Student Name: Paritosh Panchal

Step 1

Reference Product Identify your reference product (next best substitute) Assumed factors: # of Tables # of customers Annual Revenue # of Main Menu # of Drinks/wine Menu Price /Main Menu Price /Drink Menu Total $/Menu Total $$ Revenue / day (312 days/yr) Revenue/hr (7 hrs) Sources of Differentiation List of Benefits

$ 10 24 $75,000 24 24 $25 $20 $45 $1,080 $240 $35

45

(I)

Step 2

Qty

Translated into Customer Terms 12 High set up ( fixed cost) 2 Set Up Cost /Fix Cost Opportunity for upsale (assumed 5 % of rev) Opportunity for upsale, easiness in accessing menu Promote high margin recipe-> more profit Free Marketing-> more customers-> more revenue easy to clean -> less time at table-> faster service-> more customers/time faster order-> faster serve-> faster turnaround-> more customers>more Rev more customers/physical space-> more revenue/day faster order-> faster serve-> faster turnaround-> more customers>more Rev Less # of employees-> reduced variable cost-> more profit less waste-> reduced costs -> increased margin + higher customer satisfactiom increased revenue/table Happy Customers-> loyal customers-> frequent visit less time spent learning-> easy to substitue new employees -> withsend higher emplyoee turnaround no reprinting/modification of menu, instant control on offering based on raw material available Cost savings for modifying/revising/updating menu quick data analytics to see customer behaviors, most ordered, least ordered, (by day/time) etc-> better manage inventory carrying cost

Algorithm/Transfer Function # of ipad (12x325) vs # of menu ( 24x 45) # of damage/yr (2) x cost of ipad ($325) Revenue x 5 % Revenue x 5 % (already included) 10 % more margin x Revenue 2 % more rev/yr with increased social marketting 0.5 % improved thruput ( 0.005x rev) 1 % improved thruput ( .01x rev) Revenue x 3 % Revenue x 5 % (already included) increased margin due to reduced cost (2 %) increased margin due to reduced cost (1 %) 1 % more rev/table 1 % increased customers/yr increased margin due to reduced cost (1 %) Clean Menu ( no out of stock) # of menu(24)x # of change/yr (2) x price/menu($45)

Quantification $ 325 $ $ $ $ $ $ $ 2,820 650 3,750 7,500 1,500 375 750 2,250

Cost Cost Rev Rev Rev Rev REv Rev Rev Rev Cost Cost Rev Rev Cost Cost Cost

Costly Hardware compared to paper menu Cost of Damage Vivid/HiRes Pictures Interactive Menu Promotion Highlights Social Networking Opportunity Tough and Go (easy to clean up) Search for specific dishes Reduced Wait Time (for seating) Reduced Wait Time ( @ table) Reduced Manpower (Efficiency) Less Mistakes Less lost orders Enhanced Customer Experience Simplified Training for Waiters Instant Change to add/remove offering No Cost of Changing/modification

$ $ $ $ $ $ $

1,500 750 750 750 750 2,160

Cost/Rev Rev Rev

Data Analytics Payment integration w POS Feedback Opporunity

increased margin due to reduced cost (1 %)

$ $ $

750 375 -

faster service -> more customers/day-> more revenue/day 0.5 % improved thruput ( 0.005x rev) knowings/likings of customers/apply suggestions improve service> increase customer satisfaction

Total Economic Value based on differentiation over paper menu Total Economic Value per eMenu (iPAD)

$ $

27,380 2,282

(II)

Combined Total Economic Value (I+II)

2,327

( I+II)