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Robo....hit me up. Interested in what the recourse of some of the former franchisees are organizing. NY still owes me coin I will never see. osi.gregg@gmail.com
I concur with Robo....I spoke with Ryan at great length last week and felt, for once, we are heading in the right direction.
While we have certainly had our share of bumps and bruises, I am happy to report that I am on my second week of having 4 units with no major issues due to the software updates and Stoelting firmware tweaks. I have 3 other locations that want robots right now. I have hospitals and universities interested in hosting robots. I am on a group chat with other Franchisees that are having record days of froyo sales. I had one location do 90 vends on Saturday and is averaging about 30/day during the week. It's a marathon that requires patience. Even though the price is not reflective now, we are gaining steam and heading in the right direction.
On a side note, it would be awesome if Sonata would just sell VEND so we don't have to hear the pessimism everyday. The company is not a scam. The product is delicious and all the bugs will eventually be worked out. As a significant shareholder myself, I am unhappy with where the price is but I truly believe that it will recover.
I only offer one size at this time for a couple reasons and we have a price point of $5. One reason is that I don’t want to worry about filling the cash box with singles for change by going to $3 or $4 Another is that the cup is the same size whether you get a large or a regular. In comparison, the regular can make it appear that there wasn’t enough value if someone before you spent $1 more for a large. We shoot for a decent pour for $5 and have not received any pushback. Our first unit however did go into a more affluent place where I would typically spend more than $5/kid at a Menchies or Orange leaf. We are working with our locations to add the cost per kid into their birthday parties and give them promo codes for the kids to redeem treats. Some of those kids may not redeem but the treat has been paid for whether we vend or not. If we get pushback, we would simply change the price. Our net take should be conservatively 45% of the cost of the treat.
25 was definitely our worst case scenario. We have 35 cup days in a location that isn't the most consistent foot traffic. On the 2nd we will go into a place that is kind of like a mom and pop Dave and Busters. I expect we will do 100/day on the weekends at that location. They also do youth group lock-ins of 200-400 kids until 7am. The concession stand closes at 10pm so all they will have is vending machines for 9 hours. Locations are the key for successful franchises. We have to have the courage to say no to a particular spot. Hospitals have been the most consistent so far. For us, it is economies of scale. We know that we will have some locations doing the minimum and we will have some locations that will kill it.....trying to cherry pick locations in the beginning by securing them ourselves.
Regarding the seeking alpha article, I chatted with Peter Shapiro who was listed in the article. He and I were in training together a couple years ago. I specifically asked about the article and he said they "used all the wrong facts and assumptions" They have 5 units up and running with no issues. Like everyone, they had hiccups in the beginning but his 5 are running well.
We had 2 delivered this week with another coming on the second. Deliveries are ramping up. Corporate is setting site visits for me to explore potential locations. Based on our costs, a conservative 25 cups per day per machine nets us around $20-$25K annually per machine. The product is fantastic for those of you who haven't tasted it.
All of us franchisees have had bumps and lots of bruising with this start-up, but, if I can paraphrase Peter from our conversation, "If someone thinks they can just pour yogurt in the machine at this point and take out the money, they will not be pleased yet."
It's a marathon. It's frustrating. But at the end of the race, the goal is to be on the golf course daily while someone manages all these units for us.
Yes, Alvie.....Cincy
I’m having 2 units delivered next week and another after Christmas. June 2019. I am trying to stop watching it everyday because it’s a marathon.
The franchisees that bought shares thru the discounted offering are now selling them off to pay the remaining balances on their robots. Not the savvy investors and they will regret it when the stock rebounds. Our unit is averaging 40 servings a day and the product and the robot are solid.
The franchisees that took advantage of the discounted stock price are now selling off shares to pay the remaining balance of their robots that are now being shipped out. Not the savviest of investors. They will be kicking themselves once the rebound happens. Our unit is averaging 40 servings per day in a community center. The product and robots are good.
Mason OH. Northern suburb of the ‘Nati
Installed my first unit of many Monday afternoon. Relatively painless process. Huge excitement at our facility. Minor kinks to work out but all in all, I feel like our investments are poised to yield big returns.
The $5 price point will not be a deterrent in the correct locations. If you have ever taken a couple kids to a Menchies or Orange Leaf, you can't get out of that place for less that $12. We are placing one of ours in a hospital cafeteria where 3000 people roll thru everyday....the revenue will be there. Hopefully our biggest concern will be patrons having to wait in long lines to get their treat.
Disgruntled shareholder wanted names of all franchisees and when he wasn't given, he thought he would sell off in chunks to force the issue. Not a real sound financial decision.
Yes.....I am also waiting for the execution...the money, however, is in the stock. First unit to be installed this week in Philly. Next week in Houston......allegedly.
Your patience will pay off....trust the plan
Alvie, are you a franchisee?