Case Study A: Reducing Stock Losses in a Town Centre Pub

Overview

• Type of Business: Town Centre Pub

• Staff: 8 full-time and 3 part-time employees

• Turnover: €110,000 per month

• Initial Losses: Approximately €3,000 per month (2.7% of turnover)

Identifying Fraud and Excessive Losses

• Stocktakes showed a consistent trend of fraud, with losses ranging from 2.7% to 3%

• Action was needed to address these significant losses and protect the business's bottom line

Implementing Solutions to Address Stock Losses

Organising a Staff Meeting

• Informed staff about the stock loss issue and the detailed stocktake reports

• Ensured staff understood the gravity of the problem and the need for change

1. Introducing New Procedures

   • Implemented systems to record waste, drip tray waste, complimentary drinks, and staff drinks

   • Instituted regular line checks with staff members, focusing on different products each week

2. Increasing Stocktake Frequency

   • Conducted stocktakes every two weeks for a period of six weeks

   • Maintained regular monitoring to raise staff awareness and reinforce the importance of stock management

Results and Ongoing Success

• Losses significantly reduced over a period of two months

• Achieved the recommended acceptable loss rate of 1.0% of turnover in the following months

• No staff members were sacked as a result of the implemented changes

• The new systems and monthly stocktakes continue to be in place, ensuring ongoing success and improved profitability

By identifying and addressing stock losses, Stock Watch Ireland helped this Town Centre Pub reduce fraud and improve its bottom line. By implementing new procedures and increasing stocktake frequency, the business now operates more efficiently and has achieved a more acceptable loss rate. This case study demonstrates Stock Watch Ireland's commitment to providing tailored stocktaking solutions for the hospitality sector, ensuring long-term success for our clients.