Hi again David, I have some questions on behalf on our investing community, Doriot Venture Club. Congrats on your success and thanks in advance for your responses! 1) What is the average cost to “run” a city once it's operational post-launch? How many employees do you need “on the ground”, and can it be lean enough to be profitable at ~$500k estimated revenue per city? 2) Can you speak more to your customer churn and retention rates? It’s hard to tell from the campaign. For those who do churn, what’s the primary reason? Are you receiving any feedback re: customer’s time, & ability to try new places as they get older? I.e. it might be hard to keep “trying new places” once you have kids, more job responsibilities, etc. 3) How extensive is the data you provide to restaurants to prove increased revenues and profits? How do restaurants access this data? Is this data & profit guarantee from one-time visits or from turning new guests into recurring customers? Do you/have you considered offering incentives for users’ repeat visits to their favorites? 4) Do you have any plans to monetize your data beyond providing it to restaurant partners for their Offline campaigns? 5) What does launching in a new city entail? And, what’s stopping another company from replicating your model in their city before you arrive? 6) Are you still considering expanding into other non-restaurant verticals long-term? Thank you!
User photo
Founder & CEO
Hey Dan — thanks for the questions. 1. We employ one full-time social media marketer in the city. We're at $1M in revenue in RDU and $500k in revenue in the cities that launched last year. I expect all of our current cities to drive $1M or more in revenue. Our restaurant sales team is remote and is spread across markets. 2. Annual renewal rate is on one of the slides. The #1 reason people churn is "Too busy." Part of being busy is job, kids, etc. as you say. 3. Extremely extensive. Every cent discounted and spent by every single Offline customer who visits any partner restaurant is tracked. We guarantee profitability at the first visit, which by nature guarantees it for future visits. We do not offer incentives for followon visits. We do not want to compete in the loyalty space (right now). 4. At the moment, no. 5. We have a 12-week playbook for opening new markets that involves B2B sales, launching our new social channels, and running ad campaigns to get our first 1000-2000 paying members. What's stoping others from copying it? Nothing, if they can figure it out themselves from scratch. 6. Yes. Fitness and family activities in particular. Offline is building a multi-vertical lifestyle product and brand.