Why eFood

1
Why eFood?

• Faster delivery
• Credit card or points options
• Order customization, clear transcription
• Track your order
• Time estimates for delivery
• Menu specials
• Up to date restaurant information

2
Customer Base

• Target customers Duke students
• On campus
• Off campus

3
Competitors

• DDS 3 managers taking phone orders per
  restaurant per night
  
• Poor business model
• Busy phone lines
• Incorrect orders
• Late deliveries
• CampusFood.com nationwide online ordering
• Poor selection
• Unreliable

4
Features

• Shareholders not necessarily managers
• Reduce workforce by approximately 67
• Only 1 manager needed per store per night
• Wider selection than CampusFoods.com
• No busy phone lines
• Faster, more reliable transactions
• Order tracking, email confirmation
• Personal information stored in database

5
What does eFood do?

• Two kinds of partnerships
• Staff managers for restaurants without existing
  delivery service
  
• e.g. Waffle House, Fosters, Cosmic Cantina,
  Chilis
  
• Sell system to restaurants already delivering on
  points
  
• e.g. Jimmy Johns, Subway, Dominos, Pizza Hut

6
Hours of Operation

• Full restaurant hours
• Except Waffle House, 7pm-2am

7
Customer Perks

• No need to reenter address, phone, credit card,
  points numbers
  
• Duke email serves as login
• Guest login also available
• Menus always available
• Ordering at leisurely pace
• Recommendations based on past orders

8
Customer Decision Process

• ?

9
Required Resources

• Employees
• Drivers 2-3 per store per night
• Managers 1 per store per night
• Ordering system
• Web server
• Computer at each store, interface to points and
  credit card systems

10
Ordering System

• Server update at the beginning of each night
• Manager enters specials information
• Store hours (if different)
• Any daily variables
• Orders are transmitted from server to stores
• Encrypted

11
Ordering System (contd)

• At the store, local computer
• Sends payment information to credit card/points
  service
  
• Organizes order for kitchen efficiency
• Prints order summary for kitchen and receipt for
  archival purposes
  
• Groups orders by proximity and time cycle
• This information will also be used for order
  tracking

12
Partnerships

• Listed restaurants
• Duke Points Service
• Credit Card Vendors

13
Financial Model Revenue

• Special delivery menus with 18 markup
• Markup covers auxiliary services fee
• Store keeps 85 of original menu price on all
  orders
  
• eFood keeps 15 of all sales on points sales
• eFood keeps 30 of all sales on credit card
  sales
  
• Assumes credit card vendors take 3
• Estimated monthly revenue 4950/store/month
• Estimate 30,000 total sales per store per month
• Credit cards sales constitute 10 of total sales

14
Financial Model Variable Costs

• Manager salaries 10/hour
• Assume 5 hour shifts per night per store
• Drivers work for tips only
• Supplies per store 20/month
• Broadband connection at each store 60/month
• Monthly variable cost projection 1580
• Salaries 1500 per store
• Networking 60 per store
• Supplies 20

15
Financial Model Fixed Costs

• Web server 2000
• Software 30 day trials, free
• One computer per store 600
• 2 staplers per store 6
• Fixed cost for first store 2606
• Each additional store 606

16
Financial Model Profits Per Store, First Month

• Gross 4950
• Variable 1580
• Fixed 2606 (first store)
• Net profit, first store 764
• Net profit, subsequent stores 2764

17
Financial Model Profits Per Store, All Other
Months

• Gross 4950
• Variable 1580
• Net profit 3370
• In our first year, assuming 4 stores, total rake
  103,416

18
Price/Earnings Ratio

• P/E ratio 11
• eFood is a relatively risky investment, but with
  high potential returns
  
• Current CD rates are 3 for 1 year CD
• Slightly riskier with 3 times the earnings
  potential
  
• Companys Value estimation 1,137,576

19
Growth Pursuits

• Marketing
• Advertising to freshmen, orientation packets
• Flyering campus
• Chronicle ads
• Word of mouth
• Bus advertisements
• Seeking additional restaurant partnerships

20
eFood.com

• Domain name is pending
• Financial forecasts for enabling technology
  services have not been estimated
  
• Questions?