Theft Prevention & Shrink Control

Mike breaks down the essential layers to detect and prevent theft in open micro markets. While theft isn’t fun to manage, it’s non-negotiable for long-term profitability.

Baseline Assumptions & Budgeting for Shrink

Always assume 3–5% shrink from theft and fresh spoilage when starting. Track this separately under a “waste SKU” so it never hides in your COGS numbers.

The top causes? Late-night access, no cameras, and unclear rules. Plan to reduce shrink under 1–2% by layering control systems proactively.

The strategy is simple but powerful: prevent issues before they happen, detect them when they occur, and act decisively once spotted.

Prevent, Detect, Act Framework

Prevention starts with locked-door coolers or cooler café setups that require a card tap to open. Add bold signage for clear customer expectations.

For detection, use your kiosk camera and “abandoned cart” reports. Supplement with overhead Wi-Fi cams (Nest, Arlo) or pro kits like Night Owl or Panoptic.

When issues arise, match camera clips with kiosk logs, then email the site manager. If problems continue, remove items or add locks based on patterns.

Theft Signage, Tech Ladder & Enforcement Workflow

Use signs like: “Smile, you’re on camera,” “Theft = Termination” (for employee sites), and “Please take only what you purchase.” Words reinforce boundaries.

The gear ladder starts with kiosk cams, then Wi-Fi cams, then full NVR kits with cloud and mobile access. Panoptic adds skew-level recognition.

Enforcement steps: flag unusual shrink, pull kiosk logs and video, loop in site managers, and send a friendly warning email. Adjust access, relocate products, or promote near-expiry items to prevent walk-offs.