#wearesquared Module 2 team 29,

1. Q-LESS
DIGITAL PROPOSAL
M2 #29: THE ECLECTIC MIX

2. Company Purpose
Revolutionising the concept of ‘coffee
on-the- go’ for both retailers and
consumers.

3. Problem & Solution
 Long queues at coffee outlets during
peak times.
 Lost revenue for retailers whose potential
customers don’t have time to buy.
 A purchase process which takes too
long.
 A real-time, cashless geolocation
triggered ordering system.
 Consumers save precious minutes on
their journey.
 Retailers fully capitalise on their unit’s
revenue potential.
The Problem Our Solution

4. The Product
An application using geolocation
technology and open source transport data
to send an automatic order to the retailer as
soon as the customer comes within a certain
distance/time of the retail unit.
With Q-LESS, you can queue less!

5. Why Now?
Why now?
Right now:
An average of 30 coffee retailers are opening in
the UK each week
In the future:
Research suggests that by 2025 the UK coffee shop
market will exceed 30,000 outlets and £15 billion
turnover
Every single day:
Over 2 million takeaway cups of coffee are
purchased in London alone
Elsewhere:
Competitors are explore ordering technology, but with
limited success
Review on Apple’s
App Store for
Starbucks’ app
http://www.hospitalityandcateringnews.com/2015/12/booming-uk-coffee-shop-market-heads-30000-outlets/
: http://www.britishcoffeeassociation.org/about_coffee/coffee_facts/
http://metro.co.uk/2014/05/07/want-to-know-more-about-london-25-need-to-know-facts-told-in-numbers-4719600/

6. Competition
Starbucks app allows
customers can pre-order
and pre-purchase coffee,
then skip the queue and
collect at the Starbucks
most convenient to them.
Limited to Starbucks &
high cost
Traditional way of
purchasing coffee by
queueing up and waiting
without utilising an app.
Customers have to queue
and can’t pre-pay. High
cost.
Low cost disposable
coffee cups from Azera.
Take-away coffee is pre-
paid and easy to use.
Customers have to bring
from home and purchase
in advance.
Coffee that is brought
from a customer’s house,
removing the need to
purchase coffee on the go.
Customers have to bring
from home and can’t
throw away the cup.
Coffee purchased from
by vending machine or
coffee machine located
inside a retail outlet.
High cost, potentially
low quality and difficult
to find.

7. Competitive Environment
High Threat of new Entrants
Threat of Substitute Products is High
(There’s several alternatives on the market)
Low Bargaining Power of Buyers
(Coffee Drinkers)
High Bargaining Power of Buyers
(Suppliers)
Intensity of Competition is High

8. Market size
£80bn £7.9bn £237m
Total Available Market –
Coffees drunk worldwide
Service Available Market
– Market size of the UK
Service Obtainable
Market – Independent
Coffee shops in the UK
http://www.wevio.com/research-and-analysis-articles/global-coffee-industry-facts-statistics-of-2014-2015/
http://www.hospitalityandcateringnews.com/2015/12/booming-uk-coffee-shop-market-heads-30000-outlets/

9. Business model
• Retailers
pay a yearly
membership fee
to join the
network
Joining fee
• Q-LESS
charges 10% of
the value of
successful orders
from retailer.
Commission
• Retailers
have the choice
to be listed and
advertise them in
the app.
Top
Ranking/ads
The App is free of charge for end users. Our revenue is mainly generated for the service of the retailers

10. Revenue Stream
a 10% commission
We take a 10% commission
• Year 1 = £2.7m
• Year 2 = £10.9m
• Year 3 = £31.9m
And a yearly subscription fee from outlets
• Year 1 = 1,000 shops
• Year 2 = 3,000 shops
• Year 3 = 7,000 shops (34% of UK coffee retailers)
Plus advertising packages
• Average PPC: £2
• £2k minimum spend
• ROI: 25%

11. Financials
Funding
Annual revenue Yearly ROI breakdown
Funding £500,000
Partners*2 £200,000
A loan from bank £300,000
Costs
Annual revenue Amount
Year 1 £3.4m
Year 2 £13m
Year 3 £36.4m
Annual cost Amount
Year 1 £1.3m
Year 2 £3.5m
Year 3 £9m
Annual ROI Amount
Year 1 £2m
Year 2 £9.4m
Year 3 £27.4m

12. Scalability and growth
Year One
Total Active Users - 30k
Shops - 1000
Total Revenue - £3.4m
Year Two
Total Active Users - 120k
Total Shops - 3000
Revenue - £13m
Year Three
Total Active Users - 350k
Total Shops - 7000
Total Revenue - £36m

13. Sales, Distribution and Partnership
 Print ads
 Leaflets at stations
 Online banners on train
timetable apps
 Social media advertising
 Testimonial campaigns
 Coffee roasters
 Equipment rentals
 Annual Barista competition
 Coffee Bloggers outreach
 Email campaigns
 Sales team
Drive awareness and engagement Drive awareness and acquisition

14. Q-LESS Team
Anne-Luce
Sales & Distributor
Carl
Business Developer
Crissie
Product Developer
Josh
Competitive whizz kid
Lizzie
Commercial developer
Selena
Financial Maestro
Nina
Marketing Guru