In this installment of “Confessions of a Stock Auditor,” we peel back the layers of the hospitality industry through the eyes of those who keep the numbers in check. In this tale, Steven Willey of Capcon shares a pivotal experience – an unexpected discovery that ultimately steered him towards a career as a stock auditor. Names and places have been changed for legal reasons, but the essence of this story remains a vivid chapter from his early days.
The Unexpected Assignment
Years ago, before I took on the mantle of auditor, I served as an assistant manager for a large pub company. Known for hopping from one pub to another, I was the go-to for covering general managers during holidays – a test to prove I was ready for my own pub. Just when I thought I was headed back to my routine, my area manager threw me a curveball: an assignment at a pub far from home, with no definitive end date to the project.
The Fox and Compass Surprise
I arrived at the Fox and Compass on an autumn evening, surprising the General Manager, Paul, who wasn’t expecting me until later in the week. After a brief mix-up with the dates, Paul agreed to a comprehensive handover before his departure, including a stock count and safe check – standard procedure that was about to reveal anything but standard results.
A Night of Revelations
That night, I immersed myself in the local culture, chatting to patrons while Paul began the nightly close-down routine. As the evening wound down and I declined the responsibility of the pub keys until my official start, nothing seemed amiss. That was until the next morning, when a loud banging at the door and the discovery of the pub keys just inside led to an unexpected encounter with two internal auditors.
The Audit Unfolds
The auditors were there for a full review – cash, stock, and paperwork. It quickly became apparent that this was not your average managerial handover. Over £1,000 was missing from the safe, discrepancies that did not bode well for a smooth start. The stock count revealed further inconsistencies, with significant shortfalls in both food and beverage supplies. It was evident that the outgoing manager had been manipulating stock counts to cover personal consumption and falsify profits.
The Deeper Scam
As we dug deeper, the true extent of the deceit unfolded. Banking slips in the office waste bin bore fake post office stamps – evidence of forged transactions meant to explain delayed or missing deposits. In his final days, the manager had attempted to steal an additional £10,000, hoping to pin the blame on banking issues at the local post office.
Reflections and Lessons Learned
This experience was more than just an audit; it was a crash course in the critical importance of integrity and vigilance in management. Not only did it provide me with unexpected managerial responsibilities, but it also set me on the path to becoming a stock auditor, driven by a desire to uncover the truth and ensure accountability.
Moving Forward
For current and aspiring restaurant owners, this story highlights the profound impact of effective stock management and thorough audits. Tools like Capcon’s Reality Stock software offer cutting-edge solutions for optimising stock management, empowering businesses to maintain control, reduce costs, and streamline operations.
Remember, regular audits and professional training are not just routine procedures; they are safeguards against potential financial discrepancies and are fundamental to sustaining profitability and trust.
Wrapping Up
As we continue this series, stay tuned for more untold cases from the world of stock auditing – each story bringing a lesson, a warning, and an opportunity to learn. Whether you’re a seasoned manager or new to the hospitality industry, understanding the nuances of stock and cash flow management is pivotal to your success.
Contact us for more information about our specialised stock taking services for the liquor, food, leisure, and retail industries. Our tailored solutions are designed to help you optimise efficiency and profitability through expert management and deep, real-time insights.
Disclaimer: Names, locations, and specific details have been altered to ensure confidentiality and protect individual privacy. Any resemblance to actual persons, businesses, or specific events is purely coincidental and unintentional. This narrative is intended for educational and informative purposes to highlight the importance of diligent stock management and auditing practices in the hospitality industry.
