Pepe Stepensky
Click here to read the previous column in this series, about three different service types.
Editor’s Note: This is the 20th edition of a regular column on www.elrestaurante.com. Pepe Stepensky, a veteran restaurateur and a long-time member of the el Restaurante Advisory Panel, is offering his advice to any el Restaurante reader with a question. When he does not have a specific question to answer, he will write about the steps to opening and running a restaurant. Click here to email him a question.
By Pepe Stepensky
Running a restaurant is one of the toughest businesses out there. Margins are razor-thin, competition is fierce, and every detail—from food quality to customer service—can make or break your reputation. But there’s another challenge that owners often don’t talk about: employee theft.
It’s uncomfortable, even painful, to admit when it happens. After all, we like to think of our team as family. Yet the reality is that in restaurants, where cash and product are constantly moving, temptation is everywhere. And if you’re not careful, losses can pile up quickly.
I’ve learned this the hard way.
The Cashier Scam That Cost Us Thousands
At one of my restaurants, we noticed money disappearing, but couldn’t figure out how. Sales reports didn’t match the cash in the drawer. It wasn’t until we checked the security cameras that we uncovered the scheme.
The same man would come in during the same cashier’s shift—every time. They were a couple, working together. He would hand her a one-dollar bill, and she would slide it under the drawer as if it were a hundred-dollar bill. Then she’d give him change for a hundred. On camera, it looked routine—until we slowed it down. That “one” was never a “hundred.”
It was simple, clever, and devastating. And it had been happening for weeks before we caught it.
Shrimp in the Trash
Another time, a cook found his own way to steal. On his way to take out the garbage, he’d tuck a bag of shrimp inside the trash. Instead of heading straight to the dumpster, he’d stop at his car, unload the shrimp, and come back as if nothing happened.
We only realized what was going on when inventory numbers didn’t make sense. And by then, hundreds of dollars in product had already vanished.
The Many Faces of Restaurant Theft
Sadly, these aren’t isolated incidents. Theft in restaurants comes in many forms:
• Cash register tricks: fake voids, wrong change, or bill-switching scams.
• Food and beverage theft: taking product home, over-pouring drinks for friends, or giving away food.
• Time theft: buddy-punching time clocks or stretching breaks.
• Inventory manipulation: false counts, collusion with vendors, or stock walking out the back door.
Employees know where the blind spots are—and some won’t hesitate to take advantage.
Once we find out that a manger was picking up carne asada at the will-call counter of the supplier and making his own business selling to neighbors and friends.
Protecting Your Business
The good news? You can fight back with systems that make theft harder and accountability stronger.
1. Install Cameras
Cameras don’t just catch thieves—they prevent theft in the first place. When employees know they’re being recorded, they think twice.
2. Tighten Cash Controls
Assign one cashier per drawer. Reconcile every day. Limit who can authorize voids or refunds.
3. Track Inventory
Pay special attention to high-value items like steak, shrimp, or liquor. Use software to compare sales against usage—and do spot checks often.
4. Rotate Duties
If the same person always closes, counts cash, or takes out the trash, patterns emerge. Rotating staff breaks up routines.
5. Build a Culture of Trust
Ironically, the best defense against theft is trust. When employees feel respected, valued, and fairly compensated, they’re less likely to steal.
6. Recognize Honesty
Reward integrity with bonuses or recognition. Show your team that honesty matters as much as performance.
Remember that controls are made to be used. For example, installing cameras isn’t enough -- you need to make random calls to the store with something you’re observing on video so they know you’re watching them.
What to Do When Theft Happens
Discovering theft is emotional. Anger, disappointment, and even shame can cloud your judgment. But how you respond matters just as much as catching it.
• Document everything: video, receipts, and witness statements.
• Follow your policies: if your handbook outlines steps, stick to them.
• Consider law enforcement: for serious theft, filing a police report protects you and sets a precedent.
• Terminate respectfully: fire for cause, but keep it professional.
• Consult an attorney: especially if you’re seeking restitution.
Trust, but Verify
Most restaurant employees are honest, hardworking people who would never dream of stealing. But as owners, we can’t afford to be naïve. Trust is important—but so is verification.
I’ve come to realize that theft prevention is about balance. Protect your business with systems and oversight, but also create a culture where employees don’t feel the need—or the opportunity—to steal.
At the end of the day, your restaurant isn’t just a business. It’s your livelihood, your dream, and often your family’s future. Protect it. Watch the details. And never assume it could “never happen here.” Employees need to understand that is the livelihood of all and theft is personal to all, not just to ownership
Because if there’s one thing I’ve learned, it’s this: in the restaurant business, if there’s an opportunity, someone will eventually take it.