QSR Restaurant Group Case Study—With Return on Investment (ROI) Model

Background
Based on prior Very Smart Technology, Inc. (VST) case study data, industry data, and preliminary data gathered from the initial corporate test pilot at Restaurant #1141, the Company has calculated a three-year ROI model for this QSR Restaurant Group. According to conservative estimates, the net present value of the benefits to QSR RG of utilizing VST software is $7.1 million over a three-year period. Using a 10% cost of capital, payback for this initiative will be in 0.46 years.

In light of the preliminary data, VST is pleased that QSR RG would like to expand the system in the second quarter of 2008 to additional Corporate locations further analyze the potential savings associated with the use of HACCP Professional II. The purpose of this ROI analysis is to gather additional test data that can be converted to cost savings and operational efficiencies from a single store to global levels.

While the potential tangible monetary benefits are significant in relation to the investment, the intangible benefits potentially outweigh the former significantly. The potential value-added benefits of this initiative include:

High food quality standard compliance, resulting in the reduction in customer complaints or dissatisfaction

Scalable brand equity

Complete “fridge-to-fork” HACCP documentation of food safety practices and corrective actions, which directly contribute to the avoidance of catastrophic events and costs.

The expansion of the VST test to a broader scope of stores and active feedback gained from QSR Restaurant Group operations personnel will help identify Key Performance Indicators and quantify the intangible benefits listed above.

HACCP Professional II is a business automation solution that focuses on automating key processes related to food service operations. The core methodology ensures that key tasks related to HACCP, safety, sanitation, and operations are covered comprehensively. It also ensures that organizational quality standards are set and met.

The methodology is flexible and can be readily expanded to embrace other important elements of foodservice operations to save time and money. By including simple directions and questions related to equipment and facilities, for example, HACCP Professional II can direct employees to do consistent preventive maintenance, ensure measurement devices for food storage areas are calibrated, and turn equipment on and off more consistently to improve energy efficiency. All of the tasks can be tracked automatically to eliminate the use of paper documentation. Employees and managers can estimate how much time is spent for documentation and reporting and translate that directly to cost savings.

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