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.