Case Study B: Identifying and Addressing Stock Losses in a Village Pub

Overview

• Type of Business: Village Pub

• Staff: 4 full-time and 4 part-time employees

• Turnover: €15,000-€20,000 per week (€60,000-€80,000 per month)

• Initial Losses: €1,200-€1,500 per month (1.5%-1.9% of turnover)

Identifying Problematic Trends and Products

• After 3 months of stocktaking, losses were consistently between €1,200 and €1,500 per month

• Detailed reports revealed trends and problem products, prompting a staff meeting to address the issues

Implementing Solutions to Improve Stock Management

1. Introducing New Systems

   • Implemented systems for tracking waste, complimentary drinks, and staff drinks

2. Managing Stock Loans

   • Created a system to track stock loans between pubs, ensuring accurate stocktake data

Monitoring Changes and Investigating Specific Losses

• Over the next 2 months, some improvements were observed but not enough

• A stocktake was conducted the day after a suspicious employee went on holiday and again the day she returned

• Stock loss was significantly lower while the employee was away (€98.00) compared to after her return (€610)

Addressing Employee-Related Stock Loss

• Although it was difficult to prove the employee's involvement without direct evidence, the owner discussed the stocktake report with her

• The employee was surprised about the stocktaking information and felt uncomfortable

• As a result, the employee handed in her notice, potentially resolving the stock loss issue

In this case study, Stock Watch helped a Village Pub identify and address stock losses through regular stocktakes and implementing new management systems. While it was difficult to prove the involvement of a specific employee, the owner's confrontation and presentation of the stocktake data led to the employee resigning. This demonstrates the value of Stock Watch’s services in identifying problem areas and providing actionable insights for hospitality businesses to improve their stock management and overall profitability.