SmartMenu is a meal recommendation engine that develops ordering kiosks and tablet menus that integrate with existing point-of-sale (POS) systems. It offers several software offerings, including a virtual cashier to improve order accuracy and efficiency, a virtual dietitian to support health-conscious customers, and deals/loyalty programs. SmartMenu generates revenue through monthly subscriptions, licensing models where franchisors sell licenses to franchisees, and hybrid pay-per-use models with monthly floors. It processes payments through credit card transactions and shares revenues with partners.

1. SmartMenu
The restaurant menu that knows you
JitenChhabra
Beth Mynatt
Paul Freet
Georgia Tech

2. What is SmartMenu?
SmartMenu is a meal recommendation engine. Our strategy is to seed the market by
developing ordering kiosks and tablet menus that tie into existing POS systems.
For Quick Service For Table Service
Restaurants Restaurants

3. Business Model Canvas – Week 4
DEMAND CREATION
PAYER Direct marketing All QSR’s
 Customers Website All Table Service
Software
 Sales Per Customer TV QSR Chains
development
 Repeat customer Trade Publications Non-high-touch
Hardware logistics
↓Labor costs POS Analysts table service
↓Labor training Franchisee Trials
Hardware supplier
 Order accuracy Franchise Consultants
POS provider Channel Partners
CRM
Credit card processors
 Server efficiency
Users
USER
IP (Algorithm) Intelligent Suggestions POS Providers Tier 2 POS Providers
HR Convenience POS Re-sellers
CC Processors
Daily Deals Providers (For Deal Redemption)
Food Service
Direct Sales
HR Nutrition analysis (For Virtual Dietitian)
Marketing
CUSTOMERS USERS
Data entry PARTNERS
Usage-Based Usage
Nutrition analysis CC Processing Residuals
Monthly Subscription
POS Referrals
Subscription
Nutritional Analysis
Licensing
Advertisers
Hybrid

4. Business Model Canvas – Week 5
DEMAND CREATION
PAYER Direct marketing All QSR’s
 Customers Website All Table Service
Software
 Sales Per Customer TV QSR Chains
development
 Repeat customer Trade Publications Non-high-touch
Hardware logistics
↓Labor costs POS Analysts table service
↓Labor training Franchisee Trials
Hardware supplier
 Order accuracy Franchise Consultants
POS provider Channel Partners
CRM
Credit card processors
 Server efficiency
Users
USER
IP (Algorithm) Intelligent Suggestions POS Providers Tier 2 POS Providers
HR Convenience POS Re-sellers
CC Processors
Daily Deals Providers (For Deal Redemption)
Food Service
Direct Sales
HR Nutrition analysis (For Virtual Dietitian)
Marketing
CUSTOMERS USERS
Data entry PARTNERS
Usage-Based Usage
Nutrition analysis CC Processing Residuals
Monthly Subscription
POS Referrals
Subscription
Nutritional Analysis
Licensing
Advertisers
Hybrid

5. SmartMenu Software Offerings:
Virtual Cashier
 sales per customer
↓labor costs
↓labor training
 order accuracy
 Server efficiency
Virtual Dietitian
 health-conscious customers
 menu-labeling compliance
Deals and Loyalty
 price sensitive customers
 repeat customers

6. SmartMenu Revenue Models:
Monthly Subscription Model Tablet $1000
- Includes all software features
Activation $1400
Support (2 years) $500
Monthly Subscription $200
Licensing Model Tablet $1250
-2 year license Activation $400
-Franchisor can sell license to franchisee
Support (2 years) $1000
Virtual Cashier $2000
Virtual Dietitian $1000
Hybrid (Pay-per-use with floor) Tablet $1400
- limited feature set Activation $1150
- $100/month (for the first $5k in orders)
- 2.5% of orders for ($5k to $24k in orders) Support (per hour) $100
- $600/month (maximum
Monthly Subscription $100-$600

7. SmartMenu Payment Flow:
Credit Card
Smart Transaction
Payment
Menu Diner Gateway
Pay-per-use
or
Subscription
or
Hybrid Cash Commissio
n based on
Licensing type of card
Fee based
Royalty or on type of
Licensing card
Franchisor Franchisee Merchant
Bank and
SmartMenu
Processor
License Residuals

8. Revenue First:
Target SmartMenus Customers of average Customers of average
Sold size = 10 locations size = 50 locations
$100k/month in 238 24 customers 5 customers
revenues 24 months 15 months
$1M/month in 2380 238 customers 48 customer
revenues 238 months 144 months
Assumptions
Market: Restaurants <200 units
Revenue perTablet $1400
Year 1 Personnel = 3 (50K per year)
Revenue per Activation $1150 Year 3 Personnel = 6 (70k per year)
Average Annual Support Revenues $500 Year 1 Financing = 300K
Series A = 3M
Average Monthly Subscription Revenues $200
Sales + Installation cycle for 10 unit chain 1 Month
Sales + Installation cycle for 50 unit chain 3 Months
Revenue from payment processing $0

9. Response to pricing:
Name of Customer Number of Locations Response to Price Quote
1 Tin Drum 11 Hybrid model with hourly support
2 Fresh 2 Order 7 Hybrid model with yearly support
3 Best Restaurant Group 8 Monthly subscription
4 Naked Pear Cafe 1 Pending
5 Chuck’s Famous 3 Monthly subscription
6 Tazikis Cafe 75 Pending
7 Atlanta Bread Co 200 Pending
8 Chameleon Mexican 1 Monthly subscription
9 Zapata 3 Monthly subscription
10 Great Harvest 12 Pending
11 Name TBD 0 Pending
12 Barkers Red Hot 4 Pending
13 Ingredients 9 Pending
14 Salad Works 200 Pending

10. Competitor Pricing
Virtual Cashier Hardware $6000
Tier 1 POS (Radiant, Micros)
Tier 2 POS (Hot Sauce, Dinerware) Software $3000
Tier 3 POS (Comtrex)
Support (2 years) $2000
Virtual Dietitian Nutrition Analysis $1000 per menu
Dietitian 60K per year
Deals and Loyalty Deals Up to 50% of gross sales
Deals (Groupon, Living Social) Loyalty $500-$1200 per year
Loyalty (POS providers, Plum Rewards)

11. Income Statement
Year 1 Year 2 Year 3
Total Revenue 242500 970000 1940000
Revenue from SaaS
Subscription fee 60000 240000 480000
Payment processing residuals 30000 120000 240000
Activation fees 57500 230000 460000
Support fees 25000 100000 200000
Number of total restaurant locations 50 200 400
Revenue from hardware
Price per SmartMenu 70000 280000 560000
Number of total restaurant locations 50 200 400
Total Expenditure 232000 604000 838000
Operating expenses
Cost of Goods 60000 200000 320000
Salary & Benefits 158000 365000 445000
CEO 50000 70000 70000
CTO 50000 70000 70000
Software Developer 1 50000 70000 70000
Software Developer 2 0 70000 70000
Support Executive 0 0 70000
Business Development Executive 0 70000 70000
General & Administrative 3000 5000 10000
Demand Creation 5000 10000 15000
Channel Commision (10 %) 6000 24000 48000
EBIT 10500 366000 1102000