Table Colombia Challenge

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If there is something in which both consumers and business owners agree, it is that the biggest problem in restaurants, bars or pubs, is the long waiting time to access the menu, order, split the bill and pay. For 84% of businesses, that is their biggest problem and for 92% of consumers it is what bothers them most during their stays in these places.

The need to take advantage of time is increasingly imperative, so when consumers want something, they want it ASAP! While businesses constantly seek to increase their sales and customer satisfaction with the same installed capacity and without incurring additional costs in personnel and / or infrastructure, in a nutshell, they need to be more productive and efficient! However, for most of these businesses, it is a fairly difficult objective to achieve when they live with various problems, such as: long waiting times, lack of detailed information on consumer trends and preferences that allow them to promote products more effectively, the installed capacity and number of employees is insufficient during rush hours (high customer traffic), rework to split the checks and high staff costs.

The current technological solutions for the foodservice industry lack the tools to provide a complete solution to these problems and that is where apptaizer comes into play.

See Problem Validation Infographic:            https://drive.google.com/open?id=1Y_RX20y7AyzbtcGq8tGqbR4kOUtly6dH

Apptaizer is a cloud-based solution that revolutionizes the way of serving and delighting customers in restaurants and bars, creating a two-way channel through the use of a web / mobile platform focused on reducing waiting times to access the menu, order, split the bill and pay, taking the experience to a whole new level.

Apptaizer allows full-service businesses (restaurants, bars, pubs, coffee shops) to manage their menu in real time according to their needs, manage tables and orders immediately, split the bill automatically, which translates into a significant reduction of waiting times (from 45% to 70%), reduction of staff movements (from 40% to 50%), greater use of installed capacity, reduction of operational costs and great potential to increase customer turnover and sales, that is, greater productivity, efficiency and profitability of the business.

Through the mobile application, consumers can explore the nearby places, check the menu, and when they arrive at the chosen location, they can synchronize at a table and invite their friends to join, so everyone can order, monitor their account at any moment without long waiting times.

The platform aims to become a direct B2C channel incorporating disruptive technologies such as big data/AI, allowing business owners to promote their products more effectively according to consumer trend statistics and preferences.

See Solution Validation Infographic:      https://drive.google.com/open?id=1GmcRu2L5iJGKXQwIeh7KDXGbXd4iu7NC

See Apptaizer Flow - Product:                https://drive.google.com/open?id=1Q3gYIZaT-PyVY1Vjha_hLP2Bf1KaHdfd

SIZE MARKET:

The potential apptaizer market is huge, global and with stable growth. In 2018, worldwide sales in the foodservice industry were $ 3.1 trillion.

TAM :

#Restaurants x Avg.Price x 12 Months = 10 Millions x $200 x 12 Months = $24 Billions

AnnualSales x TransaccionFee = $3,1 Trillions x 1% = $31 Billions

                                                                                             TOTAL (TAM): $55 Billions

SAM:

#Restaurants x Avg.Price x 12 Months = 10 Millions x $200 x 12 Months = $24 Billions

AnnualSales x TransaccionFee x % Smartphones = $3,1 Trillions x 1% x 63% = $19,5 Billions

                                                                                            TOTAL (SAM): $43,5 Billions

SOM (USA): 

#Restaurants USA x Avg.Price x 12 Months = 1 Millions x $200 x 12 Months = $2,4 Billions

AnnualSales USA x TransaccionFee x % Smartphones = $825 Billions x 1% x 71% = $5,8 Billions

                                                                         TOTAL (SOM)= $8,2 Billions

                                                                   (without including bars and pubs, nor advertising revenue)

For Colombia, the market size is $ 471 million without including bars and pubs, nor advertising revenue.

See Market Size:    https://drive.google.com/open?id=1WDTeLg2LfEPgeJ3auGw9HujCe_dMreDE

MARKET TRENDS & RISKS:

In 2018, the global foodservice industry showed a stable growth of 5.4%.

In the United States, the restaurant industry represents almost 4% of the US GDP. Measuring industry growth by sales, 2016 to 2017 showed growth of approximately 4.3%. In 2018, the growth was 4%. A figure that is better than most industries in the US.

Americans are now spending nearly 48 percent of their food budgets eating out rather than at home.

“The restaurant industry offers consistent growth. For many decades, it would be an anomaly that foodservice didn’t have growth, and there have been only a couple dips over a 40­–50-year history.” (2019). AARONALLEN & ASSOCIATES (GLOBAL RESTAURANTS CONSULTANS)

Other information of interest regarding market trends and opportunities in the USA:

“Foodservice trends differ from country to country, but the two that are consistent across all countries are conscious dining, and the need to include technology as an important part of doing business.”  (2018). THE RESTAURANT INDUSTRY — A GLOBAL PERSPECTIVE. MEDIUM.COM

“Unlike the living room, which remains a primary destination for settling in to watch TV at the end of the day, dining rooms and kitchens across the U.S. are getting a little less use than they used to. That’s because Americans have embraced the experience of eating out, with “away-from-home” spending hitting a major milestone midway through this decade.” (2018). UNDERSTANDING TODAY´S FOOD SHOPPERS. NIELSEN

“As consumers feel better about their finances, they’re eating out more often.

The biggest challenge the industry is facing this year is labor.

Higher wages, due to intense competition for workers, is driving up the cost of labor.

How bad is it? It’s the tightest labor market since the late 1990s. “Going back to World War II, only five other periods have been this tight on labor,” Pawlak said. “It’s a real crisis mode for the foodservice industry and for restaurants in particular.”

“The rising cost of labor can actually (arguably) be a good thing for the industry overall and economies in the longer term. The result will be not only greater emphasis on engineering more efficient unit economic models, labor models, and productivity improvements — these efforts will also be benefited by a wide variety of exciting new tools that have not yet been adapted to or adopted by the foodservice industry. This presents a tremendous opportunity for investors, technologists, and future-looking operators focusing on bold bets to transform adversity into advantage.” (2019) TECHNOMIC.

“Consumers are as busy as ever. They are beginning to expect more from companies and want products and services delivered as quickly and simply as possible. Efficiency-driven lifestyles transcend instant gratification. I Want it Now! consumers seek frictionless experiences that mesh with their lifestyles, allowing them to dedicate more time to their professional or social lives. They increasingly turn to apps that help them organize their lives and are especially intrigued by innovations that help them avoid queues, reduce waiting time, and synchronize their personal information and preferences.” (2019). Top 10 Global Consumer Trends 2019. EUROMONITOR INTERNATIONAL .

In the international market there are currently many technological solutions for the foodservice sector and several of them very successful and recognized (including some unicorns), such as: Opentable, Eatigo, Toast, Touchbistro, Inresto, ifood, Rappi, DineOut, Mr. Noow, etc.

The vast majority of these companies are focused on business administration, reservations or home delivery and only a few (1 or 2) are focused on the experience and needs of consumers during their stays in restaurants, bars, pubs or cafes full service.

The solutions of the most important competitors include the need to acquire additional equipment and in some cases, it is part of their business model (sale of specific equipment and / or payment for number of licenses).

Except for 1 or 2 cases, the solutions focused on reducing waiting times are aimed at fast food businesses (order and pick up), that is, they are not aimed at the full service business segment.

The main competitors in Colombia are: Plazez  and Touchbistro (USA, Mexico and Colombia). Plazes is basically a fast track for fast service businesses (order and pick up) and Touchbistro requires Apple hardware acquisition for proper operation, its business model is based on the number of licenses per device (which must be Apple).

The main competitors globally are: Mr. Noow (Spain), Inresto (India) and Tochbistro

See details about main competitors:      https://drive.google.com/open?id=1zUVJYEKlbvN_iwKSpVjUUyQyeKbkqOgx

See the map of the main competitors:      https://drive.google.com/open?id=1IOyJT-EQo1vHJmR_ASs6LAbDHSYX8lq2

APPTAIZER COMPETITIVE ADVANTAGES:

• Apptaizer is a solution focused on the experience and needs of the consumer with a high impact on the productivity and efficiency of full service businesses, reducing waiting times from 45% to 70% and staff movements between 40% and 50%.

• Because it is a cloud-based platform, it does not require investment in additional infrastructure (tablets, special equipment, etc.) for its implementation and operation.

• Apptaizer has tested and validated an innovative marketing and sales strategy for the acquisition of users (consumers) that will generate an exponential growth of the users base, connecting between 70 and 80% of customers in the affiliated venues.

• With the use of the platform, business employees can offer a special treatment to each clients (new or usual), by knowing their names immediately after synchronizing to a table, as well as their preferences and consumer trends.

• Apptaizer offers great flexibility and new opportunities in menu management, allowing businesses to manage several menus according to their needs (special seasons, promotions, special events, etc.), as well as create, delete, activate or deactivate products in real time according to its availability.

• Potential for expansion to other customer segments or sectors, such as: franchises or business chains, fast food businesses, food courts, hotels etc.

• Apptaizer is registered in Bogotá, Colombia (Apptaizer SAS) and Delaware, USA (Apptaizer LLC).

• Trademark registration before the Superintendence of Industry and Commerce of the Republic of Colombia.

See Gain Value:   https://drive.google.com/open?id=1IZStCmwd0HsM_ZVjZvbVk0jywM7eIetX

See Main Competitive Advantages and Differentiators:      https://drive.google.com/open?id=1focFGlTvRPwqKS0L7Tv85iT_9pHQilxS

The problem, solution, value proposition and business model has been validated by potential clients, through a survey / interview and demo conducted at more than 50 stores (including Restaurants, Bars & Pubs, both high and low customer turnover, businesses with 16 chairs to more than 300 chairs, from 1 waiter to 30 waiters) in the city of Bogotá.

The results of the validations regarding the problem and solution have been presented in previous sections. Based on the business model, the survey produced the following results:

• 87% of the businesses surveyed are willing or very willing to pay a monthly subscription for the apptaizer use.
• 75% of businesses prefer a subscription with a monthly variable rate according to the number of orders processed through the app.
• 83% are willing or very willing to implement this solution in their business as soon as apptaizer is released.

On the other hand, with our MVP we have ran tests, studies / measurements of time and movements (traditional mode vs. apptaizer mode) and validations in 4 pilot locations in the city of Bogotá: Beerkingos Pub, District Music Lab, The Nook and El Sindicato (alpha customers). Testing has included +100 users / consumers. Results of tests / measurements and user surveys:

• Waiting time reduction to access the menu, order, split the check, request the bill and pay from 45% to 70% and a reduction of staff movements between 40% and 50%, which translates into an important value gain regarding: productivity, efficiency and cost savings / labor efficiency.
• Regarding the problem for users: For 92% of consumers, what is most bothering for them during their stays in restaurants and bars are the long waiting times. 75% are uncomfortable or bothered by the process of splitting the check and 54% would like to check the menu before arriving the venue.
• Regarding the solution for users: 96% of consumers agree or strongly agree that apptaizer reduces waiting times to access the menu, order, split the check and pay. For 83%, the use of the app allows them to split and pay the bill automatically and easily. 67% of consumers agree or strongly agree that through the app they can see the menu of the venue and choose the most convenient place. These results show that apptaizer has an important impact on the user experience and solves its main problems during visits or stays in this type of business.

Pilot locations:       https://drive.google.com/open?id=1mpNi_6idPEo2WvXKZSUOwjUhsiQtJH8j

Currently, we have the approval of the Bogota Beer Company (BBC) & ZX Ventures Colombia SAS (AB InBev) to start this September a pilot program in 5 of the main BBC locations for 3 months, with the purpose of measuring the impact and determine the necessary adjustments in the BBC internal processes for the implementation of apptaizer in its 216 locations nationwide as of January 2020.

See Pilot Test Authorization Letter at Bogota Beer Company:       https://drive.google.com/open?id=1ZC2es58gxPSSXUt6CHebdRI_mJGAiiAL

Reactions from users who have tried apptaizer:

 https://drive.google.com/open?id=1eM6y8-0I_tPxxnM5eGKGQRpyRo9g3p_S

https://drive.google.com/open?id=1rDmF_GDdsanI9Aobr7G743k7N0mFje3m

BUSINESS MODEL:

Apptaizer business model includes 3 sources of income:

1) Subscription Payment (Monthly): businesses pay a subscription (variable) for the use of apptaizer according to the total number of connections per month in each location.

2) Transaction Commission (Payment Platform) - 2nd stage

3) Targeted Advertising (Push/SMS notifications advertising) - 2nd stage

Subscription prices have been established considering: 1) Labor costs and, 2) A waiter serves an average of 300 tables per month (data collected from the survey of +50 stores in Bogotá). That is, the rates have been established to be very attractive and profitable (cost-benefit) for business, considering the important benefits and impact on efficiency, productivity and costs offered by the use of Apptaizer in the full service of restaurants, bars and pubs.

See Suscription Prices Vs. Gain Value (USA):                    https://drive.google.com/open?id=1MYMLWbCFYCRVFtN-948K_KD-84jAUIOo

For users (consumers) the application is completely free (available in the appstore & playstore)

ROADMAP:

The apptaizer team has developed a route map or product innovation map with new feature launches, customer segments or new markets every six months.

Given the important impact and advantages that have generated the learning cycles (tests) and validation processes both for the knowledge and understanding of the market (customers, consumers and foodservice industry) and for the business development, the product and strategic marketing plans of apptaizer; our road map will be continuously refined and adjusted based on the results and  learnings of tests and validations processes. This methodology will continue to be a fundamental and strategic part of the key business activities.

See Roadmap:   https://drive.google.com/open?id=1vCsmZmQpC9wmdGEUkxmaIRASM3OFf3JD

GO-TO MARKET STRATEGY:

For strategic reasons of Team geolocation and because so far all our testing and validations (problem, solution, value proposition, business model and marketing strategy for users acquisition) have been carried out in Bogota, our initial market would be Colombia pointing quickly to international markets.

Our marketing and sales strategy will focus on:

1.- Creation of a commercial team to visit 30-35 businesses per month by sales representative. Our customer acquisition strategy (Restaurants, Bars & Pubs) also includes the creation of strategic alliances with industry associations (For example, In Colombia: ACODRES, ASOBARES, Colombia Restaurants and Bars Association. In USA: National Restaurant Association, American Nightlife Association. Globally: IHRA - International Hotel & Restaurant Association, International Nightlife Association)

2.- The implementation of an aggressive and innovative marketing strategy for the acquisition of users/consumers (tested and validated in our pilot tests), which will increase users base exponentially and will contribute to increase the number of locations with a higher subscription fee.

3.- Intense and strong campaign of promotion, advertising and marketing through: social networks, website, blogs, events, others.

STRATEGIC CUSTOMERS, PARTNERS AND/OR STRATEGIC ALLIANCES:

Currently, apptaizer has achieved an important strategic alliance with Bogota Beer Company & AB InBev, which consists of a 3-month testing program at its 5 most important venues in the city of Bogota with a view to implementing apptaizer at its 216 locations as of January 2020.

See Road Map of the BBC Pilot Program:             https://drive.google.com/open?id=1IRxkRtC6sF-RJIHpIxP-tEuXgr04xk33

Other possible alliances or partners:

• ifood (partner or potential exit strategy)
• Bancolombia (Mobile pay)
• Marketing and sales consultants or agencies
• Financial advisors
• Industrial Associations

See our Business Model Canvas:     https://drive.google.com/open?id=1k3EWJDV3uTJ-Lfr8kxUotMbvGUXMF5uU

KEY PERFORMANCE INDICATORS:

The apptaizer team has been working on the identification of key performance indicators supported by the Balanced Scorecard methodology and the 4 key business perspectives: Financial Perspective, Customer Perspective, Internal Processes Perspective and Growth & Learning Perspective

Some of the most important KPI´s that we will be handling are:

• Growth rate
• Total #Rest/Bars at the end of month
• % Conversion Restaurants / Bars
• User retention rate
• Conversion rate of leads to users
• User lifetime average
• Number of daily activations
• Viral acquisition rate

For more details, see our future Balanced Scorecard and Control Board (KPIs):    https://drive.google.com/open?id=1hplFYkBoQ7rCZPMgdvPKT4fuDzEvWlsv

The apptaizer team is integrated by 4 professionals and talented people, all with experience of teamwork and development of large local and international projects in their respective areas of performance. Likewise, all have worked for or with large and recognized transnational companies, which has given them extensive knowledge and business experience.

Shareholding:

Jose Heredia (40%)

Daniel Mendez (40%)

Jorge Chami (10%)

Liliana Heredia (10%)

Team Bio Review:

Jose Heredia is Electronic Engineer with +6 of experience as Technical Project Manager at Huawei, leading and developing projects in LATAM: Peru, Venezuela, Panama, Dominican Republic, Bahamas, Colombia. Jose is a software development enthusiast. He is the leader of the apptaizer MVP and product development.

View Jose's profile on LinkedIn:     https://www.linkedin.com/in/joseheredia182/

J. Daniel Mendez is accountant with specialization in business and international trade. He has +7 years experienced in logistics, customer service and consumer goods. His most recent professional experience is as Senior Customer Service Executive at Boston Scientific where he has participated in local, regional and global projects. J. Daniel leads the area of ​​sales and relationships with potential customers, allies and partners of apptaizer.

View J. Daniel's profile on LinkedIn:       https://www.linkedin.com/in/josedmendezs/

Jorge Chami has more than 25 years of experience in graphic design, advertising and marketing and also has a long career in filmmaking, video post-production and 2D & 3D animation. Jorge is the leader of the design, brand, image and corporate identity of apptaizer.

View Jorge's profile on LinkedIn:       http://www.linkedin.com/in/bjchami

Liliana Heredia is a Mechanical Engineer and Lean Six Sigma Black Belt with +20 years experience in process improvement, project management, Statistical Process Control (SPC), quality management systems and advisory. Passionate about process improvement and management with a focus on increasing speed, efficiency, productivity and quality. She is the leader of operations, tests design and business development of apptaizer.

View Liliana's profile on LinkedIn:     http://www.linkedin.com/in/liliana-heredia-s

Meet our Team:     https://drive.google.com/open?id=1StqFM32nxim3Qg-p8qlSAg0Cd0h3Yce9

FINANCIAL PROJECTIONS:

Our 3 years financial projections are based on:

1) Our business model, that is, revenue for: monthly subscription, transaction fee and targeted advertising.

NOTE: The monthly subscription prices are based on: I) Statistics of the average number of tables served by a waiter in a month and II) A Cost vs. Benefits ratio that offers businesses a gain value of at least 800%

2) An innovative, aggressive and proven marketing strategy that will allow exponential growth of users (consumers) in the affiliated venues. For this, our route map includes the development of a platform for waiters and the creation of a waiters community on our website. Well, they will become key allies for the exponential growth of users, under a win-win scheme

3) Strategic Alliances with Sector Associations and a sales force to boost customer acquisition (Restaurants, bars, pubs and full service cafes).

With our product innovation plan and aggressive marketing and sales strategies we estimate reaching the following goals or main milestones at the end of each year:

• First year: 1.000 Subscribed Restaurants & Bars and 32.000 users (consumers)
• Second year: 2.685 Subscribed Restaurants & Bars and 115.000 users (consumers)
• Third year: 5.300 Restaurants & Bars subscribed and 356.000 users (consumers)

See the 3-year financial projections of apptaizer:       https://drive.google.com/open?id=1yFTb_yOizpKkZ3foO0ukfq5Z11oGM1Qb

See the 3-year cash flow projections of apptaizer:     https://drive.google.com/open?id=1wBxK8-0uy1S4Ize6Ey2sNeyi8mbWYxlw

FINANCIALS & CAPITAL NEEDS:

So far all the resources (financial and human) that apptaizer has managed for research, testing and MVP development comes entirely from team members and founding partners. For a successful launch (including the apptaizer pilot program and launch on the Bogota Beer Company in January 2020), focused on exponential growth of users, we are looking for a capital of $ 50K, which would be used as follows:

Currently, Apptaizer is the technological solution for Restaurants, Bars, Pubs & Cafes more aligned with Colombia's Digital Transformation Plan and the goal of achieving a digitized country and a culturally current and innovative society.

Obviously, apptaizer provides great advantages to increase competitiveness and profitability for businesses, contributing to the economic growth of the sector in the country.

For the community and society in general, increasingly in need of taking greater advantage of time, apptaizer represents a great solution to minimize waiting times, better manage their budget for this item and gain greater control over their activities.

On the other hand, with apptaizer the working conditions of the waiters are improved, by allowing the reduction of movements from 40% to 50%, reducing fatigue, stress and exhaustion of staff. Apptaizer also aims to create a large community of waiters through the website, where waiters in addition to receiving economic bonuses for the connection of users, can also access tutorials, blogs, demos or videos to help them improve their capabilities and offer a better service to consumers.

Additionally, with apptaizer, businesses significantly reduce the use of paper by printing tickets, billing and menus, thus contributing to the protection of the environment.

With apptaizer everyone involved Win!... Join apptaizer and enjoy greatly!!