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If I were looking to invest, I wouldn't give a crap about reliability, cleaning, and maintenance. I'd want to see his business plan, and how he thinks he's goin
by greedo 8y ago
If I were looking to invest, I wouldn't give a crap about reliability, cleaning, and maintenance. I'd want to see his business plan, and how he thinks he's going to make money when the highest amount of revenue this thing can produce is $72/hour, when it runs flawlessly.
- jt3 8y agoYou can have more than one running at the same time?
- greedo 8y agoThen you have 2x the capital costs, plus less room for seating etc.
- dmitriy_ko 8y agoStack them vertically to save space?
- throwaway76543 8y agoThere is more than one restaurant in the world.
- repsilat 8y agoYeah, "America is a big place" covers a lot of ground for this company. I'm not sure that gives them much, though -- restaurants are pretty capital-intensive, and on those economics the marginal savings of not having burger-flippers doesn't add up to a lot of advantage. Maybe it would be better to sell your machines, to become "the Coca-Cola of burgers" rather than another McDonald's. Established players don't want to develop these machines in-house, but if you provide clearly better value they can and they will catch up. They'd probably rather buy the technology, though.
- maxerickson 8y agoLooks to me that you can have more than 1 burger going at once. Outside of places like San Francisco the few dozen square feet per machine isn't going to be a big deal.
- dbcooper 8y ago5 minutes residence time in the machine per burger, not one burger per 5 minutes output.
- imtringued 8y ago$72/hour * 160hours/month * 12months/year = $138240/year On top of that it can produce multiple burgers at the same. I assume the revenue per machine is potentially 5x of that (or more) which is $691200 per year. Making money seems like the lowest priority item on the very long list of potential problems with this machine. Cleaning and restocking? Those are still unsolved and might even be impossible. Making more money merely requires "revision 2: now 30% more efficient!" or just building more than one machine.
- greedo 8y agoIf your restaurant grosses $138K/year, you're out of business pretty fast.
- radix07 8y agoTrue, but you don't have the same expenses. Hopefully less direct human labor hours, able to run 24x7 at times when human costs could be higher, way less real estate and more viable locations than a restaurant, as well as just lower utility bills. Of course there are other expenses such as maintenance, deployment, development and upgrades. But those are the things this company is likely trying to optimize.