Recognizing Restaurant Embezzlement

Braden Perry, a former federal enforcement attorney who is now a regulatory and government investigations attorney with Kennyhertz Perry, discussed identifying the signs of restaurant embezzlement with Restaurant Hospitality, a publication designed for independent restaurateurs.

“In order to identify potential white collar crime, a company must systematically look at each of the areas that most often cause problems and implement practices that are designed to avoid motivating individuals to prey on you,” Perry said.

A key problem area he identified was Accounting.

“Simply monitoring employees and ensuring a system of oversight will lessen the likelihood that a normally compliant employee will be tempted into a crime of opportunity,” Perry said. “Check cash drawers and audit tips regularly, indicating to the staff that management is overseeing accounting, and question any shortages immediately.”

“Internally, food and liquor theft is also problematic,” said Perry. “Run a transparent inventory to ensure employees know you are tracking usage. Beware of employees wearing large coats or clothing out of season and suspicious behavior.”

Finally, practicing vigilance and consistency among your staff is the first step on the road toward a theft-free workplace.

“A company must be consistent. Treat everyone the same,” said Perry. “Don’t allow biases or alliances to shape the way you implement or monitor the fraud-monitoring program. Being non-tolerant of questionable actions can provide the consistency necessary to protect the business.”