Alan Cole

Atlanta, TX (USA)
Role(s):
Founder/Owner/Principal

Hostess

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Location: Atlanta
Industry: Advertising
Year Founded: 2011
Number Employees: 1-10 people
Business Stage: Creation/Idea
Entity Type: Not Incorporated
Description: Welcome to HOSTESS, the newest mobile device application innovation. HOSTESS creatively links the exploding social networking movement to the restaurant industry and strategically promotes dynamic restaurant marketing. In the United States, the restaurant industry reports $604 billion dollars in annual sales with 960,000 locations. Restaurants now receive almost half, 49%, of the food dollar. With annual restaurant marketing budgets between 3 and 5% of annual sales, or $18 to 30 billion annually, we believe the opportunity is fantastic to serve this industry with our fresh approach to an exploding concept in retail marketing. Rapidly growing marketing companies like GrouponNow, Living Social, Open Table, and Facebook have capitalized on new techniques for marketing and have attracted many restaurants, validating the demand in the marketplace. However, there are serious questions as to the sustainability of these pricing models for restaurants, often taking as much as 50% of the advertised revenue, and whether “deal” based ads will ultimately build loyalty or just “deal” based customers. HOSTESS uniquely provides mobile device advertising solutions at a price restaurants can afford and tools that promote restaurant profitability, loyalty, and independent control. HOSTESS uses the Subscription business model for restaurants, and the Freemium model for app users. Because our models are simple and cost effective, our first year projections support break even the first month in business (post-launch) and repayment of start-up capital and interest at the end of a full business year. HOSTESS just completed the technical specification process, validating all design engineering. Our next step is to produce the app. All technology being used has been verified by the organization we plan to use to produse the app. Our goal is to establish investor partners very early on so we can rapidly move into a revenue producing company.