INTEROFFICE MEMORAND UM
TO:
Chester Cadieux (Owner/CEO)
FROM:
Adam Faust
SUBJECT:
Gas RIPS and In-Store Theft
DATE:
3/9/2016
CC:
F. Allen
Because of QuikTrip’s continued loss of profit due to gas theft and the theft of in-store
merchandise, specifically at store number 703, the company should begin utilizing video
surveillance in order to have the ability to prosecute the criminals, and also to improve
the safety of its employees.
The Problem
QuikTrip Corporation has continually been the target of gas theft and in-store
merchandise creating a profit loss and an increased safety risk to its employees due to its
lack of video surveillance in and around its stations, and its unwillingness to prosecute
the thieves who have been detrimental to the company’s profit margin.
It is nearly impossible to illustrate the effects that theft has had on all of QT’s 405 stores
across the country so I have decided to focus on one store here in the Atlanta area, store
number 703 located on Beaver Ruin Road. The causes of this loss of profit cannot be
attributed to any one circumstance or element. The fact is that this store is in an area with
low-income housing nearby, its close proximity to the DMV, heavy foot-traffic, and its
numerous exits which provide multiple escape routes to I-85 and other traffic heavy
roads. These circumstances, paired with the nation’s increased gas prices all contribute to
the continual loss of merchandise. This one store has accrued over 760 dollars of stolen
gas, a total of forty gas robberies in just the time period from April 2nd to April 9th.
These results can be noted from the store’s weekly tally of gas loss and in its monthly
P&L report.
QuikTrip claims that its stations “have set and exceeded the security standards for the
industry” (quiktrip.com). The store currently has a well lit parking area and the inside of
the store is well lit also. The store has a raised checkstand for greater visibility of the
store and pumps in order to provide the employees a more beneficial view for preventing
theft. It also has a drop safe and a security alarm that is hidden out of sight. While these
last two items protect the store’s cash, how do these precautions prevent the stealing of
gas or merchandise? As I have previously shown the company’s current precautions and
procedures are not nearly adequate enough to cope with the thievery, let alone attempt to
deter it in any way.
The second entity of the corporation that is affected by the high volume of theft is that of
the safety of the employees. While QT claims on its website that it has implemented
numerous devices to ensure its employees’ safety, devices that were described in the
previous paragraph, the truth is that it depends on its employees to counter the attempts at
pillaging the store and all of its products. According to the QT policy regarding
prevention of shoplifting the employees are told “to watch customers and to stay close to
customers who wander or stall, and to tactfully and firmly ask for either the money or the
merchandise” (QT Policy). This behavior is exactly the kind of behavior that can
potentially lead to an attack on the employee that could cause bodily injury or even
worse. In the case of drive-offs the employees are told to “use the gas microphone system
to make each customer aware someone is watching, mentally note the description of the
car and the customer pumping gas, and ask each customer if they purchased gas” (QT
Policy). These guidelines seem much safer than those suggested for preventing
shoplifting, but they are unrealistic. The company has set such a high standard for its
employees to maintain in regards to preventing the loss of gas that the employees must
inevitably leave the store to be nearer to the suspected drive-off customer. However, as
was seen in a recent accident at the store where one employee was struck by the car and
dragged half-way across the parking lot this practice is indeed highly dangerous.
Obviously, the current measures that the QuikTrip Corporation is taking to prevent theft,
and protect their staff are not nearly adequate.
INTEROFFICE MEMORAND UM
TO:
Chester Cadieux (CEO/Owner)
FROM:
Adam Faust
SUBJECT:
Gas RIPS and In-Store Theft
DATE:
3/9/2016
CC:
F. Allen
The loss of profit due to gas and in-store theft at store number 703 can easily be solved
by one of these three options; installing video surveillance around the gas pumps and in
the store itself, by hiring a security guard to monitor the property, and an elevated
willingness to prosecute the offenders, or possibly a combination of the three.
The Solution
The continual profit loss at the Atlanta based QuikTrip store, and all other store locations
can most effectively be solved by installing video surveillance cameras at the store. The
main reason that the offenders continue to steal the gas and merchandise is because they
know that the few employees working at the store cannot possibly monitor every person
in every area and still perform their job duties effectively and safely. Even if they do
catch a gas thief in the act they have no way of proving it. If the company were to place
video cameras at each gas pump and in strategic locations inside the store the average gas
thief would think twice before stealing the gas or merchandise; and, for those hardened
criminals without a conscience it would provide the company with irrefutable proof to
create a solid case against the offender in a court of law.
According to Stellar Security Solutions the implementation of security cameras at the
store can be done at a rate of about $4,000. The package that I propose to be installed
contains 32 security cameras, and all of the necessary hardware and software to run the
cameras (see appendix). The system can also be accessed anywhere at anytime through
the internet securely with the usage of a password. This 24-7 access would allow the store
manager the ability to monitor the store without having to be present. This price does not
include the actual labor cost because the equipment can be installed by the company’s
own maintenance staff.
The second option is to hire a security guard to monitor the premises. This presence of an
actual policing force would definitely decrease the amount of theft. Many criminals of
this type of crime are less willing to steal while a person is watching them. The security
guard would be a symbol to all future perpetrators that QT is no longer willing to allow
the immoral actions of a few to affect the law abiding patrons that frequent the stores.
The security officer would also provide a living, breathing form of safeness to all
customers who may be concerned with their safety. Security cameras are useful after the
crime has happened, but a security guard is able to prevent the crime from happening.
After all, you can’t run to a camera for help. This proactive stance is the most substantial
reason for hiring a human instead of simply placing cameras around the store.
The specific cost for the hiring of security guards is not a fixed dollar figure. The cost
depends on who will be hired to provide security. QT can create its own security
department which would allow for the company to maintain its own self-sufficiency that
it has created for itself; however, this creation of a new component to the company may
prove to be more costly than contracting the job out to an outside company. Allied
Security Company is one potential company for the job. They have offices all across the
country and are one of the best companies in the field. They would meet with our staff,
and through a collaboration of their expertise and our expressed needs Allied would
quote us an annual rate.
The third option is to take a stand in a court of law. Even if the company installs security
cameras or hires a security guard; what good does it do if the company does not prosecute
the criminals in court? This taking of criminals to court may appear to be too costly at
first, but I believe that after a few are prosecuted it will send a message to all future
offenders that will make them think twice before making the decision to steal from the
company. This hesitation of thought will decrease the amount of lost profit to the store in
the long run.
The final option, and the option that I believe is the most effective is to combine the use
of security cameras or security guards with the willingness to take the offenders to court.
As previously mentioned it does not benefit the company in any way to incorporate the
additional security measures if nothing is done after the criminal is caught in the act.
While all of these solutions may appear to be highly costly to initiate I feel that they are
an investment in the company’s future security as one of the most profitable and
successful gas stations in the country. The implementation of these security measures will
truly place the QuikTrip Corporation as the front-runner for gas station excellence as it
provides safety for its employees and patrons.
S³ Stellar Security Solutions Digital Surveillance Systems
Pricing
All prices are in U.S. dollars and are subject to change without notice.
Shipping and handling charges are extra.
32 Camera Systems Price Model
with recording speeds of:
480 frames per second 4/20/2004 32480
240 frames per second $3,399 32240
At Your Service
• 3 Year Warranty
• 30-Day Money Back Guarantee
• Lifetime Technical Support
• Free Parts and Accessories Replacement
What is the S³ Solution
The S³ solution is a digital audio/video security system. Start recording and
transmitting by plugging-in security cameras and an Internet connection. Users
will have the ability to store clear color recordings to built-in hard drives. Also the
ability to send live audio and video over a network, or over the Internet. Users
may also archive video and audio files using the built-in DVD recorder. Instant
playback allows users to search recordings from the exact minute specified. S³
users can VIEW, LISTEN, SEARCH, and SAVE from any ware in the world!
Features of our Video Server
• View cameras through DSL, Cable, Phone Lines or any IP Network.
• High Speed Recording (30, 60, 120, 240 and 480 fps).
• Multiple camera inputs (4, 8, 16 and 32 camera systems).
• Multi-view and Management Software.
• Adjustable speed and recording resolution (320x240 or 640x480).
• Up to 16 Channels Audio Recording.
• Two-way Audio between DVR and remote computer.
• Web Browser Access with PTZ Control.
• Adjustable compression for recording and transmitting.
• Scheduled or Manual Back-up to CDR, DVD, Network Storage.
• Watermarks and Thumbprints prove authenticity of video images.
• Multi-level password protection for maximum security.
• Hardware Watchdog allows for automatic recovery of DVR.
• Instant Smart Search and Zoom Search.
• Multiple connections to remote locations at one time.
• Expandable storage and mirrored recording options (RAID).
• Monitoring and Management through LAN, Internet or Dialup.
• Solid and reliable Operating System on Windows 2000.
• Quick and easy search by Time, Date, Camera and Event.
• Recording Methods can be programmed on each camera.
• Pan Tilt and Zoom functions works with most major manufacturers.
• Relay Outputs and Sensor Inputs for easy integration.
• Covert - Hide cameras from main display, CCTV and Networks.
• Motion Detection, 10 programmable detection zones for each camera.
• Send alarm messages to pagers, mobile, landline phones and e-mail.
• and much more...
Wireless Network – PDA
Now you can use your PDA! Using a Windows CE based wireless device, will
give you access to your security cameras. Make Security guards more efficient,
they can make their rounds and still keep an eye on everything. Daycare and
education administrators can always know what is happing on their campus.
Internet
From home, work, and business trip or even on vacation, if you can find a phone
line or Internet connection you can view your cameras. You can connect to your
cameras with any type of Internet connection. It do not matter how you get to the
Internet. After your PC connects to the Internet, the remote software will do the
rest. You can use DSL, ISDN, Cable Modem, Dial-up even Satellite and more.
Office Network
Your new system will arrive to you network ready. Your network administrator
can set-up your system as if it was any other PC on the network. This gives you
the ability to use your security system and follow all the security guidelines of
your network. To maintain control over viewers, you can give each user a
password. Also restrict critical cameras from there view.
Standard Hardware and Software
CD Recorder Drive, 160 Gigabyte Serial Hard Drive, 512 Megabyte DDR
Memory, Gigabyte Network Interface, Rack-Mountable Steel Case (w / lockable
doors),
Intel Main Board, Intel Processor, Embedded XP or Windows 2000 Operating
System.
What comes with my Video Server
One DVR system in a rack case, Keyboard, Optical Mouse, Power Cord,
Quick Start Information Card, Manual on CD, Remote Software on CD,
3-year
warranty,
30-Day
Money
Back
Guarantee5
Works Cited
Elliance. Allied Securtiy. 2002. 28 April 2004. <http://www.alliedsecurity.com >
QuikTrip Policy. QuikTrip Corporation. August 2001.
QuikTrip. QuikTrip. February 2003. 17 April 2004. <http://www.qt.com>
QuikTrip. QuikTrip Corporation Gas RIP Report. 9 April 2004.
Stellar Security. Stellar Security Solutions. 2004. 1 May 2004. <http://s3solutions.net>