Loss Prevention: LP Innovations Serves Effective, Efficient Audit Process

Hard Rock Cafe is one of the premier dining and retail merchandise brands in the world. Throughout their 46 U.S. cafes, the food & beverage business accounts for approximately two-thirds of total sales with retail merchandise sales making up the balance. A Director of Accounting manages the outsourced LP Innovations team.

The Challenge
While evaluating options regarding an effective and efficient cafe audit process after an organizational change, Hard Rock Cafe compared two alternatives -- creating an internal audit team versus partnering with an external loss prevention firm with the required expertise and ‘fit' with Hard Rock's company culture and objectives.

The Solution
In 2003, Hard Rock Cafe contracted with LP Innovations (LPI) to provide the required audit services. "The LPI value proposition is what first drew our attention to the organization," said Dave DiPerna, Director of Accounting, Hard Rock Cafe. "Our analysis showed that we were able to get a professional nationwide audit service at a lower cost than if we added and managed our own audit staff. We also like the objectivity and independence that an external audit company provides."