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Concept for GROWTH

May 22, 2008

Trend setting is never an easy task. It takes a true forward-looking vision, an unwavering
commitment to following through with a plan as well as the gumption to handle the pending success or failure. Tony Molavi and Cathy Wu Molavi, co-owners, Rice Boxx and YumiToGo.comUltimately, for new business concepts to thrive in coming years,
they truly need to cater to the new consumer’s lifestyle, explained Tony Molavi, co-owner with his wife Cathy Wu Molavi of the popular Rice Boxx Asian Café establishments. For those in the food sector, this means creating and delivering on a concept that accurately and competitively provides appealing dishes with fresh healthy ingredients in a manner that does not inconvenience the busy family system.

“This is exactly what YumiToGo.com offers. We are unveiling a
takeout and delivery exclusive concept, which relies heavily on Web
site traffic. The key here is that we are using creativity to satisfy the
needs of a faster lifestyle,” he said. “Yumitogo.com really plays to the
fact that the days are getting shorter for most people. People are work-
ing more hours, and they want to be able to sit down and have a fresh
made meal at home.”

While this type of departure from tradition usually starts on one
of the coasts, and gradually makes its way into the nation’s heartland,
Molavi is confident that Dallas is the right market to test out the con-
cept. “Studies have shown that we are located in one of the historical
testing grounds for new establishments (with the other being in
Atlanta),” he said. “Basically when the concept makes it in one of
these areas it has the ability to succeed in any city.”

Embracing Technology
Since convenience is integral within the YumiToGo.com concept,
the trio — which also includes corporate chef and partner Steve Carey has dedicated a fair amount of time and resources to designing andbuilding the technology behind the ordering operations. “We are a pioneer in the software where the consumer can order and the order goes directly to the chef,” Molavi said. “For everything to work as we
intend, we need to take out the middleman and essentially eliminate the mistakes.”

When a customer visits the Web site, they are presented with a host of appealing menu selections as well as an extremely easy-to-use ordering system. Using a secure system, customers initially create an account, which serves as a personalized database to facilitate repeat business. For instance, the account will store credit card information,
the kind of car a household drives for curbside service as well as past ordering information. “The goal is to continuously improve the convenience factor so that with the push of a button, consumers can initiate an order,” Molavi said. “Plus, with our system people can plan ahead up to two weeks.”

YumiToGo.com also features an order-by-invitation feature where offices can pool orders together and eliminate a lot of the hassles of trying to figure out what everyone wants and placing one complex order destined to be riddled with mistakes. “We have taken something that is often frustrating for offices and made it extremely easy,” Wu Molavi said.

Developing the Menu
While technology is an integral component of the concept, Molavi explained that YumiToGo.com is not just about having a great Web site or solid operations. “It is also something great to offer on the menu. You need to offer value, and today people are focusing in on whether or not the food is healthy. To address this, we have designed a menu void of saturated fat, and we use premium ingredients like green tea noodles even when they cost more than the protein itself,” he said. “It is crucial, especially in launching a new concept that our product has a differentiating factor. Having something that is not available across town is important when building a niche.”

When the trio started developing this concept, they knew the importance of only incorporating foods that are proven to travel well. For instance, steak and heavy starches do not travel well. However, foods like pizza and assorted Asian dishes rely on their sauces to main­tain warmth and consistency — two qualities that are necessary for sat­isfaction. According to Molavi, as the owners narrowed in on actual recipes, a key driver was the fact that it is expensive to cook fresh meals at home. “Although this has driven people to eat out in larger numbers, we want to zone in on being more of a home meal replace­ment outside the typical burger or pizza. What we offer is healthy fresh and in some cases organic alternative,” he said. “When people buy pro­duce it is rarely used in one day, so the food sits in the refrigerator for multiple days, which reduces the level of freshness. However, the pro­duce at YumiToGo.com is delivered on a daily basis. The key is that we are providing fresh food.”

The YumiToGo.com menu is the result of Wu Molavi and Carey working together. Having developed the Rice Boxx concept in 1994, Wu Molavi has served as director of menu and food development for the Rice Boxx’s extensive and diverse menu. Likewise, Carey brings to the table a wealth of experience in menu development and kitchen management including executive chef positions with Restaurants Unlimited, Brinker International and Leeann Chin, among others. Ulti­mately, it was the continued collaboration and transference of knowl­edge that has helped the pair develop dishes designed to present con­sumers with delicate, unique and thoroughly enjoyable flavors.

Also by design, none of the menu features at YumiToGo.com are available at the various Rice Boxx locations. “These are very unique recipes — they are all signature dishes and intriguing items that are not typically available at other Asian restaurants. For example we are fea­turing a signature dish (r & g beef) from the R&G Lounge in San Fran­cisco,” Molavi said. “Steve actually spent three weeks in R&G’s kitchen learning from them, and we are using the menu item with their permission. We have a sesame snap chicken that is very unique.”

In addition, YumiToGo.com offers more than enough menu items so that people are excited by the possibilities and avoid getting burned out by the food offering. “One of the unique items I like is that you can get a hand-tossed salad delivered to your home along with other healthy items such as grilled pomegranate shrimp,” Carey said. “A key difference comes from the fact that we do not cut any corners when selecting our ingredients. For instance, all of our oils are trans-fat free, we use no added MSG, we only use chicken breast meat and our crab and cream cheese rolls are made with real crab meat.

Recognizing the Risk
It has been highly publicized over the years that the restaurant business is one of the riskiest endeavors for any entrepreneur. In fact, according to a study in Columbus, Ohio, Professor H.G. Parsa of Ohio State University, tracked new restaurants from 1996-1999. In the first year, 26 percent closed. Another 19 percent closed the second year and 14 percent the third. So collectively, 59 percent of new restaurants close within three years.

A key contributor to these startling numbers is that restaurateurs are often unable to understand two crucial compo­nents — the significance of minding finances and understanding how to address market desires. Considering that Wu Molavi has a long track record of suc­cess in owning and operating Asian restaurants — starting with Lovers Egg Roll — and that the Molavis currently have four Rice Boxx locations, they have already succumbed to a few of the prescollaborated on the menus for both Rice Boxx and YumiToGo.com sures involved in opening a new restaurant. Plus, Tony Molavis entered into the equation armed with a financial background.

However, this does not mean the team and its new concept are without risk. Being a new concept reliant upon technology, consumer marketing stands to be an ongoing challenge, explained Molavi. “Hav­ing the technology in place will ensure success but only [if] we are able to get the word out and direct people to the Web site.”

Looking Forward
According to Molavi, one of the most exciting aspects of this new concept is the inherent potential for a speedy return on invest­ment. As a result, even as a new concept, the equipment-only expense makes it far easier to fund. “We are developing a formula that is very easy to duplicate in numerous locations primarily because the cash outlay and space requirements are significantly lower,” he said. “Much like the heralded Pei Wei concept, the mar­gin of investment to sales requirements is remarkably low. The cost [of building] to annual sales ratio is attractive. Plus, the low square footage allows us to enter most any market because most any center has 1,000 square feet available.”

The goal for the immediate future is to work all the bugs out before a true and expansive rollout. “We are hoping to have three locations before the end of the year and then continue regionally,” Molavi said. “We are trying to capitalize on a true Web to chef con­cept. We may be ahead of the trend for our area, but this will give us the time to settle into the market and raise awareness.”

Molavi said that, regardless of its success, YumiToGo.com will not take the place of the Rice Boxx. “We will continue to grow both as the market demands,” he said. “They are completely different concepts meeting very different consumer desires.”

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