CheckReady by Caroline Burgess

CheckReady

Bringing People, Places, and Things Together.

kR A ea For Restau d y TM Res r ta u a nt A p ran t Pe p ople

Andrew Atalla

Table Of Contents 1.1. Business Concept . . . . . . . . . . . . . . . . . . 2

1.11. Financial Features . . . . . . . . . . . . . . . . . 10

1.2. Problem/Solution Statement . . . . . . . . . 2

1.12. Financial Requirements . . . . . . . . . . . . 10

1.3. Current Business Position . . . . . . . . . . . 3

1.13. Sales Potential . . . . . . . . . . . . . . . . . . . . 11

1.4. Industry . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1.14. Profitability . . . . . . . . . . . . . . . . . . . . . . 14

1.5. Target Market . . . . . . . . . . . . . . . . . . . . . 4

1.15. SWOT Analysis . . . . . . . . . . . . . . . . . . . 17

1.6. Products and Services . . . . . . . . . . . . . . 4

1.16. Competitive Strength Grid . . . . . . . . . . 18

1.7. Early User Interface Planning . . . . . . . . . 5

Sales Presentation . . . . . . . . . . . . . . . . . . . . . . 19

1.8. Core Competencies . . . . . . . . . . . . . . . . . 7

Visual Brand Elements . . . . . . . . . . . . . . . . . .

1.9. Market Analysis . . . . . . . . . . . . . . . . . . . . 7

Works Cited . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.10. Market Share . . . . . . . . . . . . . . . . . . . . 10 1

1.1. Business Concept: CheckReady™ is an all-in-one restaurant app that acts as an interactive business platform between restaurants, employees, and guests. This first of its kind app boasts 24 features making it the most comprehensive app on the market to date. CheckReady™ will position itself as an all-in-one restaurant app for restaurant goers as well as a friend of employees and the establishments they work at. It’s uniqueness; however, stems from the “Green Light” feature, which allows guests to save their favorite servers/bartenders and see if their working the next time they dine out. CheckReady™ is designed to streamline a guests dining experience from start to finish. It does this by integrating with platforms such as HotSchedules®, OpenTable®, Aloha®, Facebook®, and Instagram®. A guest will be able to search a restaurant, see reviews, book a reservation, check-in, invite friends, take photos, make a payment, rate their visit, and send gift cards all through a single app. If you’re dining in you have a multitude of take-out and delivery chains to choose from as well making CheckReady™ a well-rounded app. At its core CheckReady™ is a restaurant app for restaurant people, and with it, all other restaurant apps become obsolete. Our plan is to partner with HotSchedules®, an industry leader in online scheduling, offering a percentage of the company for an initial capital injection, resources, access to partners, and user base. Then we will partner with industry leaders like OpenTable®, GrubHub®, Fandango®, and Uber® to bring our all-around user experience to its maximum efficiency, solidify our competitive advantage in the market, and to generate additional revenue from referral fees. We believe transactional-based business models will become obsolete as competition grows fierce and competitors like OpenTable® move to position themselves against competitors like SeatMe® who got rid of their cover fees already. Where we can, we’ll enjoy additional revenue from referral fees and use them to grow our business in areas that will offer continuous cash flow in the future such as payment and online ordering. Once we’ve solidified ourselves as the number one restaurant app we will make moves into retail and hospitality as well as appointment based professions.

1.2. Problem/Solution Statement: Problem: 1. In the age of Online Scheduling, with shift-swaps, last minute changes to schedules, vacations, and emergencies, it’s hard for a guest or patron to know when a particular employee is working.

2. On both ends of the spectrum somebody is left out. The leading technological innovators in the restaurant, hospitality, and retail industries are leaving out the employees. Some leading social platforms are including patrons and staff but are leaving out the restaurants and corporations they work for. There’s no single platform that brings organization, employee, and guest together. 3. There’s no single platform that “does it all.” For example: Yelp® does online ratings and searches, they’ve even acquired SeatMe® and Eat24® in an effort to expand their portfolio and cater to the growing number of restaurant goers who are embracing technology as part of their dining experience; however, they’ve been slow to combine all functions into a single platform. A guest doesn’t want to open a different app for every different thing they do. They want a single app that’s their “go-to” for everything restaurant related. 4. There are a lot of “back-end” platforms that such as Point of Sale Systems (POS) and Restaurant Reservation and Management Systems (RRM) that don’t have a face or presence in the consumer marketplace. For example: all restaurants have a POS Systems but they require an employee interaction at a stationary computer. Same with RRM Systems who require a Host or Manager to operate a stationary computer at the Host Stand or Back Office. 5. There’s not a professional platform for guests and employees to interact socially. If a bar regular wants to see if a bartender is working they have to employ a private method of communication such as a cell phone or social media platform. Neither of those options are professional in nature and neither allow an organization to monitor activity between employee and patron. 6. Online Review Sites such as Yelp® leave out peer review functions. This leaves employees and organizations at a disadvantage because they can’t defend negative comments and ratings. Solution: 1. CheckReady™ provides a green light feature that allows a guest to visibly see an indication when an employee is “on the clock.” Messaging features can provide the same functionality simply in a notification-like format. 2. CheckReady™ acts as a social and business platform between organizations, employees, and guests. Never before has a single platform combined all three entities in one place.

3. CheckReady™ is an “all-in-one” restaurant app. You can search restaurants, gather reviews, book reservations, redeem gifts, order, and make payments all from a single app. There’s no switching from app to app anymore; finally you have a one stop shop for everything restaurant related. This methodology expands into retail and hospitality industries as well and even takes into account the guest who wishes to dine-in. 4. CheckReady™ gets a good chunk of its all-in-one functionality from its integration with existing restaurant platforms. It brings all technological conveniences into one place and presents it to the consumer in an easy-to-use streamlined app. The restaurant and all its support systems are literally in the guest’s (and employee’s) hand. 5. CheckReady™ is an interactive social and business platform that brings together employees and guest in a professional environment. All guest interactions are documented and easily viewable for organizations whether it be commenting, rating, or messaging. Also, privacy settings allow an employee full discretion over who they interact with and how. 6. CheckReady™ allows for Managers to review bad comments and ratings and quite frankly, erase them. With CheckReady™ there’s no anonymous posting, every patron that wants to use the app has to log in. This promotes positive reviews over negative ones and the ability to take down statements that simply aren’t true.

1.3. Current Business Position: CheckReady™ is an S Corporation currently owned by founder and Chief Executive Officer Andrew Atalla. He created the app design and layout over the course of several months while working as a server at Sweetwater Tavern in Centreville Virginia, a member of the highly acclaimed Great American Restaurants chain. Once the initial vision for the app was laid out Andrew immediately brought on freelance Graphic Designer Caroline Burgess in order to digitalize his sketches. He then set out to incorporate and trademark the CheckReady™ brand through Jerry Joseph, P.C. as well as secure the Intellectual Property Rights for several unique features of the app. CheckReady™ plans to partner with HotSchedules® of Austin Texas who provides “employee scheduling and labor management solution(s) as well as “mobile, cloud-based technology for the restaurant, retail and hospitality industries [1].” CheckReady™ will ask for a capital injection of $1,000,000 for a 25% stake in the business. $500,000 will go towards building the app itself and $500,000.00 will go to initial sales and marketing efforts. CheckReady™ will use a simultaneous top-down and a bottom-up approach to its marketing. We will target both restaurants from the corporate level as well as employees and guests from the grass-roots level.

We plan on establishing strategic alliances with companies such as OpenTable® in order to gain access to an already growing user base as well as automatic booking and payment functionality. We will also forge alliances with companies like GrubHub® in an effort to bring even further functionality to our app through online to-go/delivery ordering and payment. We will position ourselves against companies such as Yelp®, Zagat®, Foodspotting®, Zomato®, SeatMe®, Eat24®, and TripAdvisor® as being a better, more encompassing app experience. We also plan on selling ourselves as a referral service to companies such as Uber® and Fandango®. When a guest books a reservation of pays a bar tab there’s a high likelihood they’ll leave the app thus ceasing any revenue generation from that user. At these exit points we’ll prompt the user with messages such as “call an Uber®?” and/or “dinner and a movie?” This will direct the user to apps such as Uber® and Fandango® where we’ll collect a referral fee. Our goal is to be the number one restaurant app in the world in terms of downloads and active user base. We aim to have 100% of our conceivable U.S. market (200,000 full-service restaurants) within a 10-year time frame. Once we’re in every phone we plan on expanding our reach to every corner or the restaurant, retail, and hospitality industries as well as to various appointment based professions such as hair stylists, personal trainers, and massage therapists. Our slogan will change from “a restaurant app for restaurant people” to “all your favorite people, places, and things—together.” Of course our mission statement will remain “bringing all people, places, and things together” as that was our mission from the beginning. We simply see an opportunity to take the full-service restaurant industry by storm so we’re starting there and working our way outwards. We want to get our app in as many phones as possible as soon as possible and the best way to do that is through restaurants. Why? Because it’s simple—everyone has to eat and Americans are addicted to dining out. Once their using our app on a regular basis we can easily expand into other industries because we already have the name recognition and user base.

1.4. Industry: CheckReady™ serves the food-service industry primarily in the realm of full-service restaurants. The reason being is our focus on the “Green Light” feature as well as generating in-house business for restaurants, servers, and bartenders. Secondary realms include the tavern, bar, and nightclub industry as well as the online ordering industry and the online review industry. We’ll serve these industries mainly through reservation booking, gift offerings, and payment features while offering comments, ratings, and guides on the best restaurants, bars, servers, and bartenders in the area.

Overall, in each of CheckReady’s™ 4 main market segments, there is tremendous room for gaining market share. Not only do the leading competitors have less than 10% of the conceivable market across all segments, the remainder of the market is segmented and far behind. In this regard, any barriers to entry would come from lack of differentiation and ineffective marketing. Furthermore, CheckReady™ single-handedly competes across all segments. No other company does this through one app; the closest all-around competitor is Yelp® who recently acquired SeatMe® and Eat24®. Even with that portfolio Yelp® is still at disadvantage 1) because we have the first true all-in-one restaurant app and 2) because we have the “Green Light” functionality. Without it servers and bartenders are virtually non-existent on their platforms.

1.5. Target Market: CheckReady™ has four main target customers: 1. Restaurants: By creating a strategic partnership with HotSchedules® we expect to gain access to a potential user base of 110,000 restaurants and 1.8 million active users. These are restaurants who already participate in online scheduling as well as reservation booking and that have already invested resources into digitalizing their operations. By creating a profile with us, they’ll be able to maximize on those existing platforms while adding a social dynamic and a better comment/rating system than what Yelp®, Zagat®, and Zomato® have to offer. Although restaurants are not our only potential revenue stream they’re by far our largest. If we added CheckReady™ to the family of HotSchedules® apps and sold it to restaurants as a $20 value add on, we could generate a potential revenue of $7,920,000 annually if we sold the add on to 30% of HotSchedules® existing clients (33,000 restaurants). When a guest books a reservation, uses a gift, or makes a payment through our app we’ll take a small percentage from the restaurant as well. Reservations and gifts will have a cover fee of $0.25 and payment will have a surcharge fee of 1%. 2. Employees: Servers/bartenders are the greatest potential source of advertising for CheckReady™. Not only will they talk to their customers about the app but also they’ll talk to thousands of business owners about adopting the platform. Word of mouth advertising is the most effective form of advertising due to the cost vs. impact ratio. For this reason, we will give employees the app for free and ask them to spread the word to our other two target customers: restaurants and guests. With 1.8 million active users on HotSchedules® we can expect a similar following. 3. Guests: Our guest users are our most important asset because they will be generating revenue from local advertisements as well as from redeeming gifts. Therefore, the more we can get guests to engage with our app on a consistent basis the more residual income we can generate from the app itself. More guest users means more employee users which

means more restaurant users in the long run. iOS® and Android® typically pay about $3 for every 1,000 views on a banner ad. If we can reach 20% of the 139,200,000 active iOS®/Android® users in the United States we would generate an additional $1,002,240 annually. If we can charge restaurants for reservation booking, gifts, and payments through our app we could quadruple this number.

We are the first and only true all-in-one restaurant app and revolutionary in the sense that it keeps all three guests, employees, and restaurants in mind. With this being said, CheckReady™ creates a solution for the tech-savvy guest, the restaurant trying to compete in the digital age, and the server/bartender who wants to stand out above the rest.

4. Local Advertisers: If we followed Yelp’s® style of local based advertising methods the potential revenue stream could be far greater than that of with iOS®/Android®.

1.7. Early User Interface Planning: 1. The CheckReady™ user interface will consist an “App Home Screen” which houses the 6 main features. These features include:

1.6. Products and Services: The CheckReady™ app is our flagship product and all our services are incorporated into its multi-functional design. The CheckReady™ is a sleek and sophisticated app that acts as an interactive business platform between restaurants, employees, and guests. For a restaurant it offers several key services integral to the functionality of their business. From reservation booking to payment functionality the CheckReady™ app can integrate with all existing systems and automate guest interactions. Even if a restaurant doesn’t have an OpenTable-like reservation and guest management system a guest can have their reservation verified through the app via a manager on duty. The app itself can act as a reservation and wait list or it can link directly to an existing one. For a server or a bartender CheckReady™ could mean an extra $20 in your pocket at the end of every shift. By utilizing our services a server can let their regulars know when their working and a bartender can send out gifts to entice guests to join them at their bar. For a guest CheckReady™ is an all-in-one restaurant app second to none. Guests can look through guides and see what the best local restaurants are in their area, check out menus and reviews, book a reservation, order a delivery, and pay directly through the app. Gone are the days of looking up reviews on Yelp®, booking through SeatMe®, and ordering through Eat24®. All a guest needs is the CheckReady™ app on their phone and they’ll have everything restaurants in one place. Our services are more a list of features than a list of services. CheckReady™ has 24 unique features: • Search • Guides • Profiles • Menus • Check-Ins • Invites

• Top-Picks • Referrals • Network • News Feeds • Green Lights • Privacy

• Messages • Notifications • Take-Out • Delivery • Reservations • Wait Lists

• Comments • Ratings • Photos • Gifts • Payment • Gift Cards

a. Profile: Each user can create and customize their individual profile. A restaurant can display their menu, daily specials, and happy hour information. A guest or employee can display their education, work history, hobbies, and other relevant information about themselves they’d like to share. We will work with companies such as Facebook® and LinkedIn® to import information from these existing profiles while creating ours. b. Network: There will be several ways the user can filter their network depending on which kind of profile they have: Restaurant, Employee, and Guest. The restaurant can show their staff arranged in hierarchal order. An employee can sort by regulars first, friends second, and they can switch between being an employee and guest. Guests can view who’s working based on their favorite restaurants first, or they can simply view who’s working. They can even filter based upon the frequency they visit so they their most visited servers/bartenders show up first. c. Gifts/Promotions: A manager or employee would use their gift screen to assign gifts to particular regulars they want to attract. A guest can view all gifts, deals, and promotional items from their gift screen. For example: any buy one get one free promotions, any free appetizers or deserts, any by ten get one free deals. Gift cards will also be accessible here. Guests can buy and send gift cards to other guests who have the app as well. When it’s a guest’s birthday a restaurant or employee can send a gift automatically. For example: “Have a free desert on us! Happy Birthday!” Also, BOG (Be Our Guest) cards, which are similar to Gift Cards in nature and are given to guests who had a bad experience in an effort to get them to come back, can be sent through the CheckReady™ app. d. Reservations/Wait Lists: Guests can book a reservation based on restaurant, server, or availability. The main reservation screen will show all the available establishments that have reservations open as well as the specific time slots. A guest can book with a particular server. On busy shifts they’ll be given the option to choose

a backup one or two servers and even then sitting with your favorite server will not be a guarantee. e Payment/Ordering: A guest can look up their tab directly from their phone or they can scan it into their phone using a code on the receipt or they can type in a check number and any unpaid checks with that number will appear. A guest can pay directly from their phone and a server can even order through their phone and take payment on their phone in the future. f. Take-Out/Delivery: There will be a toggle between take-out and delivery at the top of the screen and we will partner with multiple online ordering companies such as GrubHub® to bring a plethora of options to our guest users. Guest can order and pay directly from the app as well. 2. The guest will have “Payment” and “Delivery” visible on their “Home Screen” while employees will have “Green Light” and “Comments/Ratings” visible on their “Home Screen.” a. Switch Profile: Mainly for employees who use the app as a guest too. Allows them to easily switch between the two. b. Green Light: Only available on employee profiles. Allows an employee to quickly and easily toggle their green light on or off. c. Switch Profile (Bottom Left): Mainly for employees who use the app as a guest too. Allows them to easily switch between the two. 3. Some features will be accessible from any screen. This means they always appear at the top and bottom of the screen for quick and easy access to specific features: a. Back Arrow (Top Left): Allows the user to quickly go back to the previous page. b. Quick Add (Top Center): Allows the user to add another user via OR code or by looking up a name. c. Drop Down Menu (Top Right): Brings down a drop down menu that lets the user access virtually every feature of the CheckReady app. Employees who use the app for personal use as well will be able to “Switch Profile” from an employee to a guest and vice versa. 4. A “Dashboard” will be visible on the bottom of all screens to make integral features readily available for employees and guests:

d. Search/Guides: Will be a multifunctional display with the primary characteristic of the feature being a map. A guest can filter based upon restaurants, people, and gifts. Guides will also be accessible directly from the search screen by clicking a button in the lower right hand corner. Guides will include people and establishments and will read “Best Bartenders in DC,” and/or “Best Chef ’s in NOVA,” and/ or “Best Restaurants in Georgetown.” A guest can also use their location to pull up the restaurant page for menus, daily specials, and happy hour information. They can do this by clicking a button in the lower left hand side of the search screen. e. Alerts (Notifications): All notifications will be collected in one place for easy viewing. If the user allows the app to send them notifications they will be displayed on the phones lock screen as well. f. Home: This will take the user to the “App Home Screen” aka square one. g. Messages: Employees and guests will be able so send messages to each other on a secure, professional platform. The overall functionality of the messages will work much like HotSchedules® messaging feature. If we could we would like to borrow the code directly from HotSchedules® and implement it in CheckReady™.

restaurants photos as well as the menu. Employees and guests can post photos to their news feed, the restaurants page, the employees page, the menu, or to social networking sites such as Facebook®, Instagram®, and Google+®.

have celebrity profiles like Anthony Bourdain where others can view and see their favorites. This will work for locals too, a top local could have their favorite picks and a visitor to their town or city could see what’s good according to them.

b. Basic Information and Green Light: Available at top right next to the photo. Employees would have things like the restaurant they work at and city/state. A button that allows a regular to view the employee work schedule would also be present.

k. Network: If the user allows it others can view a restaurant, employee, or guests network directly from their profile page. They can even see if there are any connections in common.

c. Add: Add a restaurant, employee, or guest directly to your network from the their profile. d. Message: Message a restaurant, employee, or guest directly from their profile.

All-In-One Functionality:

e. Restaurant/Menu: An employee’s profile would have a link to their restaurants profile. A restaurant would have a link to their menu. The menu would also allow a guest to filter it based upon food allergies and preferences.

CheckReady™ is the only app on the market that “does it all.” We’re seeing a shift in the industry where companies are buying complimentary businesses and integrating horizontally; however, everyone is keeping their apps separate from one another. For example, Yelp® bought SeatMe® as well as Eat24® and is pursuing a similar approach as CheckReady™. What makes our approach superior is that we’ve integrated all functionality into one single app. Where Yelp® has a brand of apps we have one single app branded as the all-in-one app. Integration or Stand-Alone Capabilities:

f. Book a Reservation: Directly from the restaurant or employees profile page.

h. Settings (Bottom Right): Accessible from any screen. Allows quick access to settings such as notifications or privacy.

g. Check-In: Primarily for bar guests but for dining guests too. Links with Facebook and allows the guest to tell friends their at an establishment. Also gives them the option to invite others.

5. The CheckReady™ app will also have a “Take Photo Screen” and a “News Feed” that will be connected to the “App Home Screen.” The user can swipe right to view their news feed and swipe left to take a photo.

h. Payment: Allows a guest to pay directly from the restaurants profile. They can look up their location via search and they can pull up their bill directly from the CheckReady™ app.

a. News Feed: All posts from restaurants, employees, and guests will appear on users news feed. CheckReady™ can also use this feature to place local ads and generate revenue.

i. About: Houses relevant information about restaurants, employees, and guests. For restaurants it’ll house address, events, happy hour information, daily specials, etc. For employees it will house work experience, education, and other relevant information such as hobbies. For guests it will house profession as well as top picks and favorite dishes.

b. Take Photo: CheckReady™ will allow a user to take a photo, add a filter, caption, and tag restaurants, employees, guests, food, and beverage items. It will also allow a guest to post to various social networking sites such as Facebook®, LinkedIn®, Instagram®, Twitter®, Google+®, Pinterest®, Tumblr®, Blogger®, etc. 6. The CheckReady™ app will also have a multi-functional profile that allows a guest to access multiple features from a restaurants or employees page. a. Photo(s): An employee can post photo(s) of himself or herself. A restaurant can post photos of their logo, food, décor, and staff. Any profile pictures of the staff will link to the restaurants photos. Any food photos taken by guests will link to the

1.8. Core Competencies:

j. Comment/Rate: Mainly a feature on the restaurant/employee profiles. Allows guests to comment on their visit, give a thumbs up or thumbs down. Allows them to rate the individual establishment based on friendliness of service, cleanliness, décor, ambience, kitchen, bathroom, speed, and accuracy. Allows them to rate servers/bartenders on friendliness, speed, accuracy, food knowledge, beer knowledge, and wine knowledge. A guest can choose restaurants, employees, food items, and beverage items as their “Top Pick(s).” Basically saying those selections are their favorites. Almost like a badge of honor. Top picks will also show up in the guest profile. Anyone can go on a guest profile and see their top picks—this means we can

CheckReady™ is an extremely versatile app designed to fit to conform to any restaurants needs. Every restaurant has a Point of Sale System which means we’ll be able to integrate into any payment scenario as long as we partner with the system developer. The thing is, not all restaurants have the capacity, volume, or resources to use a restaurant reservation and guest management system. If they are of the size where they’ve purchased one of these systems we can easily integrate and direct our guests requests via an automated route. If it’s a small business that only does a few reservations a day our solution can also improve the quality of their guests dining experience as well as streamline their system. No more calling and booking a reservation, those days are over. Cost Leadership: We at CheckReady™, although want to capture as much revenue as possible, understand that in order to lower market entry barriers we must take both a differentiation approach as well as a cost leadership approach. Yes, we differentiate ourselves from the rest of the pack but we also beat their prices by a long shot. We think that companies like OpenTable® and GrubHub® are charging far too much for their services and for that reason a lot of smaller restaurants aren’t joining onboard. This is evident with the fact that no single competitor has more than 10% of the conceivable market and some

of them have been around for 10 years. It’s understood that developing markets such as the technology field in the restaurant industry can be slow to respond; however, we think that their lack of adoption of these new and significantly impactful products is based primarily on the fact that they cant afford our competitors prices. That’s why we’re offering our services at the low end of the cost spectrum. Network and “Green Light:” CheckReady™ plans to leverage our patent of the “Green Light” feature to our advantage as well as the patents of our “Small Restaurant Reservation Booking System” and our “Comment/Ratings Rebuttal System.” Once competitors start imitating our all-inone approach we’ll further leverage our network of restaurants, servers/bartenders, and guests in order to gain and maintain market share. If we win over these three segments we’ll continue to stay relevant as the competition becomes fierce. Dynamic Capabilities: At CheckReady™ we’re poised to seize any corner of the restaurant market whether it be restaurant searches, guides, reservations, payment, or online ordering. With a multifaceted approach to our business we employ a perspective that allows us to “create, deploy, modify, reconfigure, upgrade, or leverage [our] resources in [our] quest for competitive advantage [2]. We will remain nimble and fluid in our attack on the restaurant industry capturing value whenever and wherever possible. We will stay ahead of the curve implementing new technologies as they’re introduced. Our design and development team will constantly be looking for ways to out the competition.

1.9. Market Analysis: Size: According to Statista, a company that pulls “statistics and studies from 18,000 sources,” there were 635,033 restaurants in the U.S. fall 2013 [3]. A separate article from the NPD Group dated back to January 23, 2013 states “the quick serve restaurant (QSR) segment…showed a 1 percent increase in units or an additional 4,037 units [4].” over the previous year. At 100% that would mean the quick service restaurant segment had a little over 403,700 restaurants in 2013. By subtracting 403,700 quick-service restaurants from the total of 635,033 restaurants we can derive a full-service restaurant number of 231,333 in 2013. We’ve seen a slight decline in restaurants in the U.S. leading up to 2015 so currently there are 630,511 restaurants total and 229,685 of those being full-service. We can also reach 65,116 taverns, bars, and nightclubs as well as take a chunk of 70 billion of annual take-out/delivery orders and 14,630,000 annual restaurant reviews.

Structure: We at CheckReady™ believe the market structure to be a “perfect competition” with “many buyers and sellers, none being able to influence prices [5].” This is evident by the fact that no one single competitor in any of our four market segments has more than 10% conceivable market share. Also, price points and even the pricing methods themselves vary greatly between competitors. For example, OpenTable® charges cover fees between $0.25-$1.00 per guest, and a $199.00 subscription fee monthly. SeatMe®, who is trying to get their foot in the door, offers installation free of charge, no cover fees, and only a $99.00 monthly subscription fee. Examples such as these are evident across all market segments mainly because the restaurants don’t know how much to pay for these new technologies and have previously been subject to a very select group of companies that keep their prices at a premium. PESTLE Analysis: • Political Factors: “Danny Meyer (of Union Square Hospitality Group in New York) is eliminating all tipping at his restaurants and significantly raising prices to make up the difference, a move that will raise wages, save the hospitality industry, and forever change how diners dine” he says [6]. This can potentially harm CheckReady’s™ presence in large markets such as New York. While we will still promote the server/bartender positions we will focus a good portion of our business on factors that don’t involve them such as online ordering, gifts, and online payment functionality. • Economic Factors: Come in the form of 5 primary factors: • Growth Rates: The United States economy emerged from recession in June 2009 and has been growing for nearly five years [7].” This is further evident in World Bank data that shows an increase from 1.6% annual growth in 2011 to 2.4% annual growth in 2014 [8]. Even in a recession restaurants will remain a centerpiece of American culture. When growth rates are low competition becomes fierce and restaurants will be looking for ways to increase their bottom line. By streamlining their operation and attracting more guest through our CheckReady™ app we’ll remain relevant even in an economic downturn. Because we are largely a transaction-based service it’ll be hard for us to have a negative impact on restaurants. In the event of an economic boom our competition will become greater but our entry barriers into new restaurants will lower leaving an ideal scenario for gaining market share. • Interest Rates: Since overnight banking rates are as low as they can possibly go; it’s unlikely we’ll see a boom from cheap credit. If interest rates rise we can expect a

tightening of resources industry-wide and slower growth rates for expansion. This means reinvestment of capital rather than relying on outside lending. • Levels of Employment: Unemployment rates continue to decline in the U.S. [9]. This means a growing base of servers/bartenders and a strengthening of our brand. In a downturn we can rely on other methods of revenue generation such as Automated Reservation and Ordering Systems. • Price Stability: “The lack of change in price levels of goods and services” [10] in a perfect competition is unlikely. It’s assumed that price levels will lower as competition becomes fiercer. This is where CheckReady™ will employ a cost leadership strategy in order to weed out the competition. • Currency Exchange Rates: Will be critical when it comes to oversees expansion. At the present moment the Dollar is neck in neck with the Euro making it an ideal scenario to expand into Europe and elsewhere. In markets such as China where the Yen is strong in comparison to the Dollar we may face slower growth because of this entry barrier. • Sociocultural Factors: “These factors capture a society’s cultures, norms, and values” [11]. Ideally, CheckReady™ would be an influencer of sociocultural values when it comes to taking care of servers/bartenders. We’ll do things like suggest 20% tips when guests are paying out and base it on the idea that good service should always equate to a 20% tip on the tip line. CheckReady™ will also bring the server/bartender into the spotlight; a move not previously attempted by other organizations. We plan to create a ripple effect in the restaurant industry where employees are treated as what they are: names and not numbers. Companies will pay a lot more attention to their employees because people will be coming to see them just as much as they’re coming for the food and drink. • Technological Factors: There’s been a renaissance in the restaurant industry as more and more restaurants take a step away from traditional technologies and move towards future ones such as Online Ordering Systems, Restaurant Reservation and Guest Management Systems, and App Payment Functionality. These technologies will eventually make servers/bartenders obsolete in the distant future for a lot of establishments particularly in the quick-service realm. CheckReady™ will do our best to promote friendly and attentive service by real people in an effort to keep employment rates high among servers/bartenders; however, in the event that the industry shifts to fully automated services we’re right there in the forefront of that wave. • Ecological Factors: These factors “concern broad environmental issues such as the natural environment, global warming, and sustainable economic growth” [12]. Largely, CheckReady™ won’t have to worry too much about harming the environment; however,

we do have an obligation to lessen our impact on the environment where possible. For example we will employ strategies like companies such as Facebook® to reduce carbon emissions and energy consumption in places like our server farms. • Legal Factors: In terms of laws, mandates, and regulations CheckReady™ won’t see much of an impact. Legal factors will most likely come in the realm of Intellectual Property Rights and Patents. Since our product has a lot of the same features as numerous other products on the market we may run into legal issues with Patent or Copyright infringement. The same goes the other way around—we’ll most likely have our “Green Light” feature duplicated by competitors who are trying to gain competitive advantage by using our strengths against us. This is where a strong legal team is important on both ends: patent law and litigation. Growth Prospects: CheckReady™ has 4 main market segments we’re competing in: • Full-service restaurants (reservations, gifts, payment, and reviews). • Taverns, bars, and nightclubs (gifts and payment). • Online ordering (take-out/delivery). • Online review and mobile search (comments, ratings, guides). In an article from businessinsider.com dated October 26, 2011 OpenTable® [stated] its 20,000 restaurants [were] only about 9% of the possible market it could reach [13].” That figure means OpenTable®, a competitor who offers similar reservation and payment features, sees a total market of 222,300 restaurants. This number is on par with our calculations and further strengthens our findings. The leading reservation booking site is OpenTable® who books 15,000,000 reservations a month across 32,000 restaurants as of 2015 (468.75 reservations per restaurant). With the leading competitor having a 14% market share we see a great future market potential for the CheckReady™ brand, which costs a fraction of the price of its leading competitors, can integrate with virtually any Restaurant Reservation and Guest Management System, and can use the “Green Light” feature to confirm reservations through managers eliminating the need for any reservation system entirely. Concordantly there are 65,116 taverns, bars, and nightclubs in the U.S. that will directly benefit from our services in the form of gifts for those establishments who offer food [14]. For those establishments who don’t offer food the payment features will prove vital to our survival in this realm. If we can make it easy for a guest to pay their tab when they want to leave, even from outside, we can prove ourselves a useful partner in this market. If we can reach half of this conceivable market it will put us over the

250,000-restaurant threshold and help drive business for thousands of independent and chain establishments. Not only does CheckReady™ serve the full-service restaurant, we’ve incorporated take-out/delivery features as well. This opens up the Online Ordering market segment and farther diversifies our brand. The leading competitor in the online ordering realm is GrubHub® who recently merged with Seamless, the other leading competitor. According to an article by Forbes dated July 13, 2015 “[b]y Citi’s estimate, just four percent of the $70 billion annual U.S. independent restaurant takeaway and delivery market was transacted online last year, and GrubHub’s current valuation implies that this number will only increase to 25% by 2025. In comparison, the article went on to say “[t]he online hotel and flight reservation space [only] has a 30% to 60% market penetration [15].” So, with the leading competitor only taking away 4% of the market CheckReady™ can expect a positive future outlook for its restaurants take-out/delivery business as well as the online ordering segment as a whole. As one of its core competencies, CheckReady™ is a review and ratings source for diners who want to eat out at the best restaurants with the best servers and attend bars with the best bartenders. This means we’ll be competing directly with online review giants such as Yelp®, Zagat®, and Zomato®. We’re also competing head to head with online search engines such as Google®, Bing®, and Yahoo!® as customers turn to our app to show them who the best restaurants, bars, servers, and bartenders are in their area. Yelp boasts it “had a monthly average of 142 million unique visitors in Q1 2015*. By the end of Q1 2015 Yelpers had written more than 77 million rich, local reviews, making Yelp the leading local guide for real word-of-mouth on everything from boutiques and mechanics to restaurants and dentists. Approximately 79 million unique visitors visited Yelp® via their mobile device on a monthly average basis during Q1 2015 [16].” At 19% of its total reviews, our leading competitor Yelp generated 14,630,000 restaurant reviews per month last quarter [17]. If we assume that every person who booked a reservation wrote a review and we assume each restaurant does the 458.75 OpenTable® average of reservations monthly, we can derive that these numbers can be created by 31,891 restaurants—an eerily similar number to OpenTable®. With that being said, the online review and search markets potential outlook is good for CheckReady™. Trends: “Driven by an improving economy, restaurant industry sales are expected to hit a record high of $709.2 billion in 2015. Although this will represent the sixth consecutive year of real growth in restaurant sales, the gains remain below what would be expected during a normal post-recession period due to a range of challenges. However, the restaurant industry will remain the nation’s second-largest private sector employer with a workforce of 14 million [18].” Furthermore, restaurants are adopting new tech-

nologies such as Restaurant Reservation and Guest Management Systems and Online Ordering. We’re seeing this shift because of the cost savings and customer convenience these new technologies are implementing. We’ve also seen a trend in some of the bigger companies such as Yelp and Google who have started buying complimentary business to their own creating an all-around portfolio of apps that pertain to restaurants. For example, Yelp® bough SeatMe® and Eat24® so anyone who uses Yelp can now book a reservation or order an online delivery as they review restaurants. A huge weakness is that they’re still operating in a world where 50% of their business comes from online and haven’t consolidated their apps into one streamlined and efficient app. Until they do, we have the upper hand. Regardless, we still have the “Green Light.” Product Life Cycle Stage: Since app technology is relatively new in the restaurant industry we’re still in between the early users and early majority users phase. The early pioneer users have already introduced our product in various forms to the market and are taking hold; however, no single competitor has more than 10% of the market in their respective segments. Competitors are slow to create an overall solution for the restaurant industry and are using a very segmented approach with multiple apps that do single specific functions. When CheckReady™ is introduced to the market we’ll create a very different playing field and through our all-in-one approach bring the market as a whole fully into the early majority users phase. Here we’ll see 2 or three big companies or alliances controlling the market in terms of differentiation and cost leadership. Once we solidify our place in the market and enter into the late majority users phase as one of the largest competitors in terms of aggregated sales and market share.

1.10. Market Share: With 90% of each conceivable market open for the taking and no single competitor with a “Green Light” function we believe CheckReady™ can become a leading competitor within a 10-year period. CheckReady™ could potentially have a hand in every reservation booked in the U.S. if we can partner with OpenTable-like competitors. Although Online Ordering will remain a struggle we can assume a 50% market share in 10 years as well. Although companies such as GrubHub® have a sizeable lead especially in major U.S. cities our all-in-one functionality will make their apps obsolete in a matter of years. Positive industry growth as well as a conversion of users from the total feasible market will propel CheckReady™ into a household name within a 5-year period. After it becomes a household name we’ll hit critical mass and see exponential growth for the next 5 years effectively capturing the market.

1.11. Financial Features: CheckReady™ is a subscription based iOS®/Android® app that charges partners and affiliates transactional fees based on guest referrals. We will largely earn a profit by directly charging restaurants subscription fees for our services; the subscription fee is designed to supply a continuous stream of revenue to our fixed operating expenses such as web hosting, IT security, salaries, and rent. We at CheckReady™ decided to go with a subscription fee based business because we understand the volatility of the restaurant industry and would like to produce a stable revenue stream. With a subscription fee restaurants know what they’re paying every month and we know what we’re earning. We want to offer our services at a cost leadership perspective. With that being said, we’ve set our prices at the low end of the spectrum in comparison to our competitors. OpenTable® charges $0.25 per guest when they book through the restaurants website and $1.00 per guest when they book through their site or mobile app [19]. GrubHub®, in comparison, charges at a minimum 5% for a take-out/delivery and an average of around 13.5% [20]. Subscriptions for OpenTable® are $199.00 [21] and subscriptions for SeatMe® are $99.00 [22]. HotSchedules® charges $75.00-$200.00 depending on the number of employees per restaurant [23]. We at CheckReady™ plan to follow a similar pricing strategy.

restaurant chains totaling 500 restaurants we would be generating a gross income of $658,125.00 annually. We plan on spending at least as much on the initial marketing campaign as we did on the programming. Yes, the app functionality is key to our success but the app generates nothing unless restaurants, employees, and guests are using it. Therefore at least $500,000.00 will be spent on the initial marketing/sale of the app to the public as well as restaurants, servers, and bartenders. We would like to guarantee access to an additional $2,500,000 for growth and expansion; however, we plan on reinvesting capital rather than rely on outside sources. Initial start-up costs (year 1): • $500,000.00 app design and development. • $500,000.00 marketing and travel expenses/sales costs. • $2,500,000.00 reserve fund for growth and expansion efforts.

1.13. Sales Potential: We believe we can achieve 100% of full-service restaurants (our total feasible market) in the U.S. within 10 years (200,000,000 restaurants). Below are three different growth scenario options: exponential, linear, and variable. The exponential growth model starts low at 500 restaurants during year 1 and skyrockets to 256,000 restaurants during year 10. This model exemplifies explosive growth in terms of building a user base from scratch. The linear growth model starts at 10,000 restaurants during the first year and increases by 10,000 each year after that capping off at 100,000 during year 10. This would mean we got 10% of HotSchedules client base during year one and continued to add 10% annually. The variable growth model shows slow initial growth from 2,000 restaurants at year one to an explosive growth at year 5 and a capping off at 200,000 restaurants at year 10. The variable growth model follows an “s-curve” and is what we expect the apps actual growth to look like. Below are some examples of expected revenue streams based on the above growth models as well as the varying subscription fees:

CheckReady™ will offer its services for a low flat rate of $20.00-$50.00 per month depending on how many employees a restaurant has. If a restaurant has 10 employees the cost will be more towards the $20.00 range; at 100 employees the cost will be more towards $50.00. We will position ourselves in the HotSchedules® family of apps bringing HotSchedules® out of the back end of restaurants and into the front end. We will negotiate to charge partners a percentage of their transactional-based fees when we refer business to them. For example: we plan to charge OpenTable®, Fandango®, and Uber® $0.25 per referral. We plan to charge 1% for Online Order and Payment as well. We want to offer Local Based Advertising through out app for 10 cents per click.

1.12. Financial Requirements: CheckReady™ will require a capital injection of $1,000,000.00 for two main purposes: for building the app itself and for marketing. In order to devote full time to the venture Andrew Atalla will ask for a one-year salary of $50,000.00. After the app launches his salary will be reduced to $1.00 and he will be paid based on company performance. App design and development should last no longer than 6 months. It should take no longer than an additional 3-6 months to market to the public and land as many restaurants as possible before launching the app onto the market. If we could launch with 2-3 big

Growth in relation to HotSchedules user base:

1.14. Profitability:

as well as outside vendors such as Apple®, Google®, Visa®, and American Express®. If we assume each check average is $15.00 on Online Orders and $25.00 on in-house payments we can expect to earn an additional $1.50-$2.50 per transaction. Those numbers could add some serious profitability to the app and are where we want to add the most value. In the long run these revenue streams are going to remain the most stable as well. People have to order their food and they have to pay for it.

Since CheckReady™ is a subscription-based app with addition revenue streams generated from multiple sources we broke down the financial calculations accordingly. Internal cost drivers such as overhead expenses and personnel numbers will be largely based upon subscription fee. Revenue generated from online ordering and payments as well as from referral fees and local based advertising will generate additional revenue and further CheckReady’s™ growth and expansion.

Local Based Advertising will cost companies such as restaurants who want to advertise through our app directly onto guests news feeds through native ads. These ads will cost 10 cents per impression and $1.00 per click. If we can generate anywhere from 100-1,000 impressions per month and 10-100 clicks per month from each restaurant we could add a large increase to our expected revenue by $11,562,500.00 each. With all the above revenue streams CheckReady™ could potentially expect a 991.92% increase over its base subscription. We would bill partners in one lump sum rather than bill restaurants individually. That way, we don’t look like the bad guy. Technically we’re taking a cut from what the restaurants already pay these companies for their services. All the clients see is that we charge a low flat monthly rate of $20-$50.

The expected revenue from 1 restaurant in each of the 4 scenarios: • 1-10 employees will generate $240.00/year. • 11-25 employees will generate $360.00/year. • 26-50 employees will generate $480.00/year. • 51-100 employees will generate $600.00/year.

The following spreadsheets show the breakdown of expected revenue per month per fee:

The expected revenue from 1-250,000 restaurants in each of the 4 scenarios: With the proper marketing and brand development CheckReady™ can achieve 100% of our conceivable U.S. market of 200,000 full-service restaurants within a 10-year period. If we can double each year and expand globally we would hit the 250,000-restaurant mark within 10 years. If we only added an average of 10,000 restaurants annually we would hit 100,000 restaurants within 10 years. We expect to have slow growth in the first 5 years with exponential growth exploding and taking us to 200,000 restaurants within 10 years. Since we know that OpenTable® charges $1.00 per each guest who books a reservation through their website or mobile app we can expect to charge 25% for a referral. With Fandango®, who charges on average a $1.00-$1.35 convenience fee per ticket, we expect to charge the same 25% referral fee [24]. When it comes to Uber® we can employ the same 25% referral fee to be derived from their base fee. Uber’s® base fee ranges anywhere from $3.00 in New York City [25] to $2.00 in Washington D.C. [26] to $1.25 in Richmond [27]. We at CheckReady™ can assume an average of $0.25 off each Uber® referral if we charge the same 25% as we charge OpenTable® and Fandango®. Online ordering and payment calculations are much more tricky to derive and are based upon more theoretical numbers. We know that GrubHub® charges 5% of restaurants Online Orders and on average 13.5%. Working with the base of 5% we at CheckReady™ can expect to charge 1% for online orders processed through our app. We can charge the same 1% for in-house payments and work with existing point of sale systems

CheckReady™, even with a modest price point in comparison to some top competitors, will prove to be an extremely lucrative app given we universalize it across every restaurant as the standard in customer satisfaction and dining experience. We feel it’s more important to spread our app to every restaurant, server, bartender, and guest rather than make a high profit initially. Any investment in the front end will pay dividends on the back end. As illustrated above the most lucrative features of the app will be the online ordering and payment features because they allow CheckReady™ to tap into the direct revenue streams of the restaurants and bars. Local based advertising remains highly lucrative but where advertising can add an extra $11,562,500.00 per month online ordering alone could add an extra $17,343,750.00. Revenue streams from referrals to companies like OpenTable®, Fandango®, and Uber® could add an extra $2,890,625.00 each per month making those opportunities attractive as well. With all the above revenue streams CheckReady™ could potentially be looking at $86,796,875.00 per month at a median income with 250,000 restaurants. That would make CheckReady™ a $1,041,562,500.00 company annually. In a period of ten years we expect to hit maximum potential in the U.S. and will look to expand our operations overseas. In 20 years there’s no reason why CheckReady™ can’t be a 10 billion dollar company. Combined income from ALL revenue streams:

1.15. SWOT Analysis: Strengths: CheckReady’s™ strengths are derived directly from our core competencies and our resource base. Our All-In-One Functionality will put us a step above the competition who are slow to integrate separate technologies into a fluid easy to use app. Our Integration with other systems such as OpenTable’s® Restaurant Reservation and Guest Management System and GrubHub Inc.’s Online Ordering System make CheckReady™ fully compatible with other systems while still maintaining its Stand-Alone Capabilities via features such as our “Small Restaurant Reservation Booking System.” Cost Leadership will propel us into a majority market share among small businesses and strategic partnerships will enable us to reach more users faster. Our resource base is derived primarily from our partnerships in particularly from HotSchedules® who will provide seed capital and allow us to leverage their credibility and existing user base. Our network of restaurants, servers/bartenders, and guests will prove our most valuable resource in the long run and in the short term our intellectual property rights of the “Green Light” feature as well as other features will enable rapid growth without imitation. Weaknesses:

Weaknesses could include a slow growing user base as well as quick adaptation of our core competencies by our competitors. Likewise, any failed partnerships could set us back because we would either have to partner with the next best company or create the technology ourselves. Some partnership will be important for us to establish but may incur additional partnerships that aren’t as desirable. For example a partnership with Uber® who already does business with Velocity® and Cover®—two payment style apps that let you accrue rewards and split the tab with friends. In order to land Uber® we may have to partner with Velocity® and Cover® as well which would significantly stunt our abilities to move into the upper tier of the market where they have a stronghold. Any partnerships that would direct users away from our app in critical points such as reservations and payment could stunt our growth and take away from potential revenue.

1.16. Competitive Strength Grid:

Opportunities: The opportunities in the market place are great and the threat of entry low. Therefore CheckReady™ sees huge potential to capture 229,685 full-service restaurants as well as 65,116 taverns, bars, and night clubs [28]. We also stand to take a cut of the 70 billion dollars worth of annual take-out/delivery orders and the 14,630,000 annual restaurant reviews that Yelp sees. With no one company in their respective segments holding any more that 10% market share the field is wide open for CheckReady™ to take advantage of. Threats: Yelp will be the biggest threat to our existence and it is vital we establish strategic partnerships with companies such as OpenTable® and GrubHub® in order to counter Yelp’s position in the market. We at CheckReady™ see the battle for the restaurant industry playing out a lot like the battle for the online movie ticketing where after a decade of fierce competition Fandango® proved the victor with 70% market share over MovieTickets® [29]. If we can break 50% market share while leading the next closest competitor by 10% we should be able to gain and maintain a competitive advantage much like Google® has over the search engine competition.