8.1 Internal controls and shrinkage prevention
A lack of internal controls is one of the main reasons restaurants run into financial difficulty. Deviations and shrinkage in the kitchen can stem from errors, waste or outright theft. Research shows that staff who perceive the risk of detection as low are more likely to exploit weaknesses in the system.
To counter this, duties must be segregated. The fundamental rule is that the person who orders the goods must not be the same person who receives them and signs for them. If the same employee handles ordering, receiving and invoicing, ideal conditions for fraud are created (e.g. ordering more than needed and taking part of the delivery home). Regular and unannounced stock counts deter such behaviour.