ThirdSpace(previously JavaSeat…and Table Reservations)

Team 11Ashleigh Ranney

Kamal GreyScott Malish

Jeff Golde3 Coffee Shop Owners

40 Consumers10 Coffee Shop Managers

What we thought on Day 1

Hypothesis Solution

Consumers are frustrated with uncertainty/inability in securing a seat/table within coffee shops when in need

Website/mobile app that allows consumers to reserve seats within coffee shops in advance.

Coffee shops would be interested in solutions that can better monetize “squatters”

Share revenue from reservation system with coffee shop.

Cost Structure

Variable:*SG&A*Web hosting*Mobile app development

Fixed:*Initial site/app development

Revenue Streams*Subscription (consumer and/or coffee shops)*Rev share (% of transaction volume)*Order and/or reservation fees*Advertising*White label/managed service*Small fee from coffee shop if customer makes a reservation (5-10 min find an open seat model)

Key Partners

*Coffee Shops*Coffee drinker (shop customers)*Businesses

*Yelp (location of shops, built in feedback to help populate our product)

Key Resources

*Human (design, technology, customer acquisition expertise)*Business relationships*Financing

Value Propositions

Coffee shop:*Better monetization of utilized capacity*Better monetization of excess capacity*Exposure/discovery*Direct access/connection to consumer

Consumer:*Guaranteed seating*Time-savings (reduced wait times in line, no searching multiple shops for seating)*Easy payment (especially for business meetings)

Customer Segments

Coffee shops:*Coffee + Food*Coffee only

Consumers*Coffee aficionados*Casual coffee drinkers*Students*Freelancers*Full-time professionals

Pain Point Summary: Wasted Time, Lack of Seating at Best Shops

Key Activities

*Two-sided customer acquisition (coffee shops and consumers)*Feedback loop*Channel management*Segment expertise*Marketing (branding, PR)

Customer Relationships

*Relationship manager (coffee shops)*Word of mouth*Web/app discovery*In-store promotion

ChannelsPrimary:*Mobile application*Online/web

Secondary:*Industry coffee Magazines that shops might read*Social media*Universities*Coffee shops

What we learned on Day 2Hypothesis Reality

Consumers are frustrated with uncertainty/inability in securing a seat/table within coffee shops when in need

Unknown

Coffee shops would be interested in solutions that can better monetize “squatters”

Coffee shops generate the lion’s share of their profit from to-go/walk-in only, so do not worry about revenue opportunity cost from squatters.

Day 2 Pivot

Hypothesis Solution

Consumers are frustrated with uncertainty/inability in securing a seat/table within coffee shops when in need.

Create a marketplace for transacting/securing coffee shop tables/seats in real-time.

Consumers are willing to pay for ability to get a seat on demand.

Bid-system will determine market value of the seat based on the specific circumstances.

Consumers are willing to pay other consumers for their seat.

Bid-system will be consumer-to-consumer.

Consumer-to-consumer bid system for tables in coffee shops

Cost Structure

Variable:*SG&A*Web hosting*Mobile app development

Fixed:*Initial site/app development

Revenue Streams

*Subscription (consumer and/or coffee shops)*Rev share (% of transaction volume)*Order and/or reservation fees*Advertising*White label/managed service*Small fee from coffee shop if customer makes a reservation (5-10 min find an open seat model)

Key Partners

*Coffee Shops*Coffee drinker (shop customers)*Businesses*Social media apps (Yelp, Foursquare, Twitter, FB, etc.)

Key Resources

*Human (design, technology, customer acquisition expertise)*Business relationships*Financing

Value Propositions

Consumer:*Guaranteed seating*Time-savings*Easy payment*New source of easy $$

Coffee shop:*Better monetization of utilized capacity*Better monetization of excess capacity*Exposure/discovery*Direct access/connection to consumer

Customer Segments

Consumers:*Socializer*Coffee aficionados*Casual coffee drinkers*Students*Freelancers*Full-time professionals

Coffee shops:*Coffee + Food*Coffee only

Pain Point Summary: Wasted Time, Lack of Seating at Best Shops

Key Activities

*Two-sided customer acquisition (coffee shops and consumers)*Feedback loop*Channel management*Segment expertise*Marketing (branding, PR)*Customer acquisition

Customer Relationships Get: In store promotion, app store SEO, social media, partnerships with Yelp and FoursquareCoffee Shop app

Keep: Loyalty program,

Grow: Coffee Shop finder/profiler app

ChannelsPrimary:*Mobile application*Online/web

Secondary:*Industry coffee Magazines that shops might read*Social media*Universities*Coffee shops

What we learned on Day 3

Hypothesis Reality

Consumers are frustrated with uncertainty/inability in securing a seat/table within coffee shops when in need.

Problem was not as significant as originally thought (primarily weekends and small, popular shops).

Consumers are willing to pay for ability to get a seat on demand.

Not universal. WTP lower than expected (<$5.00).

Consumers are willing to pay other consumers for their seat.

Cultural barriers to concept of paying someone for their seat.

What we discovered

*Work for extended periods of time*Be productive (not waste time)*Enjoy great coffeePains

*Uncertainty on seating availability*Uncertainty on productive, conducive workspace*Limited outlets, spotty or no WIFI*Guilt of “squatting” at table without paying for more goods

Gains*Peace of mind for of available seating*Access to fast WIFI and outlets*More time for work/meeting*Able to take calls if needed*Sense of community; networking/meeting people of interest (social, professional)

Gain Creators*Ability to reserve seats online/via mobile app

*Super fast WIFI and outlets at every seat*Sound-proof phone booths

*Express line for shorter waits for coffee to-go*”JavaSeat profiles” and table reservations

places you next to people of similar interests/backgrounds

Pain Relievers*Table reservations

*Guaranteed outlet and fast WIFI*Beautiful design that promotes

productivity*Unlimited work time without need to

buy any coffee/food

*Artisanal coffee shop/co-working space hybrid*Membership subscription for key features

Cost Structure

Variable:*SG&A*Web hosting*Mobile app development

Fixed:*Initial site/app development

Revenue Streams

*Rev share (% of transaction volume)

Key Partners

*Coffee Shops*Coffee drinker (shop customers)*Social media apps (Yelp, Foursquare, Twitter, FB, etc.)

Key Resources

*Human (design, technology, customer acquisition expertise)*Business relationships*Financing

Value Propositions

Consumer:*Guaranteed seating*Time-savings*New source of easy $$

Customer Segments

Consumers:*Office-less professional*Coffee shop “regulars”*Busy-bees*Socialites

Key Activities

*Feedback loop*Channel management*Segment expertise*Marketing (branding, PR)*Customer acquisition

Customer Relationships Get: In store promotion, app store SEO, social media, partnerships with Yelp and FoursquareCoffee Shop app

Keep: Loyalty program

Grow: Coffee Shop finder/profiler app

ChannelsPrimary:*Mobile application*Online/web

Day 4 Pivot

Hypothesis Solution

Coffee shops do not truly fill the needs of office-less professionals

Office-less professionals can purchase a membership that entitles them to unlimited wi-fi, coffee/snacks, soundproof phone booths

Ambience, decor and community are highly desirable factors in choosing a remote workspace

Keep the to-go customers, create a space for non-members so that coffee shop feel is retained, but work space is amplified

Create a brick and mortar shop that addresses the office-less professionals’ need for coffee shop ambiance with workspace amenities

ThirdSpaceThirdSpace is where your local coffee shop meets the shared

workplace.

ThirdSpace wants people to feel welcome to just pop-in or, better yet, stay the entire day. It’s a new coffee shop specifically tailored to people seeking an efficient “third space” to host a meeting, to get work done, to surf the web, to meet new people, or to just get outside of the home/office.

ThirdSpace does not reinvent the local coffee shop. It re-presents the beloved coffee shop culture to keep it fresh and energized, human yet relevant.

Coffee shops beautifully designed to keep you inspired, creative, and most of all productive

ThirdSpace ...the NEW Coffee Shop“I’M AM OFFICE-LESS WORKER AND WANT TO BE HERE ALL THE TIME, ARE THERE ANY PERKS FOR ME?”

YES! Join the ThirdSpace community and become a member! As a member, you will get:

-Seat Reservations made online on our mobile app

-Super (and we mean SUPER) fast WIFI

-Access to the Express to-go line

-Ability to pre-order your coffee/food on our app

-Sound-proof phone booths to make your phone call in private (and for those whose conversations you don’t want to hear!)

-Create a ThirdSpace user profile

-Locker Storage

-Unlimited artisanal coffee

“I AM JUST A WALK-IN, CAN I STILL COME IN??”

YES! OF COURSE! We have top-quality coffee and some of the best artisanal pastries in addition to:

-Standard to-go coffee

-First-come, First-serve (limited) seating

-Limited WIFI

-Limited Outlets

-ThirdSpace community

-Beautifully designed spaces

Cost Structure

Variable:*SG&A*Rent

Fixed:*Store design and equipment

Revenue Streams

*Membership*Per-per-use*Direct in-store sales

Key Partners

*Co-working spaces*Remote workers*Freelancer union*Baristas

Key Resources

*Real estate locations*Human (baristas)*Capital (store footprint, equipment)*Architect/Designer*Operations specialist

Value Propositions

*Third space specifically designed to be conducive to extended work*Guaranteed seating*Time-savings*Community/connection

Customer Segments

Consumers:*Office-less professional

Key Activities

*Store design*Web/mobile app development*Commercial real estate*Making coffee

Customer Relationships Get: invite-only membership “beta”, co-working space partnerships, professional events (art shows, start-up launches, etc.)

Keep: More store openings (more ubiquitous presence)

Grow: more “premium” offerings to increase membership fees

Channels*Physical Store*Website/mobile app (seat reservations, advanced ordering)

Operating leverage created through memberships and/or pay-per-use

Improved monetization of store capacity can yield up to 2x gross revenue in same footprint as standard coffee shop

ThirdSpace...Individual Store Economics

ThirdSpace...the MVP

“Yea i'll try it out for a few months. Beats paying so much money for the Columbia club :)”

“I am in, guys. Great idea!”

“Is there one on the Upper West Side? If so, I’m there.”

“Really looking forward to your UWS opening”

ThirdSpace...Has Customers!!

ThirdSpace..where we are headed!

Continue to explore the Thirdspace MVP beyond CBS networks

Further customer discovery: - Coffee shops with excess capacity to test ThirdSpace concept

- Additional Customer Segments: Freelancers, independent contractors, students - Consultant Companies: corporate memberships

Develop cost structure:- Real Estate cost research

-SG&A