LP Magazine

JUL-AUG 2019

LP magazine publishes articles for loss prevention, asset protection, and retail professionals covering shrinkage, investigations, shoplifting, internal theft, fraud, technology, best practices, and career development.

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32 JULY–AUGUST 2019 | LOSSPREVENTIONMEDIA.COM LEARNINGS IN THE QUICK-SERVICE RESTAURANT SEGMENT get people sitting around me that are smarter than I am and very diverse in their thinking. I've seen a number of times in our industry where retailers make an easy decision to put an operator to run a loss prevention organization. More often than not, it hasn't worked out so well. It reminds me that an LP executive brings a unique discipline to the table with the understanding of how to put together what the data tells you with how to build a program and pull the levers to make sure that you are driving your shrink down, at the same time impacting your sales in a positive way and keeping people safe. "Loss prevention professionals really are great leaders who add more and more value to their companies. If you look back to the aftermath of 9/11, most of us took on crisis management roles. As the world changed, we had to learn what to do about workplace violence and organized retail crime. Now we're managing programs for active shooter. Some are starting to take on data-security roles and looking at cyber crime. And now risk management. "Today as we move to a total cost of loss strategy, I think it helps us build a better return on investment. I believe most LP practitioners have always taken into consideration what the total cost of loss is, but now there is framing around it that creates a more powerful message to speak to the corporate business leaders." CKE Restaurants Holdings Anne Sullivan, Vice President of Asset Protection and Safety Excerpts from "Operational Standards Support" July–August 2015 "Probably the biggest differences between traditional retail and quick-service restaurant are how loss is audited and controlled and how the company views the return on investment for loss prevention. In the retail world you have quarterly, twice-yearly, or yearly inventories. You get hard numbers back, and you are held accountable to that. But when I switched over to QSR, there wasn't a true metric or standard in place that I could see to really know what the starting point of loss was and what the tier percentage of loss was…." "The other difference was since I came from mall-based retail, I didn't really have much exposure to robberies. I believe I only had four in my career prior to CKE. Now, with QSR it is a big focus based on the fact that the stores are open 24/7, there is easy freeway access, as well as other factors. The safety issues in QSR are far different than in retail, because we deal every day with being open 24 hours a day and the activity that attracts. There are just so many opportunities that the QSR industry is vulnerable to…." "When you review the video after a robbery, probably 70 percent of robberies are triggered by opportunity. The robber comes in, they take a look around and assess the opportunity, they look in the cash drawer when it's opened, and then they rob the store. So taking away as many opportunities as possible is key. "We train our employees to control the cash levels in drawers. We have to be careful about how we transfer our money. We implemented smart safes, which absolutely had a significant impact on robberies and cash control. Another big thing that we implemented is eliminating back-door openings during night time hours. We took our back-door alarms and set them to activate silent alarms between Today as we move to a total cost of loss strategy, I think it helps us build a better return on investment. I believe most LP practitioners have always taken into consideration what the total cost of loss is, but now there is framing around it that creates a more powerful message to speak to the corporate business leaders. With QSR, robbery is a big focus based on the fact that the stores are open 24/7, there is easy freeway access, as well as other factors. The safety issues in QSR are far different than in retail, because we deal every day with being open 24 hours a day and the activity that attracts. There are just so many opportunities that the QSR industry is vulnerable to.

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