April 14, 2023
min read

Breaking the Status Quo: Why Embracing Lottery Loss Prevention Technologies is Vital for Convenience Store Chains

Breaking the status quo: Why legacy back office systems and paper processes are costing large convenience store chains time and money

The world is evolving at an unprecedented pace, and businesses must adapt to stay ahead of the curve. In the convenience store industry, one area where technology is revolutionizing operations is lottery loss prevention. With lottery sales accounting for 25-30% of revenue of convenience store sales, effective loss prevention is crucial for large chains.  Despite the numerous benefits, some operators remain skeptical and prefer to stick to legacy systems. This article aims to address common concerns and demonstrate why embracing new technologies in lottery loss prevention can help large convenience store chains thrive.

Why should I invest in a dedicated lottery management system?

One concern operators may have is the cost of investing in dedicated lottery loss prevention software. However, it's important to recognize that specialized software offers a whole new level of visibility and efficiency, streamlining processes and reducing the time spent on manual tasks. The return on investment (ROI) for dedicated lottery loss prevention software is a minimum of 6x compared to a lottery module in another back office solution. Furthermore, when lottery accounting automation is factored in, the ROI can be as high as 8x or 10x.

How Lottery Management Systems can give you your people back

Large chains that have implemented dedicated lottery loss prevention software have experienced impressive results. Theft is discovered within hours rather than weeks or months, and the investigation of incidents takes minutes instead of hours. All shift audits combined take about 5 minutes or less, compared to 35+ minutes with traditional methods. Office accounting becomes automated, reducing all office workload related to lottery management.

I don’t have any losses or they are very small

The average annual loss due to lottery theft or errors for convenience store chains is unknown because of the lack of information, however, there have been cases where a single store loses $20,000, $30,000, or even $100,000 in over a short period.  There are some statistics out there claiming that a store on average loses $6,000 per year in lottery, but this number is on the low end based on LottoShield estimates.  Simply search Google for "employee lottery theft".  By investing in dedicated lottery loss prevention software, large chains can significantly reduce these losses and improve overall efficiency.

Training on lottery loss prevention is time consuming

Trust in managers and employees is important, but the temptation of lottery winnings can be hard for some to resist. Implementing software that integrates multiple data sources removes the human element - and theft risks from the equation, allowing you to train faster, grow more efficiently, and retain employees longer. By eliminating opportunities for dishonesty, technology can help support your employees in their roles and ensure a more secure business environment.

I don’t have the resources for a long implementation process

Lastly, some operators may worry about the time required for implementation and the potential disruption to their current processes. However, modern technology solutions often prioritize quick implementation. When evaluating new technologies, ask about the time required to implement a solution for a business of your size. You might be surprised to find that the process could take as little as 30 days, rather than the 6-12 months you might have expected.

It's time to move beyond the status quo and embrace the potential of new technologies in lottery loss prevention for large convenience store chains. By addressing these common concerns and highlighting the impressive ROI, you can make an informed decision about the future of your business. Don't let outdated processes hold you back – invest in innovative solutions and watch your convenience store chain thrive.