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THE RESTAURANT OF THE FUTURE HAS ARRIVEDConnected. Intelligent. End-to-End.
Investors PresentationOct 2017
The Problems
RISING LABOUR COSTS
DIFFICULTY FINDING DRIVERS
MISTAKES IN FOOD PREPARATION
LONG DELIVERY TIMES
INCREASED COMPETITION
FOOD WASTE
BACKLOG IN THE KITCHEN
HIGH EMPLOYEE TURNOVER
2
End to end Optimization of Delivery, Take-Away and Dine-In.
Just-In-Time
Ongoing Machine Learning to Improve Optimization
On-Time Real-Time
In-Store
Out-of-Store
Dragontail’s solution - From Kitchen to customer
PREPARE
Kitchen Flow Management
PACK
Prep. for Delivery/Service
DISPATCH
Schedule for Delivery / Service
DELIVER
Driver Management Tools
ENGAGE
Communicate with Customer
MANAGE
Dashboard and Alerts
3
The Dragontail Connected Restaurant
11
2
3
4Control
Pack
Prepare/Make
Dispatch
5
Driver Pool
6
Deliver
7
Engage
Manage
8
44
PREPAREKitchen Flow Management
CONTROLComputer vision quality
control
PACKPrepare for
delivery/service
DISPATCHAI scheduling for delivery /
service
DELIVERDriver management tools
DRIVER POOLManage on-staff and
freelance drivers
ENGAGECommunicate with end
customer
MANAGEDashboard and real-time
alerts
Ongoing machine learning to optimize all
order (input) and delivery (output) options
55
There are so many moving parts• Size of orders
• Total orders
• Kitchen order backlog
• Kitchen staffing
• Driver availability
• Scheduling
• Real-time driver location
• Delivery locations
• Traffic, weather
• …
• The time the order arrived• The number of active orders• The number of items in an
order• The exact location of each
driver• Drives Availability • The hour of the day ; traffic
hours• Weather conditions• The planned staffing of
drivers and cooks for the upcoming hours
6
Dragontail’s Sweet Spot(Impacting all business aspects)
Operat ional Eff i c iency
Management and Control
Market ing & Bus iness
Inte l l igence
7
The Dispatch Station
8
The Most Advanced KDS
9
The Algo Dragon Drive
• Unique mobile app assisting in managing the entire delivery process
• Optional module for drivers / carriers
• Enables real-time communication amongst the carriers, stores and customers
• Enables driver to see order details, customer details, conduct a survey (optional) and more
10
QT™ Computer Vision Quality Management
11
QT™ Computer Vision Quality Management
• Ensure correct quantities and distribution for toppings, sauce and cheese
• Automatically identify both type and quality of crust
• Kitchen – Real-time alert of deviations from original order
• Manager –Total branch data and analysis for a given time frame
12
• Engage directly with customers on real-time order status and location of driver
• Communicate special offers, loyalty announcements, feedback surveys etc.
• Option module for customer to contact driver
YOUR ORDER IS ON IT’S WAY! Est. arrival time: 20:13
LIVE ORDER STATUS
PREPARING BAKING PACKING ON IT’S WAYBON APPÉTIT
…
Customer Engagement
13
The Connected Restaurant – KPI’sQuality Control and Waste ReductionEliminate errors with product, preparation and ingredient (wrong/missing toppings) and optimize packing time
Kitchen Optimization Ongoing machine learning to optimize all order (input) and delivery (output) options
Dispatch OptimizationPrioritize deliveries based on optimal dispatch combination
Delivery ManagementTrack and manage driver routes, and combine on-staff and freelance drivers for cost reduction
Build LoyaltyEngage with customers via images of pizza on the way, information on driver’s route and ETA etc.
Monitor and ManageReal-time BI data and alerts for on-site and central management
Serve it Hot and FreshSynchronize preparation timing with availability to deliver / serve
14
DELIVERING REAL RESULTS
15
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
4/12 4/19 4/26 5/3 5/10 5/17 5/24 5/31 6/7 6/14 6/21 6/28 7/5 7/12 7/19 7/26
Driver Labor Percent
Dragontail Stores Control Group
Lower Labour Cost*
* USA Franchisee data16
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
4/12 4/19 4/26 5/3 5/10 5/17 5/24 5/31 6/7 6/14 6/21 6/28 7/5 7/12 7/19 7/26
ATD Time
Dragontail Stores Control Group* USA Franchisee data
Faster Delivery Times*
17
0.0
5.0
10.0
15.0
20.0
25.0
4/12 4/19 4/26 5/3 5/10 5/17 5/24 5/31 6/7 6/14 6/21 6/28 7/5 7/12 7/19 7/26
Rack Time
Dragontail Stores Control Group* USA Franchisee data
Shorter Rack Time*
18
Improved Customer Satisfaction*
72%70% 70% 70%
75%78%
6%
61%61% 62%
58%
62%65%
70%
8%
47%
OSAT Likelihood toreturn
Likelihood torecommend
Taste of Food Speed of Service Accuracy of Order EAP Delivery OSAT
Dragontail (DT) Stores vs National P8
Beluga National* Canada data DT 19
A Win for the Team*
Improved work environment
Higher employee retention
Lower Re-training cost
Higher driver income (more trips per hour and higher tips)
Employees report less stress during busy shifts* Canada Data20
MILSTONES– HIGHLIGHTS SINCE IPO
21
Q1
20
17
Milestones in 2017 (Since IPO)
Partnership agreement with AT&T
Partnership with REVEL, a leading US-based POS system developer
Partnership with MONSIERGE Inc. - a global hospitality solutions provider
Successful pilot with the first non-pizza customer in US
First commercial implementation of CCSU
Became the de-facto platform for food delivery in Israel after being chosen by Domino’s Israel as well as PH Israel
Launched a Melbourne based R&D facility to support growth in the Asia Pacific
Progressing Artificial Intelligence (AI) Project – testing computer-vision QT quality system with Domino’s
Sign Canada’s Leading Fast Casual Restaurant Operator – Cara Group
Expands in the US via POS Channel
Customer receipts for Q3 were up 50% compared to Q2
Completion of a rollout of the Algo in all PH corporate stores in Canada
Google endorses DTS and refers its first customer
Opening a Singapore office overseeing all Asia Pacific operation
KFC Asia announcing a Multi-Countries pilot of the Algo
Start implementation of Algo with major franchisees in Canada
First monthly revenue >US$25k/mth
Achieve over 100 installations
Received the first Google referred customer in Fleet Management Segment
Achieve over 200 installations.
Secure additional leading North American QSR customer
Sign the first customer in Asia
Achieve monthly revenue of >US$60k/mth
Algo operating in more than 6 countries and pipeline of more than 1,000 stores
Implementing the computer-vision QT quality system in major Global QSR chains and exploring possibilities for camera applications in other segments
Q2
20
17
Q1
20
17
Q2
20
17
Q3
20
17
Q4
20
17
To do in Q4
22
Announced Key Customers
CARA GROUPCanada
KFCAsia and Cyprus
BURGER KINGCyprus
16 HANDLESUSA
PIZZA HUTCanada + Cyprus + Israel
DOMINOS
23
Q3 - 2017Q2 - 2017Q1 - 2017Q4 - 2016Q3 - 2016Operating Metric
77333Operating countries
8984685247Operating cities
1,03049042511574Number Stores contracted
76320Number of POS joint
ventures
$708,000$285,000$165,000$124,000$113,000Annualized revenue(based on last month of each QTR)
148%73%33%10%n / aQuarterly Growth(Annualized revenue)
Delivering exponential growth with 1,030 stores now contracted (not all installed)
24
Business Model
Installation fees
Monthly subscription fee on a per store basis
XXX
XXX
Brand Country Estimated Stores
Pizza Hut Global 12,000
KFC Global 26,000 (Growing to 70,000)
Domino’s Global 14,000
Burger King Global 13,000
QSR USA 300,000
QSR China 2,191,000
QSR Canada 16,000
Monthly Initial fee
Algo $200 $1,000
CCSU $50 $2,000
All prices $USD
1
2
Very large, global addressable market
25
Algo ROI per Store
$3,300Additional monthly profit per store
$1,400Estimated Additional Gross Profit from Sales increase *
$700Estimated Monthly Chargebacks reduction**
$1,200Estimated Monthly Labor Cost Saving (based on average savings of 4 hours a day)
Estimated Monthly System Cost: $300***
*Using research showing 11% increase in the future sales from customers receiving their orders within 30min, an average improvement of U30 deliveries of
20 orders a day, and average orders size of $30.
**Based on reductions achieved in pilot facilities during 4 month.
***Including 3-years amortization.
1,110%ROI
26
Case study: Pizza Hut
“This solution allows to: Streamline and prioritise the food preparation and delivery process, significantly improving delivery times, product
quality, and customer satisfaction. Ultimately removes the thinking and chaos from the BOH ... Customers love it and team members love it too!”
Mohammed Pashar – IT Manager, Pizza Hut Canada – Feb 2017
First pilot store Dec 2013
Rollout to corporate stores commenced Feb 2014
Rollout to franchisees commenced Jan 2015
Reduction in labor cost (as % of sales) 2.8%
9.8%
100% Increase in on-time deliveries
Increase in repeat customers20%
Same store sales increase, mainly due to an increase in repeat customers orders
“First pilot store
Nov 2015
Rollout to corporate stores commenced April 2016
Rollout to franchisees commenced March 2017
Israel
Canada
27
Investment Highlights1
Unique, first mover technology
The Algo is the only system in the world that fully automates the kitchen flow, the driver dispatch and delivery process. Current technologies only focus on driver dispatch and tracking.
2 3
4Significant competitive advantage
The Algo is a unique, patent pending system that uses a very sophisticated algorithm and years of on-site operation experience that creates high barriers for entry for potential Dragontail competitors.
5 6
Significant market opportunity
Fast food/QSR/delivery market size of over $400 billion globally with over $250 billion in North America alone. Potential to expand into additional markets such as supermarket deliveries, airline/other catering, and non-food same day deliveries.
High calibre management team
Management have significant expertise across technology, systems management and business development.
Established and growing revenue base & pipeline
The Algo is already installed in Israel, Canada and the US and generating revenue from monthly licensing fees. Further growth in existing and new markets is expected.
Strong validation from leading QSR’s
Our QSR customers report additional monthly revenues of ~10% and monthly labor cost savings of ~3%, while also reporting significant improvements in customer satisfaction and a reduction in customer complaints.Attracting the leading QSR customers in targeted countries.
28
Appendix
29
USA Canada AustraliaNew
ZealandJapan China Thailand Singapore
Algo
AlgoInnovative
Patent
CCSU
Drivers Module
App
IP UpdatePatent applications have been submitted in a number for countries with more to follow.
KeySubmitted About to be Submitted30
One holistic management platform
Higher driver productivity, lower labor costs
Happier, more loyal customers
Faster ROI
Source: Dragontail
* Notifies of kitchen, order and delivery statuses, and optimizes operations** Based on reviews from social media
Feature Dragontail Others
Includes Kitchen Management and Dispatch Modules V X
True optimization before orders show up at the kitchen, for fastest delivery time and optimal efficiency
V X
Full Integration (Platform integrates to POS) V V
Real-time Operational Notifications* V X
White Labelling / Customer Branded App V V
Advanced Business Intelligence Reporting V X
Camera-vision quality management system with Real Time Food Quality Analysis
V X
Instore Prediction and Promise Time (Delivery guarantee time) V X
Driver Routing Management V V
Customer Satisfaction Result (On-time, Fresh / Hot Delivery) V X
Customer Support Quality** V X
Real-time Delivery Confirmations V V
Real-time Customer Updates V V
Intelligent Tracker (Displays last leg of delivery segment to customer) V X
Rapid Integration* (Dispatch Module only) V V
Full Integration (incl. Kitchen Management Module) V N/A
More Features than Competitors
31
THANK YOU
This document has been prepared by Dragontail Systems Limited (DTS) to provide selected parties with a preliminaryunderstanding of DTS. It is provided on a confidential basis, and may not be reproduced in whole or in part, nor may any of itscontents be disclosed to any other person, without DTS’s prior written consent. This document is provided by DTS for generalinformation purposes only, without taking into account any potential investors’ personal objectives, financial situation or needs. Itshould not be relied upon by the recipient in considering the merits of any particular transaction. It is not an offer to buy or sell, or asolicitation to invest in or refrain from investing in, any securities or other investment product. Nothing in this document constitutesinvestment, legal, tax, accounting, financial product or other advice. The recipient should consider its own financial situation,objectives and needs, and conduct its own independent investigation and assessment of the contents of this document,including obtaining investment, legal, tax, accounting and such other advice as it considers necessary or appropriate. Thisdocument has been prepared on the basis of publicly available information and certain confidential information. DTS has reliedupon and assumed, without independent verification, the accuracy and completeness of all such information, includingforecasts. It contains selected information and does not purport to be all inclusive or to contain all of the information that may berelevant to the document. The recipient acknowledges that circumstances may change and that this document may becomeoutdated as a result. DTS is under no obligation to update or correct this document. DTS its related bodies corporate and otheraffiliates, and their respective directors, employees, consultants and agents make no representation or warranty as to theaccuracy, completeness, timeliness or reliability of the contents of this document. To the maximum extent permitted by law, nomember of DTS accepts any liability (including, without limitation, any liability arising from fault or negligence on the part of any ofthem) for any loss whatsoever arising from the use of this document or its contents or otherwise arising in connection with it. Anyrequests for information in connection with this document should be addressed directly to DTS and to no other party.
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