InvestorsHub Logo

DangerAbe

09/23/06 4:30 PM

#1301 RE: lmcat #1299

The first restaurant is 5300 square feet; 160 seats inside and approx. 45 seats outside with an expected revenue of 3.5 million (%650/sq ft) and free cash flow margins of 20%-30%.

You have to order food and/or booze to get credits for the games so that should keep out freeloaders.

Rawnoc

09/23/06 5:40 PM

#1302 RE: lmcat #1299

>> Does anyone know the square footage of the restaurant and what is their seating capacity? <<

I forget, but the exact numbers are in the conference call. Check it out.

>> Also, it appears that the restaurant games are free. What about their ability to "flip" the tables if people are sitting there playing for free?? A bunch of free loaders could damage the bottom line! <<

Not free. They come with purchase of food or drink. "Free loaders" have an option - either buy more food or drink or buy credits to play. The machines use a secret algorithim to assure minimum on average of $5 per customer per hour in profit. So if you order beer and the company makes $2 off that beer, you get to play for 24 minutes before the machine asks you to buy more food, drink, or buy more credits. This will assure a steady stream of high margin sales, especially from those customer who choose to buy credits instead of food/drinks of course.