13.2 Returns / Refunds

13.2 Returns / Refunds

Standard Operating Procedure (SOP)
Version: V2 | Effective Date: October 2025
Review Date: October 2026 | Document Owner: Operations Manager

Purpose

This SOP establishes standardized procedures for processing customer returns and refunds at all Little Coffee Bean Co locations. It ensures compliance with UK consumer rights legislation while maintaining excellent customer service and accurate financial records.

Scope

This procedure applies to all staff members who handle customer transactions and refund requests at Little Coffee Bean Co locations, including baristas, café assistants, and management personnel.

Equipment Required

  • ODOO Till System (POS terminal)
  • Original receipt (when available)
  • Refund authorization form (for refunds over £20)
  • Manager approval access

Procedure

13.2.1 Refund Policy Overview

Little Coffee Bean Co Refund Policy:

  • We are committed to customer satisfaction and will process legitimate refund requests promptly
  • Refunds are issued for incorrect orders, quality issues, or customer dissatisfaction
  • All refunds must be processed through the ODOO till system
  • Refunds over £20 require manager authorization

UK Consumer Rights Act 2015:

  • Goods must be of satisfactory quality, fit for purpose, and as described
  • Customers have rights to refunds for faulty or misdescribed products
  • Digital receipts or transaction records are acceptable proof of purchase

13.2.2 Valid Refund Scenarios

Immediate Refunds (No Manager Approval Required):

  • Incorrect order (wrong drink, wrong size, wrong temperature)
  • Quality issues (drink not to standard, food item stale/damaged)
  • Service failure (excessive wait time, order not prepared)
  • Allergen concerns (customer has allergy, item not suitable)
  • Refund amount under £20

Manager Approval Required:

  • Refunds over £20
  • Refunds without receipt (transaction lookup required)
  • Multiple refund requests from same customer
  • Refunds for items purchased on previous days
  • Unusual or suspicious refund requests

13.2.3 Processing a Refund – Step by Step

Step 1: Customer Request

  1. Listen to the customer’s concern with empathy and professionalism
  2. Ask clarifying questions to understand the issue
  3. Request the original receipt or transaction details
  4. Inspect the item if applicable (quality check)

💡 Customer Service Tip: Always apologize for the inconvenience, even if the issue wasn’t our fault. “I’m sorry to hear that. Let me help you with that right away.”

Step 2: Verify Eligibility

  • Confirm the purchase was made at Little Coffee Bean Co
  • Check the date of purchase (same-day refunds are standard)
  • Verify the refund amount
  • Determine if manager approval is required (over £20 or special circumstances)

Step 3: Manager Authorization (If Required)

  • Contact the duty manager or shift supervisor
  • Explain the refund request and reason
  • Wait for manager approval before proceeding
  • Manager will enter authorization code or process refund directly

Step 4: Process Refund in ODOO System

With Receipt:

  1. Log into the ODOO till system
  2. Select “Refund” or “Returns” from the main menu
  3. Scan the receipt barcode OR manually enter the transaction number
  4. Select the items to be refunded
  5. Confirm the refund amount
  6. Select refund method (original payment method preferred):
    • Cash refund (if paid by cash)
    • Card refund (if paid by card – refund to same card)
  7. Process the refund transaction
  8. Print refund receipt

Without Receipt (Manager Approval Required):

  1. Ask customer for approximate date/time of purchase
  2. Ask for payment method used (cash or card type)
  3. Search transaction history in ODOO system
  4. Locate the original transaction
  5. Obtain manager authorization
  6. Process refund as above

Step 5: Complete the Transaction

  • Provide refund receipt to customer
  • Thank the customer for their patience
  • Offer to replace the item if appropriate
  • Document the refund reason in the system notes

13.2.4 Refund Methods

Original Payment Method Refund Method Processing Time
Cash Cash refund from till Immediate
Debit/Credit Card Refund to original card 3-5 business days
Contactless Card Refund to original card 3-5 business days
Mobile Payment (Apple/Google Pay) Refund to linked card 3-5 business days

⚠️ Important: Always inform customers that card refunds may take 3-5 business days to appear in their account.

13.2.5 Partial Refunds

If only part of an order needs to be refunded:

  1. Select only the specific items to refund in the ODOO system
  2. The system will calculate the partial refund amount
  3. Process as a standard refund
  4. Customer keeps the remaining items

13.2.6 Declined Refund Requests

Refunds may be declined for:

  • Customer changed their mind (after consumption)
  • No proof of purchase and transaction cannot be located
  • Item purchased from another business
  • Fraudulent refund attempts
  • Excessive refund history (abuse of policy)

How to decline professionally:

  1. Explain the reason clearly and politely
  2. Reference company policy or UK consumer law if applicable
  3. Offer alternative solutions (replacement, store credit)
  4. Escalate to manager if customer is dissatisfied

Example Script: “I understand your concern, however, our refund policy requires proof of purchase. I’d be happy to speak with my manager to see if there’s an alternative solution we can offer.”

Quality Checks

Before processing refund:

  • ✓ Verify receipt or transaction details
  • ✓ Confirm refund amount is correct
  • ✓ Check if manager approval is required
  • ✓ Ensure sufficient cash in till for cash refunds

After processing refund:

  • ✓ Refund receipt printed and provided to customer
  • ✓ Refund reason documented in system notes
  • ✓ Manager notified (if applicable)
  • ✓ Customer satisfied with resolution

Safety Notes

  • Fraud Prevention: Be alert for suspicious refund patterns or requests. Report concerns to management immediately.
  • Data Protection: Handle customer payment information with care. Never write down card numbers or PINs.
  • Cash Security: Large cash refunds should be counted discreetly and verified with the customer.

Troubleshooting

Issue Solution
Cannot locate transaction Ask for more details (date, time, items, amount). Search broader date range. Contact manager for assistance.
Card refund fails Check card terminal connection. Retry transaction. If persistent, process as cash refund with manager approval and document.
Customer disputes refund amount Show original receipt and refund calculation. Explain any differences (taxes, discounts). Escalate to manager if unresolved.
Insufficient cash for refund Request cash from safe (follow SOP 13.5). Offer card refund alternative. Notify manager to replenish till float.

Related Documents

  • SOP 13.1 – Till System
  • SOP 13.3 – Paying for Purchases with Cash
  • SOP 13.4 – Shift Cashing Up Form
  • SOP 13.7 – Errors
  • Section 1.3 – Troubleshooting Escalation Protocol
  • Section 17.5 – Complaints Procedure
  • Section 17.8 – Data Protection Policy

Compliance & References

  • Consumer Rights Act 2015: UK legislation governing consumer refund rights
  • Payment Services Regulations 2017: UK regulations for electronic payment refunds
  • Data Protection Act 2018: UK GDPR compliance for customer data handling
  • Company Policy: Financial Management and Accounting Policy (Section 17.16)

Document Control
Version: V2 | Effective: October 2025 | Review: October 2026
Approved by: Operations Manager | Company: Little Coffee Bean Co

This SOP is part of the Little Coffee Bean Co Standard Operating Manual. For questions or clarifications, contact your line manager or the Operations Team.