Replies to post #32863 on Lecere Corporation (fka LCRE)

[SMaturin]

I am not sure where your estimate of $1200/month comes from (double sigh!).

That was clearly stated to be a guess in the stickied post by Tenacious quoting Jim:

If we can average $1200 per month per restaurant...That is not a formal revenue projection, it is a guess.

The more detailed guess by River I saw previously said a per ticket cost of $0.05-0.25, estimating average 2400 tickets per month. At its most expensive, that is 2400 x 0.25 = $600, plus a $200/month fee, for average $800/month.

If a chain was doing more transactions at more locations, they would likely be getting the lower 0.05 to 0.10 per ticket fee, which drops that per location cost even further.

Say seven restaurants is about 20000 tickets per month at 0.10 per ticket. Now it is $2200 divided by seven restaurants, or less than $350/month per restaurant.

I do not know if that is the correct model. If each restaurant gets charged the monthly $200 fee and is generating one seventh of $2000 in transaction fees, it is still less than $500/month.

Add these figures to the much lower hardware costs and we come out way ahead of the fixed POS alternative when spread over 5 years. Especially when you consider the additional benefits of the FIRMS comprehensive Fully Integrated Restaurant Management System to reduce other management costs.

Five years is probably the outside figure for lifespan of such a system, given how rapidly IT changes, so spreading the initial costs of the $100K POS system over five years may not be realistic, either.

see http://investorshub.advfn.com/boards/read_msg.aspx?message_id=49748029

[riverandfold]

one thing you are forgetting in this 7 store example of standard POS system, doesn't factor in if the restaurants even stay in business. if they open up and have poor service or poor food they'll go out of business. That means all of that upfront cost is LOST, sunk cost and no revenues to offset.

The LCRE model is grounded by the per ticket charge. Which means the restaurants cost is directly tied to their Revenue stream. Way less risky and LCRE's success is directly tied to the restaurant's success. This relationship (ongoing) will strnegthen the need for great service and a great service product for the restaurant to be using.

If the restaurant goes with LCRE and then goes belly-up, then they aren't out very much money at all. This sounds very attractive for new restaurants.