Andy Mackensen

Playa del Rey, CA (USA)
Role(s):
C-Level Executive (CEO, CFO, etc.)

VenDelicious

Find More Startups Startup
Location: Playa del Rey
Industry: Manufacturing
Year Founded: 2007
Number Employees: 1-10 people
Description: VenDelicious Hot Food…Deliciously Convenient Executive Summary Card Direct Elite (CDE) Products, INC., the designer and manufacturer of the VenDelicious 100, a technologically advanced automatic retailer (vending machine) that serves hot meals in about a minute or less, has solved a major problem in our world: How to feed millions of hungry people when there are no convenient hot food options nearby. Americans, now more than ever, are pressed for their time. In the 1970’s, American families spent over three hours per day together. Today, that time has dwindled to less than 40 minutes. A trend toward longer and more varied working hours has led to the gradual demise of the traditional family meal and the increase in demand for individual meal solutions. Such lifestyle changes remain the primary driver of growth in the $2.5B market for vended meals in the United States. The strong trend for ultra-convenience continues… Improving upon flawed hot food machines on the market, CDE Products (“the Company”) has designed an attractive machine with an efficient delivery system that can accommodate and heat hundreds of different microwavable sandwiches and entrées. The machine retails for significantly less than CDE’s two competitors’ machines and it has 90% less moving parts, which drastically reduces maintenance costs. VenDelicious features a 9-inch LCD screen on the façade where buyers of the Vendelicious 100 can offer digital screen advertising. The Company designed VenDelicious with modular parts for easy maintenance in the field. It currently holds a patent for its proprietary delivery systems and heating oven concept. CDE Products is located in Temecula, California, and will distribute VenDelicious worldwide. The Company operates in the $4.5 billion Automatic Vending Machines industry with over 700 national competitors. The average national company has annual sales of $6.4 million and employs a staff of 10. In the state of California, there are 71 such establishments; the average California company has a staff of four and annual sales of $1.6 million. According to the 2004 Vending Times Census of the Industry, people in the U.S. deposited over $44 billion in vending machines. CDE’s primary customer is the vending operator and new business seekers. Vending operators often have a large portfolio of existing vending locations where VenDelicious can be placed with no new selling by the vending operator. They understand the vending business and are willing to test a new product to increase their revenue. Also, business seekers are great target customers of the Vendelicious Hot Food Vending Machine due to the machine’s potential to generate new revenues in conventional and non-conventional vending locations. The majority of the eight million vending machines in the U.S. are standard snack and beverage machines with little innovation or variety. Of the 700 vending machine manufacturers nationwide, only two manufacture hot food vending machines. These companies are KRH Thermal Systems and LHD Vending Systems. Both companies have been slow to capture market share because their machines are expensive, have limited product options regarding size of food and breadth of menu, are mechanically complicated, and are expensive to service. In addition, the companies’ customer service was lacking. CDE Products will derive revenue from five areas (to start): 1) 100 CDE-owned "placement" machines. CDE owns and operates these machines. 2) Machine sales to vending operators and location owners 3) Percentage of retail food sales 4) Leasing arrangement 5) Advertising (LCD screen) The Company is wholly owned by CDE Partners, Inc. an ATM company based out of Temecula, CA. Card Direct Elite is owned and operated by O’Neil Sawh and Mark Hoyt, who serve as managing partners. Mr. Sawh and Mr. Hoyt have had numerous major achievements during their careers including growing Card Direct Elite over 400% in four years, making it the second largest ATM provider in San Diego. Contributing to the Sales and Marketing efforts, Andy Mackensen joins the team with experience as an officer in the U.S. Navy. Mr. Mackensen led numerous teams during the Iraq War and after two Persian Gulf deployments, retired from the Navy. He holds a BS from Boston University and an MBA from Stanford University. CDE Products will seek investor liquidity within 5-7 years via the sale of the Company, but will examine other opportunities to provide investors with attractive returns such as recapitalization and share repurchases. CDE projects production of close to 3000 machines/year by year five with compound annual growth rate (CAGR) of investor funds targeted at 30% per year. To achieve its objectives, CDE Products is seeking $2M in equity and/or debt funding from investors. Year 1 Year 2 Year 3 Year 4 Year 5 Machines Sold 430 (Phone # removed)1400 Total Installed Machines 430 1035 1821 2842 4171 Revenue (mil) $3.4 $5.0 $6.5 $8.5 $11.0 Net Income (mil) $.78 $1.3 $1.8 $2.6 $3.5 *Figures are assumptions Our Mission To feed millions of hungry people by providing affordable and convenient hot meal options where people work, eat, and play. Visit: (URL removed) for more information. Contact: Andy Mackensen Phone: [<a href="(URL removed)">send me a message</a>] Email: (URL removed)