Bjorn Ng Profile picture
8 Apr, 15 tweets, 3 min read
My summary from the $PAR Punchh acquisition call earlier.

It's an amazing opportunity right out there.

Thread 👇
How much overlap between Brink, RM and Punchhh? What is the cross selling opportunity?

-Site count: Brink 30% penetrated with Punchhh
-Punchh landed 35% of top 100 chains in the country
-Significant cross sell opportunity
-Both can pull each other upwards
What is the integration plan?

-Punchh will be run as a business unit. They are heavy on product engineering.
-$PAR thesis of acquiring Punchh is to build a full platform.
-Restaurants are struggling with spaghetti of solutions.
-Leverage on AI, data migration from Punchh.
Any timeline for doing the integration?

-No limitations. Integration starts next week.
-Exciting part – Team at Punchh is incredible. Best we’ve seen.
Any risks with other POS limiting integration with Punchh?

- Low probability. Don’t see POS convincing other restaurant to lose their loyalty program.
- It’s very hard for someone to argue, I want you to change their product if it’s owned by someone else.
Cross pollination strategy?

- Product side, that’s the key. Guest information, transaction, back office. Now they have the COMPLETE information.
- With entire platform, create an ENTIRE DIFFERENT CUSTOMER EXPERIENCE.
Cross selling – relatively simple.

You got the best POS, best back office, best loyalty. Don’t make sense to pick someone else.

Because you need all these systems to talk to each other.
If you pick different providers for each, the integration will be tough.
How much of Punchh exposure comes from retail?

- Focus on restaurant. Will follow Punchh lead. Initial expansion. Punchh in retail. For now vast majority is restaurant.
- But speaks volume of the quality of Punchh product that it can expand to retail.
Other Info

- Brink Q4 12k sites, 30% are Punchh.
- Punchh are in many large logos that Brink is not in at that moment. It helps to elevate Brink.
- On a foundational level, it’s the product that gives them a complete platform.


- Punchh has high customer satisfaction score, PAR knows from their customers how they like Punchh.
- Can sell AI solution to customers now. Incredible opportunity to expand TAM. $PAR can now use AI to increase LTV of their customers


- Disadvantage of Brink is rolling out to large chains. Punchh don’t have this issue. Can roll in 6-9 months (Punchh goal)

- Take customer data, tie back to register, payment, kitchen, and create a unique product for the restaurant.

- Brink in 12k sites, doubles revenue without signing new contracts.
- Add to 40k+ sites in Punchh, well over 50k sites.
- Brink $175/mth. RM $120/mth. And payment offering.
- Punchh: Basic $75/mth, 2nd module $50/mth, AI another $50/mth
This brings us to about $282m of potential ARR.

FYI, $PAR is at $30+m ARR right now.

$PAR is going to create an entire different experience for their customers, through all the data that they will collect by having a full platform.
Imagine walking to a restaurant and before you even speak, they know your dietary requirements, what you like to eat, what to recommend to you, past payment methods. It’s like a hotel in a restaurant!
Savneet is one heck of a CEO. One of the best I've seen.

He's not worried about TAM at all. He knows it’s going to increase TAM significantly. The TAM gets larger as the full platform is built. He can’t believe Punchh is going to be part of them.

I'm long $PAR. Early days!

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More from @bjornng

6 Apr
Love this.

Several media/news outlet nowadays are two-faced.

1 day, they can say it's a bull market. The next day, it's a bear market.

Their purpose is to create irrational fear and greed in the market.

Look at these 2 headlines from a reputable site from 11 & 12 Jun 2020. Image
In my early days of investing, I was fixated on these news. Especially when things are free falling and my emotions were taking over.

But then I realize it's a complete waste of time and brain power, which can be spent on just reading on companies.
I can say today, I'm a much stronger investor than I was.

That's what I love about investing. It's not only about investing in great companies with a purpose for the future.

It's a self-discovery process to understand my emotions and learn how to control it.
Read 4 tweets

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