What term describes inventory shrinkage caused by employees stealing food?

The term that describes inventory shrinkage caused by employees stealing food is pilferage. Pilferage refers specifically to the act of stealing small amounts of food or other items, typically by employees within a business. It encompasses minor thefts that usually go unnoticed over time but can accumulate significantly, impacting overall inventory and financial performance.

Understanding this term is vital for food service operations and inventory management because it helps in identifying potential losses and implementing strategies to reduce theft and ensure that proper accountability measures are in place. Other terms, while related to theft or stealing, imply different contexts or degrees of severity; thus, pilferage is the most accurate descriptor for the situation of minor thefts by employees in a food service setting.