Replies to post #16533 on uWink Inc. (UWKI)

[the big guy]

This seems to be a change in strategy. Focus on licensing and franchising rather than opening more company-owned restaurants. My interpretation: they had better do these restaurants right, because if they are not a smashing success they will not support franchises or licensing. Probably should be profitable with two restaurants as well.. they probably see that that is their best chance of success and are laying their cards on the table. They will either be successful or the thing will fold.

Good strategy but remember hat this is what every software company wants to be able to do. Making money on licensing technology is very difficult. You have to be better than everybody else and constantly evolve to meet customer needs. lots have tried... how many software companies and OS were there when Microsoft was just a player and how many survived?

[the big guy]

I think the previous strategy was to expand via opening more restaurants, either company-owned or franchised, with technology sales as being a perhaps profitable sideline. I never thought until now that they would rely on the technology sales route. This puts a definite cap on company-owned restaurants at 2.

The application of their technology to retirement homes announces some time ago will take years to develop. Not relevant right now.

This makes the short-term more exciting. But more risky. I would expect a major push to franchise once these new places open. If it is successful, it may be wildly successful.. if not. well.. There was an article recently that was posted here where the writer said that uWink would have to go to the markets again in the fall to expand... not now. Not in the cards, that will not work a second time. The article was overall positive; good concept and technology; expanding; but losing money was the gist of it.

The other day I was comparing this to Crocs, for some strange reason. Totally different business but Crocs came out of nowhere.. Good product but i think there was also a marketing angle. They established a good brand quite unexpectedly.. where cheap imitations would not do.

[the big guy]

there are a couple of specific differences in this announcement. It says that the new restaurants are "showcases". ie not supposed to necessarily be profitable in their own right..

and.. no more company-owned restaurants. Question. Will 3 restaurants be enough to build the brand? will people buy in? I think they would have to be a smashing success..

[Netman]

uWink: The power of “u”

http://blog.uwink.com/

From the moment you walk into a typical restaurant, it is you, the customer, conforming to the way the restaurant wait staff operates, not the other way around.

You are led through your meal from stage to stage with as much care as possible until you are out the door with a hearty tip left on the table.

What would it mean for you to be in control of this process?

What would it mean for the restaurant to conform to you?

That is the world we are moving towards faster and faster each day and one in which uWink is leading the charge. It is one driven by technology’s powerful ability to tailor the customer experience down to the individual who is right there, right now.

That is the “u” in uWink. It is the power of you in the ordering process. You are in control of what you order and when you order it. You are in control of your restaurant experience.

[Netman]

Try not to assume their full stratagy...

"Following the opening of our two new company-owned uWink restaurant locations, we expect to emphasize franchising and technology licensing over the development of additional company-owned uWink restaurants."

Remember...

Going further forward, their strategy is to leverage their technology assets and the uWink brand to:

Build and operate additional uWink interactive entertainment restaurants;

Franchise the uWink restaurant concept; and license their technology to other hospitality and public-space operators.



While they FOCUS on the then-current 3, of course they would then EMPHASIZE franchising and technology licensing, while contemplating uWink #4.


BB's - uWink is a technological / restaurant play, and a restaurant / technological market play.

http://www.volantesystems.com/clients.html

uV means very high profit margins and adds increasing revenue as clients update their integration... uV is NOT any deviation from the Plan – uV was part of the uWink Marketing Strategy from almost the very beginning as they were first laying their interconnection cables in their Woodland Restaurant. Again - uWink has not now... Just become a technological play – It Always WAS ONE (as I’ve said previously).

Via a table, sell some food and drinks = one deal (repeat idea)
Via software, sell solution to many = many deals (idea repeats)

Restaurant Revenue grows w/# of places and # of seats (occupied).
Software Revenue grows exponentially with each client's # of nodes.
(Plus add reoccurring updates and upgrades which add additional $$)

uV Will Provide an Ever Increasing Software Revenue Stream Expansion.
uW Restaurants Expansion will add an ever increasing # of Seats Expansion.