With the holiday season officially over, many restaurants and hotels have wrapped up one of the busiest times of the year. Industry data shows that holiday sales can account for 20% or more of annual revenue in these two industries.
High volume, lots of foot traffic, extended hours, more cash on hand, plus seasonal staff all create both opportunities and risk. Unfortunately, those risks can be hard to spot when you’re in the weeds with holiday crowds.
Now is the perfect time to look back on the season and identify any weak spots or potential risks so you can be better prepared for the next busy season with hospitality security solutions.
The Hidden Cost of Hospitality Theft
Employee theft remains one of the most significant, and often underestimated, threats to restaurant profitability. According to the National Restaurant Association, internal theft accounts for approximately 75% of inventory shrinkage in the food service industry, costing restaurants an estimated $3 to $6 billion annually.
In an industry where profit margins typically hover between 3% and 5% for full-service restaurants, even small losses can have a big impact. Considering that theft-related losses can represent up to 4% of total restaurant sales, you’re looking at essentially wiping out your profits entirely. This makes restaurant and hospitality businesses some of the top industries that need security systems.
Sad fact: did you know that 1 in 35 employees engaged in some form of workplace theft in 2025, up from 1 in 40 in 2024? And unfortunately, it’s a trend that seems to show no signs of slowing down.
Your busy season amplifies these risks. Quick-service restaurants can lose up to 7% of sales to employee theft during peak periods, when supervisors are stretched thin and oversight gaps become more common. Thankfully, hospitality security solutions can help prevent and monitor your business.
Why Busy Seasons Create Perfect Conditions for Theft
Several factors come together when you’re slammed and they create an environment where theft, both internal and external, can increase:
- Seasonal Staffing Challenges – seasonal influx of new temp workers may be less thoroughly vetted or invested in the company’s success.
- Management Distraction – security oversight can take a backseat when managers are busy and stretched thin.
- Increased Cash Handling – with a greater number of customers means increased transactions and more chances or skimming, under-charging or other forms of theft.
- Extended Operating Hours – longer shifts, longer operating hours can mean potentially more time without managerial supervision.
Common Theft Methods in Restaurants and Hotels
Understanding how theft occurs is the first step toward preventing it. Here are the most common methods criminals use to steal from hospitality businesses:
Cash Register Theft
- Skimming: Taking cash from customers without recording the sale in the POS system
- Under-ringing: Entering a lower price than what the customer pays and pocketing the difference
- Fraudulent refunds: Processing refunds for transactions that never occurred
- Voided sales: Voiding legitimate transactions after collecting payment
Inventory Theft
- Food and alcohol theft: Taking inventory items for personal use or resale
- Supply theft: Walking out with napkins, cutlery, condiments, and cleaning supplies
- Unauthorized comps: Giving free food and drinks to friends without authorization
External Threats
- Dine-and-dash: Customers leaving without paying, more common in crowded conditions
- Break-ins: After-hours burglaries targeting cash, equipment, and alcohol
- Credit card fraud: Use of stolen cards during high-volume periods when verification may be rushed
Building a Comprehensive Security Strategy
Protecting your restaurant or hospitality business during busy seasons requires a multi-layered approach that will pay off long after the crowds die down.
1) Invest in Professional Video Surveillance Systems
Today’s security cameras do more than record footage, they also provide real-time monitoring, analytics, and deterrence. Some even let you view your footage remotely, anytime, anywhere. At Wellington Security Systems, our video technology gives us the ability to manage your hospitality security cameras and systems remotely so that you don’t have to spend time checking software. You won’t even have to call us. We’ll call you! Having the ability to diagnose issues remotely reduces the hospitality security cameras down time and the inconvenience and cost of service calls.
When it comes to where these cameras are installed, strategic hospitality security camera placement should cover:
- All cash register and POS terminal locations
- Kitchen and prep areas where inventory theft occurs
- Back-of-house entrances and loading areas
- Dining rooms and bar areas
- Parking lots and exterior perimeters
- Storage rooms and walk-in coolers
Visible cameras also serve as a powerful deterrent. Employees and potential thieves alike are less likely to take risks when they know they’re being monitored.
2) Implement Access Control Systems
Restricting access to key areas is important in terms of loss prevention in the hospitality industry. Access control systems not only restrict or allow access to specific areas but also provide a recorded log of who was where and when. Plus, using an access card or key fob is a lot easier to issue or reprogram with new hires or staff that leave the company.
An access control system allows you to:
- Limit who can enter cash offices, liquor storage, and inventory areas
- Track exactly who accessed which areas and when
- Instantly revoke access for terminated employees
- Set time-based restrictions for seasonal workers
- Integrate with video surveillance for comprehensive monitoring
Plus, access cards can’t be duplicated like keys can, and they’re easy to reprogram if lost, stolen, or an employee leaves the company.
3) Strengthen Financial Controls
Beyond physical hospitality security measures, implementing financial control policies and procedures helps keep employees honest, and makes it easier to close out cash drawers at the end of the night.
- Conduct random cash drawer audits throughout shifts
- Require manager approval for voids, refunds, and comps
- Use drop safes to minimize cash in registers
- Monitor POS exception reports daily for unusual patterns
- Compare actual inventory against theoretical usage
- Rotate cash-handling duties among multiple trained employees
4) Plan for After-Hours Security
Burglars know when you’re most vulnerable, like after closing time, which is why it’s important to also have a smart intrusion alarm solution along with other hospitality security features like video cameras in visible areas.
Protect your property with:
- Commercial alarm systems with 24/7 professional monitoring
- Motion-activated lighting around all entrances
- Reinforced locks and door hardware
- Visible security signage to deter opportunistic criminals
- Remote video monitoring services
Protect Your Revenue
Whenever it lands, your busy season should be a time of excitement and profit for your business, not a period of anxiety over theft and other security troubles. By investing in a professional restaurant security system, you can focus on what matters most: delivering exceptional experiences for your guests.
Don’t wait until an incident occurs to act. The cost of prevention is always less than the cost of recovery.
Ready to strengthen your restaurant or hospitality security before the next busy holiday season? Contact our team for a free security audit and learn how our commercial security solutions can protect your business year-round.
Wellington Security Systems is a trusted commercial security systems partner serving customers in and around the Twin Cities metro for over 40 years, specializing in burglary systems, access control, surveillance cameras, and fire alarms. For more information or a free security audit for your business, contact us today.