Quick answer: Restaurant losses come from four main areas: cash and POS abuse (voids, comps, discounts and no-sales); food and inventory theft or waste; back-door and delivery problems; and labor time. Control them with manager approval and daily review of voids and comps, regular inventory counts of high-cost items, a locked and monitored back door, cash procedures with two-person counts, accurate time tracking, and camera coverage of registers, kitchen entry and storage.
1. POS: voids, comps and discounts
- Manager approval for voids after payment, comps and discounts above a set amount.
- Daily reports by employee: voids, comps, discounts, no-sales.
- Watch for patterns: the same server, the same shift, round numbers.
- Camera above the register to match transactions with what happened.
2. Cash handling
- One cashier per drawer.
- Counts at shift change and closing, with two people, on camera.
- Frequent safe drops; low drawer limits.
- Drive-thru windows covered by a camera.
3. Food and inventory
- Count high-cost items (proteins, alcohol, specialty ingredients) daily or weekly.
- Compare usage vs. sales (theoretical vs. actual food cost).
- Portion control: standard recipes, scoops and scales.
- Waste log: record spoiled or dropped food.
- Lock the walk-in and liquor storage after hours.
4. Back door and deliveries
- One receiving door, camera-covered.
- Count deliveries before signing; check weights and quality.
- Trash and grease runs at set times; watch for items leaving with trash.
- Back door locked and alarmed when not in use.
5. Labor time
- Verify clock-ins and clock-outs.
- Approve hours daily.
- Watch for early clock-ins and late clock-outs without work.
6. Camera coverage for restaurants
| View | Purpose |
|---|---|
| Registers and drive-thru | Cash, voids, comps |
| Kitchen entry/exit | Product leaving the kitchen |
| Walk-in and storage | Inventory theft |
| Back door and dumpster | Deliveries, trash-run theft |
| Dining room and entrance | Safety, customer disputes |
| Office/safe | Counts and deposits |
7. Live monitoring
Live remote monitoring confirms openings, closings, cash counts and back-door activity, and logs hygiene and safety issues such as spills or blocked exits, so managers act on the same day.
Monthly restaurant LP review
- Food cost vs. target, by category
- Voids, comps and discounts by employee
- Cash over/short by shift
- Waste log totals
- Labor hours vs. sales
- Incidents and corrective actions
Frequently asked questions
What is the biggest source of restaurant losses?
It varies, but POS abuse (voids, comps, discounts) and food/inventory loss are common leaders. Daily reporting addresses both.
How often should restaurants count inventory?
High-cost items daily or weekly; full counts at least monthly.
Do cameras in the kitchen bother staff?
Explain the purpose openly (safety, hygiene, fairness) and avoid private areas. Most teams accept transparent monitoring.
Key takeaways
- Control POS overrides with approvals and daily reports.
- Count high-cost inventory often and compare usage with sales.
- Secure the back door and verify labor time.
Next step: Learn how Digital EYE monitors restaurant operations live.