The Mershimer Group Blog
The National Restaurant Association recently formed the Loss Prevention Executive Study Group. Click on the link below to receive further information and to join the Loss Prevention Executive Study Group. Our President Mike Mershimer is the Chairman for this group.
Also, click below to join the Loss Prevention listserve Email List. This is a great opportunity to share ideas, ask questions or raise alerts to others in the industry via our own email communication tool.
Article attempts to resolve the ongoing debate over who owns POS data when the Franchisor Polls franchised locations. Mershimer encourages Franchisors to poll all locations, but to do so in a partnering capacity. It should be the goal to gain support from Franchisees, and demonstrate value to them for providing this data.
Although completed in 1999, this is the best information available today regarding theft and other dishonesty in the QSR and Casual Dining industry.
Click on the link below for an excellent story on the effects of large scale shoplifting. It suprises me that even with all the stories and statistics on shoplifting in the media in recent years, many retailers and consumers still consider shoplifting a semi-harmless cost of doing business.
The results of the Hayes International survey below are eye opening. Hayes annual survey includes actual employee admissions from the "Integra" pre-employement survey. Once you click on the link below, click on "Job Applicant Admissions" to read what past behavior actual job candidates admit too.
This two part article by Richard C. Duell is right on the mark. Auditing Franchisee's does not need to be as complex as some would suggest. When it comes to quantifying underreporting damages, the easier and more reasonable the calculation, the more likely you are to get a Franchisee, Jury, or Judge to understand and accept it. The goal should be to achieve a "reasonable estimation of damages". This leaves wiggle room for negotiations, and does away with the multitude of challenges over your complex methodology.
Some great information on Franchise sales underreporting. Beefing up audits does not always mean making them more complex, or adding 5 field auditors. Think systemically. Consider automation of the process, simplifying or otherwise looking for ways to more easily or quickly get to results.
The attached article supports a critical componant of any loss prevention program. Many restaurant and retail chains focus their programs around cameras, access control, loss prevention field staffing, and other physical security methods, paying much less attention on adequate inventory and production controls. Although physical security systems are important, we can't stress enough the need for chains to invest in systems and controls which accurately track inventory and production. Many in the industry struggle with quantifying the extent of damage caused by theft or a fraud. With proper systems and processes in place, you can quickly and accurately determine the amount of loss. The first step in developing this mindset is to conduct regular product inventories, and waste/scrap documentation procedures.
