Beware: Loyalty Program Scam

I believe loyalty programs are a must. In fact, they’re about the only coupon activity I recommend. But left unchecked, dishonest managers, servers, bartenders and cashiers can make out like bandits with a loyalty program.

For example, let’s consider the position of a manager working the register during a shift. For every customer who orders and does not have a loyalty program ID, he or she simply enters a friend’s number for all of these transactions. This allows the manager’s friends to profit from rewards they didn’t earn. It costs you money and doesn’t help you build a loyal customer base.

To avoid this from ever happening, first try to make a table visit to as many loyalty members’ tables when you know they have used their ID for that transaction. It will build business and verify they are actual members of your program. Second, audit your loyalty transaction reports nightly, and you will quickly see that a number has been used on multiple transactions in one day.

David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the founder of TheRestaurantExpert.com and the developer of SMART Systems Pro,an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He and a team of experienced and passionate coaches help restaurant owners solve their biggest financial and employee challenges so they can run successful and profitable businesses. Learn more atwww.TheRestaurantExpert.com.