Mr. Jonathan Hoyles reports
PERK LABS PROVIDES CORPORATE UPDATE
Perk Labs Inc. has provided a corporate update on its commercial opportunities, expanded product offerings and previously announced private placement.
"We are seeing significant demand for both our franchise program and restaurant offering," said Perk chief executive officer Jonathan Hoyles. "Never before in the history of our company have we been so well positioned in terms of our product offering and market opportunity. With the recent launch of our new products and features, I believe we are poised to ride the wave of digital adoption by small-to-mid-sized businesses of ordering and payment services and a surge of individuals seeking a digital business that can be operated from home."
Digital franchise program
After attending the recent Franchise Canada Show in Toronto and the Annual Convention in Ottawa, the company has received tremendous interest in its franchising program. At the Toronto Franchise Canada Show, Perk was one of the most popular exhibitors and it developed 60 franchise leads. Since that show the company has been conducting continuing franchise discovery meetings with a number of promising candidates for the Greater Toronto Area.
Chain restaurant opportunities
As part of Perk Labs' growth strategy, its plan is to pursue small-to-mid-sized restaurant chains and progressively pursue larger chains. The company has a number of chains in its sales pipeline interested in its Order-from-Table product offering.
Custom branded restaurant mobile apps
The company has seen significant demand from restaurants for custom branded apps and have a number of small-to-mid-sized restaurant chains interested in engaging the company to build custom-branded apps.
This is consistent with recent consumer data: A survey of U.S. restaurant customers who use some form of technology when ordering food found that 67 per cent of respondents preferred using a restaurant's own app to websites or food delivery services. Further, a recent state of the industry report from the National Restaurant Association states that "many operators will devote their resources to on-line or app ordering, reservations, mobile payment or delivery management, in addition to back-of-the-house technology."
The company sees custom branded apps as a significant immediate revenue opportunity for Perk. It has started marketing its custom branded app solution to both chains and single-location restaurants. The timing for this offering is ideal as restaurants may be eligible under the government of Canada's Canada Digital Adoption Program to receive a grant to pay for the adoption of a mobile app. Perk Labs has created a special product offering for CDAP Grow Your Business Online participants.
Perk Labs sees custom branded apps as a great new product that its franchisees can also sell, which will further enhance the attractiveness of its franchise program.
Downloadable merchant app
Perk Hero also announced today the launch of its new downloadable merchant app on the Google Play store. To the company's knowledge, none of its competitors specializing in in-restaurant digital ordering and payment have a downloadable merchant app available in the Google Play store. Major tech companies in the delivery space like UberEats, DoorDash, SkipTheDishes and Grab all have downloadable merchant apps that are a key part of their product strategy and ability to scale.
Previously, Perk Hero's merchant app was part of its consumer app. By separating Perk Labs' merchant and consumer apps the company is able to reduce the size, speed up the performance and improve the reliability of both its consumer and merchant apps. A further advantage of a dedicated downloadable merchant app is that it enables the company to upgrade its merchant app at any time without disturbing its end-user customers.
Order now, pay later
A new feature the company implementing as part of its Digital Dine-in offering is Order Now, Pay Later. With this new feature, restaurants will have the option of setting up Order-from-Table as either requiring their customer to pay upon placing an order or the customer can pay (and tip) at the end of the meal -- which consumers are more accustomed to as part of the dining experience. With this new feature, Perk Labs can also accommodate restaurants that only want to Order-from-Table but want to settle their customer's bill in cash. The company sees this as a great way to onboard restaurants that are either not ready to go fully digital with mobile payments or are sensitive to credit card payment processing fees.
Order now button for on-line pickup and delivery button
Perk Labs has also received requests from restaurants to develop an on-line ordering for pickup and delivery option for their own websites. So the company developed Perk's new order now button that any restaurant can insert onto their own website to use Perk Hero's preorder, pickup and self-managed delivery system. This is another feature that enables the company to offer an entry-level feature to a restaurant with an opportunity to upsell on more advanced features.
Restaurant Canada Show
Perk also announced today that it will be attending the Restaurant Canada show -- Canada's leading food service and hospitality event, taking place May 9 to 11, 2022, in Toronto. The company will be showcasing both its custom branded app and Digital Dine-in solution at the event. Off the heels of its recent success at the Franchise Canada Show in Toronto, the company believes this will be an excellent opportunity to generate new business and awareness of its products and services.
Expanded U.S. digital gift card offering
The company also announced today that it has expanded its U.S. digital gift card offering by adding well-known technology and consumer brands to its catalogue, including Google Play, Uber, Uber Eats and DoorDash.
The company also announced that it closed the second tranche of its previously announced private placement. Subscribers purchased 297,493 units for aggregate gross proceeds of $12,494.72. Each unit comprises one common share and one warrant. Each whole warrant will entitle the holder thereof to purchase one common share at a price of five cents, for a period of 24 months from the closing of the second tranche. Collectively, under both the first tranche of the private placement and second tranche, subscribers purchased 7,672,138 units for aggregate gross proceeds of $322,230.72.
All securities issued pursuant to the private placement will be subject to a statutory hold period of four months and one day. Proceeds from the second tranche will be used for marketing and awareness campaigns and for general working capital purposes.
About Perk Labs Inc.
Perk Labs is the owner of Perk Hero, the mobile commerce platform on a mission to empower business owners with the digital tools to provide their customers with experiences that are more engaging, convenient and rewarding. Perk Hero is growing through a unique community-driven digital franchise business that is available to entrepreneurs at an attractive start-up price.
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