Generation NEXT Sells 300,000th Cup of Frozen Yogurt, Discusses Improving Performance Indicators for Reis & Irvy’s Kiosk
Sales per kiosk improves month over month during February and March as improvements are made on site-selection and promotion/marketing
SAN DIEGO, CA, April 11, 2019 // GLOBE NEWSWIRE // - via NEWMEDIAWIRE - Generation NEXT Franchise Brands, Inc. (OTCQB: VEND) announced today that its flagship subsidiary and premium, robotic soft serve franchise, Reis & Irvy’s, sold its 300,000th cup of frozen yogurt on Thursday, April 4th.
In light of this most recent milestone, the company shared some insights into its recent and ongoing efforts to improve key performance indicators (KPIs) for the Reis & Irvy’s kiosk network, particularly Sales per Kiosk, or ‘SPK’ as referred to by the Company, as well as Kiosk Uptime and Availability, or ‘KUA’.
“Our first nine months of operating Reis & Irvy’s robots, from July last year through March this year, have been a wild ride but our company and our ecosystem have been constantly learning along the way,” said Nick Yates, CEO of Generation Next. “I have talked extensively about the improvements made to our technology from the initial alpha units to the current mass production kiosks. During the same time, we have been getting smarter about how to identify the best locations and develop our owner-operators as well.”
In January, just 19 Reis & Irvy’s kiosks operating in the United States completed the entire month (defined as 7 days per week for 4 weeks, or 28 consecutive days) without an issue that affected Uptime or Availability (KUA). By the end of March, that number had more than doubled to 48 kiosks, the company reports. It is also important to note that many locations secured by the company only operate 5-days per week.
The company said that improvements in the crucial KUA metric are the result of hardware upgrades and retrofits of earlier alpha units; newly manufactured robots benefiting from improved engineering and manufacturing changes; as well as recent firmware and software updates that have been released across the Reis & Irvy’s kiosk network.
In addition to uptime and availability (KUA), the Company also continuously monitors Sales Per Kiosk (SPK) and executes initiatives to improve this key metric. Among the same group of locations operating for 28 consecutive days, SPK increased by 13.5% percent, from $2,606 in January to $2,960 in March.
The Company currently does not track individual cup sales but will begin doing so after a software upgrade is implemented later this fiscal year. Until then, the Company monitors transactions per day. A transaction may contain one or more cups of frozen yogurt. This table details transactions per kiosk for the top locations.
|Group||March||January & February|
|Top 25||29.6 Transactions Per Day
$5.77 Average Transaction
|21.6 Transactions Per Day
$5.13 Average Transaction
|Top 50||23.2 Transactions Per Day
$5.25 Average Transaction
|18.0 Transactions Per Day
$4.93 Average Transaction
March results for the Top 25 and Top 50 robots are 54% and 45% higher, respectively, than the January and February figures. “This highlights the progress the Company is striving to make in the major areas that drive yogurt sales: location quality, uptime, and marketing,” Yates said. “The Company will continue to identify traits and trends from top performing locations to drive SPK higher across the growing Reis & Irvy’s kiosk network.”
Yates also detailed how the company is improving SPK by being more selective with the locations chosen to receive a Reis & Irvy’s kiosk. “In the beginning, we were trying every location imaginable to see what would work. Nobody had ever done this,” Yates said.
Yates said that the company’s franchisees and their feedback have been instrumental in helping the company learn how to identify winning locations. “Lessons learned always come with a price,” Yates said. “But the lessons we learned have proven to be extremely valuable.” Yates provided the following examples:
- Not all high foot traffic sites are the same - single building corporate, distribution, or manufacturing sites with multiple shifts perform better than campuses with a dispersed population in multiple, smaller buildings and one shift.
- Malls can be successful despite the Amazon effect - shopping centers that have replaced traditional retailers with restaurants and entertainment options are proving to be a successful category for the Company.
- Occupancy is a better measure than bed count - hospitals love Reis & Irvy’s for a variety of reasons and the feeling is mutual, but a high bed count hasn’t always translated into the best results.
- Think outside the traditional location box - not originally on the Company’s radar, two locations groups have emerged as strong candidates to get more allocation of the future production - sports facilities and entertainment centers. The Company further noted that facilities with multiple sports and entertainment options including parties generate a much higher volume.
The company has also begun developing a program it calls “Steps to Success.” The emphasis of this effort is to share and implement the best practices learned from the early operation of the machines across the entire network. Steps to Success includes onboarding, location preparation, site marketing, promotional tools, operational training, and after-install support all designed to increase SPK.
“The metrics are showing that we are headed in the right direction after months of experimentation. Location count is growing, but more importantly, the quality of our locations and how we operate the kiosks are improving because of what we have learned. Steps to Success layered on top of our new location criteria will continue to improve our KPIs, particularly Sales Per Kiosk," Yates concluded.
Generation NEXT Website: www.gennextbrands.com
About Generation NEXT Franchise Brands, Inc.
Generation NEXT Franchise Brands, Inc., based in San Diego, California, is a publicly traded company on the OTC Markets trading under the symbol OTCBB: VEND. Generation NEXT Franchise Brands, Inc. is parent company to Reis and Irvy’s Inc, 19 Degrees Corporate Service LLC and Print Mates. www.gennextbrands.com
About Reis & Irvy’s, Inc.
Reis & Irvy’s, Inc. is a subsidiary franchise concept of Generation NEXT Franchise Brands, Inc. (VEND). Launched in early 2016, the revolutionary Reis & Irvy’s Vending Robot serves seven different flavors of frozen yogurt, ice cream, sorbets and gelatos, a choice of up to six custom toppings and to customers within 60 seconds or less at the point of sale. The unique franchise opportunity has since established itself as a high-demand product and currently showcases a franchise network both domestically as well as internationally. www.reisandirvys.com
This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. No Reis & Irvy’s franchises will be sold to any resident of any state until the offering has been exempted from the requirements of, or duly registered in and declared effective by, such state and the required FDD (if any) has been delivered to the prospective franchisee before the sale in compliance with applicable law. Currently, the following states in the United States regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you reside in one of these states, or even if you reside elsewhere, you may have certain rights under applicable franchise laws or regulations.
Cautionary note on forward-looking statements:
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others, statements concerning our future financial performance, including statements regarding: our ability to generate revenue and recognize deferred revenue; our ability to timely launch delivery and installation of our frozen yogurt robots; and our ability to grow our franchising and licensing divisions and launch our corporate-owned and direct sales platforms. The Company bases these forward-looking statements on its current expectations, estimates and projections about future events and the industry in which it operates using information currently available to it. Actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Forward-looking statements are identified by words such as “believe,” “anticipate,” “propose,” “expect,” “intend,” “plan,” “will,” “may,” “estimates,” variations of such words and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Factors that could cause actual results to differ from those implied by the forward-looking statements contained in this press release are set forth in our filings with the Securities and Exchange Commission (SEC), including our most recent Annual Report on Form 10-K for the year ended June 30, 2018, our Quarterly Reports, and our Current Reports on Form 8-K. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated and the Company is under no obligation (and expressly disclaims any such obligation) to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
SOURCE Generation NEXT Franchise Brands, Inc.