Too Many Projects Have You Frozen in Your Tracks?

By David Scott Peters

www.therestaurantexpert.com

Take a moment and look at your to-do list. Do you see a list that seems to be growing instead of getting smaller? Do you have more than half your list marked as “A-1 Priority” projects? If you actually got some of those projects completed, would your restaurant run smoother? Would you have happier, better-trained employees? And/or would you make more money?

If you answered “yes” to any of these questions, what the heck are you waiting for?

I’ll tell you what you’re waiting for: A freakin’ miracle! You know the one… it’s where Tinker Bell arrives, lands on your shoulder, sprinkles her pixie dust and, magically, all of your projects and tasks get completed. Right? (At least that’s how I picture my miracle arriving.)

The reality is that as your list of uncompleted tasks keeps growing, your restaurant suffers and your stress level explodes to a point where instead of getting things done, you freeze and grab hold of your daily routine, praying that if you just keep moving the business will be OK. (I want to thank Dan Korem, husband of an Elite Member, for an enlightening late-night discussion where he shared a study that provided the data proving this point.)

Getting things done

The key to getting things done is to delegate!

What does it mean to delegate? According to Merriam Webster, the official definition is, “to entrust to another or to assign responsibility or authority.” In other words, use your business’ resources, people and their time to get your stuff done.

That sounds easy, but how many times have you heard someone tell you to just simply delegate? How many times have you found yourself able to take that advice?

If only it were that easy, right?

Michael Gerber, author of The E-Myth Revisited, talks about how most small business owners make a critical mistake when they delegate. He talks about how they often “delegate through abdication,” and this doesn’t work.

“Delegation through abdication” is where you have a problem, a major project, a critical task that needs to be done and you hand it off to someone else to do without giving them sufficient direction. You simply hope they will fix it, and that they will know exactly what you want done and how to do it successfully. Without providing specifics and expectations, you’ve just set the person to whom you’ve assigned the task on a path to failure. And when they fail, which they inevitably will since they can’t read your mind, you revert back to the mindset, “If I want something done right, I simply have to do it myself.”

How’s that strategy working for you? Remember that to-do list?

The keys to delegating

If you want to delegate successfully, all you have to do is follow these five simple steps:

  • Be specific and clear. Explain what you want accomplished, the steps you want the assigned person to take and then ensure they understand. For example, don’t just say, “I want you to do these recipe costing cards.” Instead, teach the step-by-step process to completing a recipe card — from writing in the recipe to converting the ingredients used from pounds to ounces, etc. — and show them how to complete one. Then watch them complete one and have them explain exactly what you have asked them to do. You need to make sure they get it. Understand when you assign a task to most people, they will answer, “yes,” when you ask them if they understand a task that has been assigned, even if they don’t. NOTE: You can NEVER be too specific!
  • Define success. When you delegate a task or project, you need to let the person you have delegated to know what success looks like. Take the time to let them know why this task is important, what successful completion looks like and why it’s important.

For example, “The task of completing recipe costing cards is imperative to our restaurant’s success. Costs have been rising and we need to see what items need to be dropped, any opportunities where we can raise prices, reduce costs, or reduce portion sizes to recapture the profits we’re losing, without negatively affecting our guests. And these recipe costing cards are the key to doing that and allow us to use the Menu Profit Generator Software to find those opportunities. You’ll have performed this task successfully when, 1) all of the batch and item recipes have been costed out, 2) proper yield tests have been performed and 3) all current ingredients have been converted to unit costs and input into the recipe costing card worksheet.”

That’s clearly defining success.

  • Let it go. If you were specific, clear and took the time to explain what completing the task or project successfully looks like, don’t micromanage! It’s OK to check in from time to time to see how the project is coming along. It’s OK to check progress. It’s OK to spot-check work. But it’s not OK to micromanage. You don’t want to be over shoulders every step of the way. They won’t want to give you their full effort for fear that it’s never good enough. You have to let whomever you delegated to follow his or her own path to completion. They might take an extra step or two to get it done, but that’s how they learn. If you know the quickest path to completion is from point A to point B, and they divert to C, D and E on the way, well, if it doesn’t hurt the company, let them find their way. That’s how you learned the shortest path in the first place. But when they learn from doing, it’s more likely to stick. Please note that if they’re going to do harm to themselves or the business along the way, that’s when it’s time for you to step in.
  • Continue communication. When you check in on progress, this is your opportunity to give that person positive or corrective feedback. Remember, just because you showed them once how to do the task, that doesn’t mean they’ll keep it in memory the next day or a week from then. They have to practice it correctly to do it correctly. In a nutshell, continued communication equals ongoing training, and that pays off in dividends. Just remember to be patient. They’re learning and may not master the task at hand for some time.
  • Recognize and reward. When you follow the steps above, you’re almost guaranteed to not only get the task at hand done, but also start developing someone you can count on. You’ll be able to delegate more and eventually hand over tasks knowing — and trusting — they’ll get done correctly. Reward someone doing things right with a simple thank you, pat on the back, movie tickets, dinner out, money, etc. Show that you appreciate the hard work and keep them interested in doing more.

Doesn’t that all sound so easy? Even I find myself telling people how easy it is to effectively delegate, but the truth is it’s easy to hand over tasks and pray they get done right. It takes real time and commitment to delegate effectively. If you’re tired of feeling overwhelmed, frozen in your tracks or have too many projects on your plate and really want to get things done, follow this recipe for delegation success and start reaping the rewards today!

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.

 

RDS Takes Home Highest Award

RDS Payment Services Award Winning CompanyFor the second year in a row, Retail Data Systems was awarded the highest honor at WorldPay’s Annual Awards Dinner. RDS General Manager Jeff Barrett accepted the 2014 WorldPay Chairman’s Cup at a special presentation at the 755 Club at Turner Field, Home of the Atlanta Braves. This honor is awarded to the #1 Independent Sales Organization (ISO) with the largest volume of card processing transactions with WorldPay. This collaboration spans the restaurants, grocery, retail and convenience store industries.

Barrett had this to say about the award, “This signifies our customers’ validation of the end-to-end solution coupling POS payments with great deployment and support. WorldPay shares our commitment to providing excellent services to clients, and this benchmark could not have been accomplished without their dedication.”

Retail Data Systems appreciates this recognition by WorldPay as a result of this successful partnership.

What Your Restaurant Managers Teach Me

By David Scott Peters

www.therestaurantexpert.com

Over the last decade we have worked with countless restaurant managers. So many have been just incredible, perfectly suited for their important roles in your restaurant.

Below are three of them from the past few years that possess a trait I admire and that exemplifies a lesson we all need to learn.

Change is good. – Jay Rushford, Operations Manager, Uncle Bub’s BBQ, Westmont, IL

Jay is the type of guy that is level and has a positive mental outlook on everything. His challenge was to take a restaurant with incredible sales and match those sales with equally impressive profits. Faced with a team resistant to change, this was not an easy task. Jay never once questioned that change was a good thing. Instead he became what my father used to call a “change agent.” He was the restaurant’s biggest advocate for change, a guy who never jammed it down people’s throats, a guy who took the time to train his people on the systems so that they could understand why change was coming and why it was not only good for the restaurant, but good for them, too.

No challenge is too big. – Chris Ford, General Manager, AJ’s Seafood Grille, Ridgeland, MS

Chris was headed for an advanced degree in physical therapy when he found himself in a restaurant where the managers before him just created chaos and frustration for the owners, employees and customers. But Chris saw this as a challenge, an opportunity to grow and a chance for him to see if he really loved the restaurant biz. Somehow, seeing incredible potential in him, I convinced him to give the job a shot and take the general manager position. Since then, he has never looked back. Not only did he see the challenge and kick its ass, he went on to open a new location and has yet to find a challenge too big. With challenge comes growth.

We are ALL on the same team. – Jamie Steinbrecher, Chef, The Okeechobee Steakhouse, West Palm Beach, FL

Jamie is one of those unusual finds in the industry: a chef who creates incredible dishes and understands the business side. He is a truly talented chef and a confident leader, managing his team with honest communication and patience. One of the things that most impresses me about Jamie is his willingness to include the front-of-house management team. He does not look at the kitchen from an “us vs. them” perspective, but rather as one whole team. One of the greatest examples of this is the relationship he has built with the general manager. Together they move the business in a positive direction on a daily basis.

I consider myself extremely lucky to work with so many incredible managers in the business, so many that I cannot mention them all here. I hope that you draw some inspiration from these incredible people and identify the skill sets you need to possess as a manager to be successful and what you should be looking for in your team as an owner.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.

 

Damages from the misuse of the title “Chef”

By David Scott Peters

www.therestaurantexpert.com

“Sticks and stones may break your bones, but names can never hurt you!” Remember that advice a caring adult gave you when kids were mean to you when you were growing up? I remember it vividly. And the truth of the matter is, I don’t think that statement is true.

I like to say titles for management don’t matter. Meaning, I don’t care what your title is as a manager (manager, general manager, front of house manager, executive chef, chef, kitchen manager, back of house manager, etc.), it’s what you are responsible for and the authority you have to do your job that matters.

However, I will often contradict myself when it comes to certain titles. If you misuse certain titles, I think it hurts our industry. It can degrade hard working professionals who worked very hard to get where they are today and the whole idea just gets under my skin.

I’m not talking about the “manager” who thinks he should be a “general manager.” No, I am talking specifically about the use of the title “chef.”

Dictionary.com defines the term as “the chief cook, especially in a restaurant or hotel, usually responsible for planning menus, ordering foodstuffs, overseeing food preparation and supervising the kitchen staff.”

That’s what I’m talking about! I believe the term/title chef means “manager” when used in a restaurant or hotel setting. I believe that the title/term chef is a combination of those two definitions. That definition might look like this…

Chef [shef]

Noun

The chief cook, especially in a restaurant or hotel, usually responsible for planning menus, ordering foodstuffs, overseeing food preparation, and supervising the kitchen staff, and is a highly skilled professional who is proficient in all aspects of food preparation.

That definition fits best because it’s not just about making pretty food that tastes amazing. It’s also about making money.

So what should you look for in a chef (or a kitchen manager for that matter)? Take a look at this possible job description to give you an idea:

Job Summary:

The chef sets and achieves the highest standards in the overall operation of the restaurant. In particular, a majority of the chef’s time is spent supervising and directing the operations and workforce, making staffing decisions, ensuring customer satisfaction and product quality, managing the restaurant’s financial performance and marketing the restaurant.

Performance Standards:

  • Follows all company polices.
  • Must be available for all special events and caterings.
  • Ensures all sanitation and safety standards are followed by his or her crew as set forth by the company; maintains a score of 90 percent or better on all sanitation and safety audits.
  • Knows and creates all menu items offered at the restaurant upon approval from owners. Provides build sheets and photographs so all staff can accurately answer menu item questions in regard to preparation methods, ingredients, portion sizes, and side items accompanying the dishes. Sets all specifications for substitutions for items on the menu.
  • Creates specials at least one week ahead of time and properly costs and prices each item.
  • Properly maintains all recipe cards, inventories and ideal to real food cost comparisons. Also maintains a level of inventory that turns over four to six times in one month.
  • Builds menu for catering, from passed appetizers to full sit down on-site and off-site events.
  • Follows ordering procedure standards and properly maintains the purchase allotment daily and its projection at least one month ahead of time.
  • Ensures that proper food and beverage controls are in place to maintain an appropriate level of cost of goods.
  • Ensures that proper labor controls are in place to maintain an appropriate staffing level and labor cost percentage.
  • Encourages and develops a cooperative team environment between the front of house staff and the back of house.
  • Leads by example.

Job Requirements:

  • Must be able to read and communicate in English clearly and effectively.
  • Must be able to lift up to 20 pounds repeatedly throughout shift.
  • Must demonstrate enthusiasm and commitment to guest satisfaction.
  • Must be efficient and accurate with money and figures.
  • Must possess manual ability to manipulate register system and handle/serve food.
  • Must have a valid health card or equivalent.

WOW! That’s a whole lot more than just making petty food that tastes amazing.

I think you can see my point. I have all the respect in the world for line cooks. They play a key role in the restaurant’s success. With that respect in mind, I find it an insult to all the hard working chefs in our industry that develop and train people, manage costs and make pretty amazing tasting food, to degrade what they have accomplished by calling anyone who cooks on the line a chef.

Consider my point the next time you declare someone “chef” in your restaurant.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.

Brian Podraza Named President by RDS/DSI

Omaha, NEBrian Podraza HeadshotRetail Data Systems/DSI has named Brian Podraza its new President. Podraza started with NCR Corporation in 1988 and accepted a sales position with RDS Wisconsin in 1991. He moved to the Chicago branch where he was later named General Manager. In 2008, he became the VP of Operations and helped successfully navigate the company through a difficult economy with record-breaking results.

“I am honored to have been chosen by the board to lead RDS into the next exciting era of the Company,” said Brian Podraza. “I’m proud of how focused and energized our people are right now. Going forward we will leverage our unique core strengths to help grow the company to the next level.”

Podraza replaces Bob Seider who is retiring with 35 years in the POS industry. “On behalf of the entire RDS team, we want to thank Bob Seider for his leadership and vision. In his 8 years as President, Bob has transformed our company to its current level of success. He leaves with the company’s best wishes.”

About Retail Data Systems
Retail Data Systems (www.rdspos.com) is the largest provider of Point of Sale hardware and software in North America. Founded in 1950, RDS now operates over 25 offices serving customers across the nation providing complete Point of Sale technology. Our team of over 400 professionals ensures our customers the best 24/7/365 service available. Our list of industry-leading POS hardware and software products provides a variety of solutions for companies large and small.

Media Contact:

Drew Clausen
812-372-2000
dclausen@rdspos.com
rdspos.com

Don’t Let Poor Cash Handling Hurt Your Success – Part 2

By David Scott Peters

www.therestaurantexpert.com

In my last post I addressed some samples of classic cash handling errors we see in restaurants all the time. As a reminder, it is your responsibility to make sure ALL of your money makes it into the bank on a daily basis. You must eliminate poor cash handling procedures, eliminate the majority of ways your cash can be stolen and avoid costly fines through proper systems.

Believe it or not, I have systems for cash controls! Follow these procedures and take your success — along with your cash — to the bank.

ACCOUNTING PROCEDURES

Server Checkout

  1. Make sure all checks are closed.
  2. Count servers cash, run tape (if needed), date, +/-$, server’s name.
  3. Cash must match cash due.
  4. Match credit card slips report with server report. If they do not match, look at each credit card slip against the POS receipts to find the problem.
  5. Staple credit card slips to server report. Put server reports and credit card slips in two separate piles.

Helpful hints:

  • Money should be turned in faced.
  • Credit card slips in descending order.
  • Change should be less than one dollar.
  • You should receive larger bills, not $35 in ones.
  • Servers will always be even or over. If they give you a quarter and they were only required to give 24 cents, you do not give change, you are not a bank. Send them to the bar if they want change.
  • If there are COMPS, look for coupons, signed slips or anything else to confirm them.

Bar Checkout

  1. Make sure all checks are closed.
  2. Count servers cash, run tape (if needed), date, +/-$, server’s name.
  3. Clear and continue tape.
  4. Cash must match cash due.
  5. Start a tape, adding all server reports (cash due), subtracting any paid outs and total.
  6. Clear and continue tape.
  7. Count drawer by compartments.
  8. Count the bar drawer back to $300.00.

When counting the last drawer for the day, purchase all of the loose change you can from the daily deposit bag. The goal is to finish the day with less than one dollar in loose change in the bank deposit.

Helpful hints:

  • Bartenders should face their money before they turn their drawer in.
  • Bartenders should bundle and wrap money:
  • pennies by 50 cents
  • nickels by $2.00
  • dimes by $5.00
  • quarters by $10.00
  • ones by $50.00 – 50 bills
  • fives by $100.00 – 20 bills
  • tens by $500.00 – 50 bills
  • twenties by $1000.00 – 50 bills

Counting the Bar Drawer Back to $300

  1. Look at tape with the drawer total.
  2. Take out change (If tape total is $689.52, take out 52 cents.) Place the change removed on the desk in front of the compartment.
  3. Re-run tape subtracting change you took out. If done correctly the change will equal an even dollar amount ($.00).
  4. Pull all the bills out of the drawer.
  5. Put in three stacks of ones ($150.00). Add 0 to 4 additional ones to have a drawer total to that point to have a 0 or 5 in the ones positions (i.e., change of $13.00, add three stacks and two ones ($152.00) to have a total of $165.00 in the drawer to that point) and add to tape.
  6. Put in $100.00 in fives and additional fives, to get to an even $300.00.
  7. Total tape and rip off.
  8. Date, time, initial and put in drawer.

Counting Deposit

  1. Try to have most of the change equal less than a dollar.
  2. Count $1s and $5s, make bundles.
  3. Count master, replacing bundles for loose money.
  4. Count deposit, change through $100s, run tape.
  5. Add checks.
  6. Re-total.

Master Bank

Master bank should equal $1,100.00

  • $400.00 in fives.
  • $350.00 in ones.
  • $30.00 in quarters.
  • $15.00 in dimes.
  • $4.00 in nickels.
  • $1.00 in pennies.

Run tape, initial and date.

The Master bank should be verified at least twice a day. It should always be verified before you count your daily deposit.

Deposit Slip

  • Fill out the deposit slip amounts, i.e., currency, coins, checks.
  • Fill out the number of checks in the appropriate box.
  • Fill in check numbers.
  • Date with the date of the deposit.
  • Put the deposit slip, tape and cash in a deposit bag. Zip and put it in the safe.

Deposits are taken to the bank the next day and change is purchased to balance the master bank to $1,100.00

NIGHTLY ACCOUNTING CLOSING PROCEDURES

  1. Do all employee, reverse happy hour or any other comps for servers and bar.
  2. Make sure all checks are closed.
  3. Run an open check/table report.
  4. Run a flash revenue report.
  5. Count out all servers and bar.
  6. Run a timekeeping report to verify all staff has punched out. Adjust times if needed.

OPENING ACCOUNTING PROCEDURES

Preparing Daily Envelope

  1. Keep transaction report with the confirmation number in an envelope along with credit card slips, (signed copies).
  2. Include paid outs, entire house report, cash out report, credit card
  3. Confirmation sheet – label with yesterday’s date and day of week
  4. File

It’s your choice

I know that it is ultimately your choice, it’s your cash and it’s your business. But if it were me, I would follow our suggested cash handling systems or your own standard trainable systems and make shortages a disciplinary issue that could ultimately cost people their job.

When you make it a responsibility to handle cash properly and it’s tied to their employment, you create a culture where counting money accurately is not just an expectation, it’s the rule.

And lastly, when you do all of these things and your bank deposit is more than $5 off, you know you have a problem and it could just be with a manager stealing or just not doing their job. Either way, you will have more control of your business and have money in the bank to pay your bills.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.

 

Retail Data Systems Deploys the First Ever End to End Encryption and Tokenization with EMV Ready Devices on the NCR Aloha POS

Press Release

Retail Data Systems deploys the first ever in the world end to end encryption and tokenization with EMV ready devices on the NCR Aloha POS, using First Data Corporation’s security solution TransArmor.

Marietta, GA, September 4, 2014 – Retail Data Systems, the largest integrated POS integrator and reseller in the US who is also recognized as a Diamond Reseller globally for NCR Corporation, successfully deployed in production for the first time ever in the world TransArmor on NCR Aloha POS at RedRossa Napoli Pizza in Clive, IA, a concept owned and operated by WR Restaurant Hospitality, LLC out of Sioux Falls, South Dakota.

The Aloha POS solution is a leader in serving professional restaurant operators with a comprehensive suite of solutions, and integrations to third party providers which protect a customer’s investment.      Jeff Barrett, General Manager of Retail Data Systems Payment Services Division commented, “In this time of hyperbolic announcements regarding credit card data breaches, Retail Data Systems collaborated with NCR Corporation and First Data Corporation to deploy a solution that removes card data from the customer environment while at the same time reducing merchant liability, and further lowering PCI reporting effort requirements while introducing token technology that can increase sales and loyalty.”

Essentially TransArmor introduces the most powerful “end to end” security, utilizing a tamper proof connected terminal encryption device integrated through the Aloha POS, which collaborates with vault decryption technology at First Data, making the data of no use to fraudsters and hackers from the time of swipe, or EMV chip read, through authorization, and token issuance. Since the data is never exposed in the clear, reformatted and scraped from memory, or stored at the merchant, there is nothing to steal. This particularly deters the remote access breach attempts from organized crime groups across the globe.

Brian Podraza, President of Data Systems, Incorporated, the holding company for Retail Data Systems, stated, “Retail Data System’s value is bringing together technology solutions from multiple sources to end up with a compelling, operational, and supportable solution. TransArmor on the Aloha POS is exactly the kind of solution that brings value to our customers.” Paul Van Bockern, CEO of WR Restaurant Hospitality, LLC, commented that, “Our guest experience and comfort at RedRossa Napoli Pizza is of paramount importance. Assuring that their sensitive credit card data is secure means everything and is a natural extension of our hospitality.”

Retail Data Systems is the largest provider of Point Of Sale Hardware and Software, in North America. Founded in 1950, RDS now operates over 25 offices serving customers across the nation providing complete Point Of Sale technology. Our team of over 400 professionals assure our customers of the best 24/7/365 service available. Our list of industry leading POS hardware and software products provide a variety of solutions for companies large and small.

Web site: www.rdspos.com/alohatransarmor
Twitter: @rdspos
Facebook: https://www.facebook.com/pages/Retail-Data-Systems/110961558961606

LinkedIn:   https://www.linkedin.com/company/60695?trk=tyah&trkInfo=tarId%3A1409774417860%2Ctas%3Aretail%20data%20systems%2Cidx%3A1-1-1

News Media Contact

Jeff Barrett
General Manager

Retail Data Systems
phone: 678.279.8038   email: jbarrett@rdspos.com

Free Webinar with One of the Restaurant Industry’s Top Experts

LAST CHANCE TO SIGN UP!

Free webinar with one of the restaurant industry’s top experts

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September 4th 2014 at 2:00 CST.

Menu Engineering for Top Profits

In this session learn how to design a restaurant David Scott Peters TheRestaurantExpert (1)menu that puts money in your pocket.  Always a hot topic — your menu is the single most important tool your restaurant has to make sales. David Scott Peters, founder of TheRestaurantExpert.com and session speaker, will discuss the components of a successful menu and showcase results other restaurant owners have achieved by implementing his tips for success. The session will include sample menus that have been re-engineered for top profits. Attendees will learn:

• The dos and don’ts of successful restaurant menus
• When to use fancy fonts and pictures and when not to
• How to analyze your numbers and use them to your advantage in the menu design process
• The one system you can’t live without if you’re going to successfully engineer your menu

 

Don’t let poor cash handling hurt your success – Part 1

By David Scott Peters

www.therestaurantexpert.com

Each opportunity my team has to consult with you in your restaurant helps to make us better coaches. One of the things we’ve learned is that no matter what the restaurant owner says we need to address first, we have to review cash handling procedures right away. Because if there are poor cash handling procedures in place, no other system we implement will matter.

I don’t care how efficient your restaurant is, if every penny of your sales isn’t deposited in the bank, there won’t be enough money to pay your bills. Cash controls must take top priority.

Here are some samples of classic cash handling errors we see in restaurants all the time:

  1. Change in a glass or a drawer. This is a practice used to simplify the nightly deposit. It is used two different ways. First, it’s a time saver to avoid counting loose change. Second, it is used to make the nightly deposit balance exactly to what the point of sales system says the cash balance should be.
  2. A week’s worth of unsecured checks in unlocked filing cabinet. We often see this when the general manager or the owner is the only one allowed to make a bank run, when there is not enough cash to deposit due to credit card purchases or because the owner or manager is just plain lazy.
  3. A bin with a year’s worth of used non-voided paper gift certificates. While management was doing the right thing making sure all of the gift certificates used were accounted for on a nightly basis, they failed to write the word void on them and then saved them in an unsecured clear bin. Any employee could have stolen a small amount on a daily basis and reused them to keep cash sales.
  4. Customer checks taped to the office wall. Many restaurants cater or hold banquets on premise. This means you will have customers leave a deposit check to guarantee the party will happen. This practice is meant to cover costs if they cancel. The challenge comes when the owner or manager doesn’t deposit the checks and tapes them to the wall, because you don’t know if payment is good. A dishonest employee could steal the checks or use the information to steal your customer’s identity and conduct check fraud.
  5. Credit card numbers recorded in a book. In July 2010 a new law was enacted that makes it illegal to retain customers’ credit card numbers in anything other than a secure online record keeping system that meets the law’s requirements. Failing to follow the law’s requirements can result in fines as much as $5,000 for each credit card number kept.
  6. Blank checks and forged checks to routinely pay for deliveries. It is a common practice that restaurant owners leave blank checks to pay for invoices, or they allow a key employee, who is not authorized to sign checks, to simply forge their signature to pay for invoices. This exposes you to a great deal of liability.

In my next post, I’ll give you some proper accounting procedures that will keep you from making some of these mistakes.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.