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Case Study No. 2

Company:   13 location fast-food franchisee
     
Objective:   To automate its inventory and financial reporting system
     
Problem:   Employee theft
     
Solution:  

This successful franchise operation faced a problem common in the food industry — poor inventory and cash-management controls, which sometimes can lead to employee theft.

JRH Consulting Group studied the operation's system-wide financial data. We compared location to location in a disciplined search for anomalies in such items as cost of sales. We recommended all new back-office procedures for handling daily cash receipts, along with a simplified, centralized and secure computer system to give the company tight control of cash and inventory — the keys to profitability in the food-service industry. We helped select and train new accounting staff. We also created a procedures manual documenting all of these practices, greatly enhancing the company's ability to deter theft and monitor all of its financial operations.

     
Payoff:   By strengthening accounting procedures and controls, our solutions enabled the owner to spend one week each month doing what he really loved — traveling.