergency use only” to keep your clientele and employees from walking out when they are not supposed to, as well as keeping outsiders from sneaking into your establishment. For more information on door chimes and alarms, take a look at these online alarm retailers: Chime City at www.chimecity.com or Drive Alert at www.drivealert.com.
• Visible cameras. Security cameras, or at the very least, fake cameras, posted at exit doors and cash areas will keep your staff on their toes — and your customers from getting sneaky.