7 Steps to Stop Internal Shrink


With as many as 95% of business owners having encountered internal shrink at some point, it is important to take precautions that can reduce the threat of theft and shrinkage at your location.

Here are 7 steps you can take to stop internal shrink in your restaurant:

Define your company policy – Establish a “zero-tolerance” policy that informs your staff that you will not tolerate dishonesty, including theft of time as well as product or cash. Write and distribute a policy for your restaurant that outlines exactly what constitutes stealing.

Keep watch of your POS reports – When your staff knows you are keeping track, they are less likely to be tempted to steal. Run regular audits, and let your staff know you are doing them. Keep track of the cash flow throughout the day and look out for any activities that may indicate theft.

Monitor employee access – Keep track of which employees have what pass codes. Keep recording and processing cash transactions as separate tasks among employees. This makes it harder to present false data that could cover up theft.

Create a positive work environment – Employees working in positive environments have shown to be less likely to engage in fraud or theft. Open communication, rewarding employees, and maintaining fair practices help your employees feel like they are a part of your business. With the knowledge of high costs in the company, and how these affect their own pay, employees are less likely to put up with a coworker they know is stealing.

Always be ready to listen – Make it easy for employees to anonymously report theft, and ensure that reports are kept confidential. If you have to dismiss an employee for theft, make sure that your staff knows what happened and understands the consequences of employee theft.

Properly install security cameras – Make sure your employees know that security cameras help ensure the safety of the business from outsiders as well as deter internal theft. They can also help honest employees if they ever get caught up in a dispute over a shortage in their till or to a customer. When you do install these cameras, make sure they are set up properly. Remember, one camera should always have a clear view of the cash register.

Use a cash management safe – Cash management machines record transactions by individual pass codes. Each code is unique and secure, so employees are held accountable if an incident occurs that is linked to their pass code. These machines also allow you to print cash flow reports and audits at the touch of a button. This makes it easier to keep records and even determine the source of cash shortages.


For more information about how a Cash Management system can deter internal shrink at your location, please contact one of our sales representatives at sales@rslc.net or call 214.845.6800.



Written By: Krysten Demster



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