Family entertainment centers (FECs) are all about creating a place of joy and excitement for families. But even in the midst of flashing lights and happy screams, a serious issue can lurk: employee theft at the redemption counter. This can eat away at your profits and create a climate of distrust.

The good news? There are proactive steps you can take to deter theft and create a more secure environment for your business. Here are some key strategies:

  1. Embrace Technology:
    • Invest in Redemption Software: Ditch the paper tickets and manual counting. Redemption software tracks every transaction, making it much harder for employees to pocket prizes or fudge numbers. Look for software that offers features like:
      • Detailed transaction records: Allows you to monitor employee activity and identify any discrepancies.
      • Inventory management: Tracks prize stock and helps prevent over-redemption.
  1. Promote Transparency and Accountability:
    • Clear Procedures: Develop clear policies and procedures for handling tickets, prizes, and cash transactions. This removes ambiguity and sets expectations for employees.
    • Rotation System: Implement a system where employees rotate between redemption duties and other FEC tasks. This reduces the opportunity for theft by a single employee.
    • Visible Security: Install security cameras at the redemption counter. While not foolproof, their presence serves as a deterrent and allows you to review footage if necessary.
    • Clear Trash Bags: While it may cost a bit more than regular trash bags, using clear trash bags allows for easy visibility of discarded items.
  1. Build a Culture of Trust:
    • Competitive Wages and Benefits: Employees who feel valued and fairly compensated are less likely to steal. Regularly review your compensation package to ensure it's competitive.
    • Open Communication: Create an environment where employees feel comfortable reporting suspicious activity. This could include an anonymous reporting system or a designated manager they can approach.
    • Positive Reinforcement: Recognize and reward employees who consistently demonstrate honesty and integrity.
  1. Minimize Temptation:
    • Secure Prize Storage: Keep high-value prizes locked away and require a supervisor's approval for redemption.
  1. Regular Audits:
    • Surprise Audits: Conduct surprise audits of the redemption counter to ensure everything is in order. This keeps employees on their toes and deters theft.
    • Inventory Checks: Regularly check prize inventory against system records. Discrepancies can be a red flag for potential theft.

What Signs to Look for That You May Have a Problem

While preventative measures are key, it's also important to be aware of signs that might indicate employee theft is happening at your redemption counter. Here are a few red flags to watch out for:

    • Candy Wrappers: Are you finding candy wrappers hidden in locations with low visibility?  That could indicate an employee is consuming prize candies and discarding the wrappers where they won't be seen.
    • Damage Prize Packaging: Ripped or tampered prize packaging could suggest an employee is trying to conceal the fact they redeemed a prize for themselves.
    • Customer Complaints: Take customer complaints seriously and investigate any recurring issues.  This could uncover deceiving staff members. 

By implementing these steps, you can create a stronger defense against employee theft at your redemption counter. Remember, a focus on technology, clear procedures, and a culture of trust will go a long way in protecting your business and keeping the fun fair for everyone who visits your FEC.

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About the Author(s): Clint Novak is the Business Development Manager at A&A Global Industries, a leading supplier of amusement and vending industry products. With over a decade of experience in the amusement industry, Clint is passionate about empowering arcades through innovative branding strategies.