room service for inspired days
TRANSCRIPT
ROOM SERVICE FOR INSPIRED DAYS
www.breakboxdelivery.com
The Room Service Problem.
Extraordinarily expensive, yet runs at a loss for most hotels
Lack of hotel-comparable services for high-end AirBnB guests and individuals
1
NYC’s Hilton with 2,000 rooms cut room service in 2013, eliminating 55 jobs, losing just 1.2% revenue
“There are so many hotels to choose from, if everyone is offering room service, I don’t know why I would pay the same rate with no service.” (NYTimes, 2013)
Why is the industry ready for disruption?
2
Turn-key services for hotels have in-built scale advantages that are not being capitalized upon
Hotels save money and
add services by
outsourcing
Guests enjoy high quality hospitality
Services can easily scale
to cover markets that
have overlapping
needs
Overlapping Needs for Large Market Segments.
3
Hotels$1-2Bn1
Special Occasions $200mm2
Premium AirBnB
$100mm3
Premium Food ServiceConciergeAmenities
On-Demand
1. Assumes 0.5-1% of 51,214 U.S. hotel revenues, totaling $163B in 2013 according to Smith Travel Research2. Uses survey data for urban professionals – 2.5 orders per month, $23.0 average willingness to pay, 230k households3. Uses AirBnB 2013 economic impact data for NYC, scaled for top 10 U.S. cities – 400,00 visitors, spending $880 per day,
assuming 10% share of spend on Breakbox-like products and services
Our Answer.
4
A seamless hotel experience, wherever you are
Restaurant-quality food service and beverages
Convenience
Core
Complementary
Technology
Premium amenities and services
On-demand deliveries
Convenient mobileCheck-in, ordering and APIs
Prototype.
5
APIs to handle easy connectivity with
Hotel back-ends and AirBnB bookings
Mobile Sales
Channel for
Individual Customer
s
Market Research Indicates Strong Appetite.
75%Say room service enhances guest experience
87%Say they would order to their homes more than once a month
69%Say they would order room service with their significant other.
45% when I'm not feeling well, 39% as a gift for someone else.
60%Say they would like hotel-stylebath products and wine/champagne.
$23
Average amount ready to pay forhigh-end for breakfast and brunch-centered room service
45% city guides / concierge services
200+
Customers signed up forPhiladelphia Beta test
1. Survey includes over 200 responders from major global citites, with an average age bracket of 25-30 and income of $100k+.
$9.30 willingness to pay for a quick to-go breakfast
60 customers served in two weeks and 30% repeat customers within two weeks.
Average of 2.5x per month
6
Progress.
7
We are working towards a March 1st soft-launch• UBER to handle deliveries
• Partnership with Balthazar
• Top-chef talent and menu development
• Leveraged shared economy to source East Village space
• Initiated relationships within hospitality industry
• Web-based ordering platform for now
• Fundraising - $20-50k founders capital
• Considering friends and family raise within 1 month
About us.
8
Nachiketa Rao
oWharton MBA / Penn MAo Swarthmore College BAoUniversity of Oxford
Morgane Le Bleis
o Sciences Po MAo Sciences Po BAoUniversity of Pennsylvania
Appendix
Sample Menu.
9
Top Chef Talent.
10
Competitive Landscape.
11
Low time investment
High-endLow End
CaviarBreakbox
High-end Restaurants
Sprig
Munchery
DoordashSpoonRocket
SeamlessGrubHub
PlatedBlueApronHelloFresh
Take-out
Postmates
Very high-end, convenient service is untapped
High time investment
Local restaurant
Starbucks
Successfully-funded Food Delivery Start-ups
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Curated dinners from well-known chefs, which are re-heated for 10-12 minutes Target customer is someone too busy to cook, but wants to enjoy a gourmet dinner at home with on-
demand delivery Social impact focus: For every meal that is ordered, one is donated, and everything is eco-friendly, and
carbon-neutral Recently raised $28mm in Series B from Sherpa Ventures (April 2014), raised $4mm Series A, and $0.7mm
seed funding Investors include Sherpa Ventures, Menlo Ventures, Anthos Capital, e.ventures
Munchery
Order meals online, delivered in under 20 minutes in the SF / Bay Area using cars with custom-built containers
Target customer is busy and wants a reasonably good meal with fresh ingredients, very quickly For every meal purchased, one is donated to a child in need Raised $10mm from Foundation Capital and General Catalyst (May 2014)
SpoonRocket
Caviar Access the cities’ best restaurants at home- customized meals Delivery fee: $9.99 with its own delivery people Highly rated restaurants Restaurants set their own prices New stream of revenue for restaurants Raised $2M from Andreessen Horowitz and other investors; $13M (April 2014) from Tiger Global’s venture
fund
DoorDash More of a logistics company than a food company focused on providing delivery services on behalf of small
scale restaurants in non-urban locales Charges $6 fee and maintains own fleet of delivery drivers Started by Stanford students, with tech-oriented backgrounds Raised $2.4mm in seed funding from Khosla Ventures, Charles River Ventures, SV Angel and others (Sept
2013) Raised $17.3mm in Series A funding from Sequoia Capital (June 2014)