Two Months, One Multi-Million Dollar Problem, & a 24x ROI

The Challenge

In late 2022, after acquiring a major competitor, a leading entertainment and dining company with a nationwide presence identified a significant problem hiding within the financials: missed sales tax charges across multiple locations for the fiscal year. 

The stakes were high:

• Millions would be lost due to the incorrect tax configuration.
• Complex tax regulations varied from state to state, requiring precise calculations.
• With only weeks left in the fiscal year, the company needed to resolve the issue by December 31st to mitigate further loss.

The Solution

To meet the tight deadline, Frogslayer adopted a value-based approach that aligned incentives with results. This structure ensured the solution would be delivered with precision, speed, and accountability to our clients, allowing them to save millions.

What the pricing model looked like:

• Agreed upon scope of work cost if Frogslayer delivered the solution by December 31st.
• Over 80% of FS’s price was put at risk if the project was delayed beyond the deadline. The client would only pay less than 20% of the original scope of work if Frogslayer was unable to deliver the solution on time.

This high-stakes agreement reflected the urgency and financial significance of the problem, aligning the teams around a singular goal: Fix the issue before the clock ran out.

Timeline and Execution

• November 2022: Frogslayer launched the project with an in-depth system assessment.
• Mid-December 2022: The team implemented critical changes in the POS systems, tested new configurations, and ensured compliance across jurisdictions.
• December 31, 2022: The solution was successfully deployed by 5:45 PM on New Year’s Eve, meeting the year-end deadline.

The Roadmap

Frogslayer knew that solving the problem meant more than just patching the system—it required a comprehensive understanding of taxation requirements specific to multiple jurisdictions, POS architecture, and cross-team collaboration. Here’s how the plan came together:

1. Audit and Analysis
   Frogslayer launched the project with a comprehensive audit to identify the exact points in the POS system where taxes were misapplied and mapped out the adjustments needed for compliance in multiple jurisdictions.
2. POS System Reconfiguration
   Frogslayer re-engineered the POS systems, ensuring future sales taxes would be correctly calculated. The fix accounted for state and local regulations, eliminating gaps that caused previous losses.
3. Testing for Accuracy and Compliance
   The reconfigured system was deployed in a sandbox environment, allowing Frogslayer to test it rigorously without disrupting operations. This ensured accurate calculations and full compliance with tax laws across all locations.
4. Deployment and Training
   Frogslayer rolled out the solution seamlessly, providing training to the company’s IT and finance teams to ensure smooth adoption of the new processes.

The Results

With only a few weeks to execute the plan, our client was able to resolve the issue with the help of our team’s work—just hours before the New Year’s Eve countdown.

The Impact was profound: 

• 24x ROI on the Project: With the correct tax configurations in place, the company unlocked significant revenue potential and the ability to save 24x the initial project cost the upcoming fiscal year.
• Full Regulatory Compliance Achieved: The enhanced processes ensured seamless compliance across state and local jurisdictions, giving the company peace of mind and reducing future administrative burdens.
• Operational Efficiency Maximized: By refining internal processes and aligning systems, the company positioned itself to handle future growth more effectively—without impacting guest experience or requiring significant additional resources.

Long-Term Impact

With the correct processes now in place, the company is well-positioned to manage compliance and support future expansion. The recalibration ensures that operations remain scalable as the business grows or acquires new brands.

Frogslayer’s support throughout the process has helped validate key solutions and ensure smooth execution, building a foundation for ongoing collaboration. The success of the value-based pricing model demonstrates the benefit of aligning efforts toward shared goals, offering a framework the company can leverage for future projects.

Conclusion

This project exemplifies how proactive leadership and the right partnerships can transform challenges into opportunities. By taking swift action and leveraging Frogslayer’s expertise, the company resolved a critical financial issue, avoiding the loss of millions within a few weeks time.

The success of the value-based pricing model reflects the alignment of efforts between both teams, ensuring everyone worked toward a common goal with urgency and precision. This collaborative approach not only restored operational confidence but also established a scalable framework to support future growth, whether through new market expansion or acquisitions.

With their systems optimized and processes aligned, the company is now well-positioned to seize new opportunities without compromising guest experience or operational efficiency. And with a trusted partner, they have the support needed to navigate future challenges and continue delivering exceptional guest experiences.