EXHIBIT 101 / THE HANDBOOK
EXHIBIT#56HIGH
Inventory & ProcurementComposite score: 62/100

Food Substitution Fraud

Mid-service, a kitchen runs short of a specified ingredient and quietly plates a cheaper substitute under the same name and price — no disclosure, same bill.

Risk Scores

Frequency70
Financial Loss60
Detection Difficulty70
Prevention Ease60
Composite Score62/100

Perpetrator Roles

Chef / Kitchen

Affected Formats

Fast CasualFine Dine-in

Detection Difficulty

Moderately difficult. Requires consistent audit procedures and data analysis to surface.

HOW IT WORKS
Order entered in POS
KDS modified after entry
Cheaper item prepared
Full price charged
Difference pocketed
Handbook Chapter · F-056

Kitchen Display System Manipulation

Full chapter with identity card, real examples, warning signs, detection and prevention guidance.

Exhibit AI Detection

AI-Powered Detection Design

Track ingredient levels against order pace in real time where possible, so a shortage gets caught before it forces a rushed, undisclosed decision.

Prevention Guidance

Audit Controls

Enhanced audit controls required. Standard procedures are insufficient — implement layered verification.

Technology

Automated POS monitoring, real-time exception reporting, and AI-driven anomaly detection significantly reduce exposure.

Culture & Training

Staff awareness programs, anonymous reporting channels, and clear consequence policies deter opportunistic fraud.

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