Analysis of ICO AKM GLOBAL
AKM Global is a worldwide platform of smart bio-food restaurants based on blockchain and intended for food industry.
The principles on which the project is based are waste-free, environmentally-friendly, ecological food producing technologies. No chemical supplements and environment pollution.
The purpose of the project is to turn fast food into bio-food, reduce food production costs.
The chain of restaurants will operate 24/7 and the waiting time for the order will be no more than 120 seconds. A consumer can make an order in different ways. For example, to order pizza at the restaurant AKM Global using the touchscreen display menu. Pizza will almost instantly be automatically made and delivered with the help of special delivery belt system, which is built in directly next to the tables. Another way is to order pizza in a vending machine. Vending machines can be installed in shopping centers, business centers.
Blockchain is needed to control the whole cycle from the wheat production, raw components processing till the product sale to the end customer.
As you can see this is quite a traditional fast-food business. The blockchain is needed here rather for beauty and doesn't play a big role. The market niche has existed for a long time and there is serious competition in it. The founders of the project believe that quality ingredients and optimization of production processes will help them to capture their market share.
The founders of the project expect to attract investment in the sum of $50,000,000. This will allow to open 60 fully equipped Restaurants including own raw materials bases in Europe, Asian countries, Gulf Countries, U.S.A and Canada. Also they will offer a franchise option for all interested parties to open a fully automated “AKM Pizza” Bio food Restaurant (starting from 2019). All profits will be reinvested to expand the restaurant network. The number of restaurants above 5,000 and the European market share of about 0.1% are expected to be in 3 years. And the number of restaurants after 10 years is expected to be more than 300,000 restaurants.
The company also plans to launch other projects in the field of healthy food:
- AKM City Market (network of organic supermarkets)
- AKM ice cream & coffee (cafeteria)
- AKM Bakery
- AKM water and drinks
- AKM Baby foods.
It is interesting that the so-called Gold Insurance Policy is announced in case of an economic crisis. All contributions made during the Crowdsale with the value more than 10 ETH are insured by fine gold (999,9) in calculation of 1 gr. of fine gold per 1 ETH of investment. AKM coins can be exchanged for gold. It is well-known fact that during crisis the price for the gold shoots up for 300%-500%. But in fact it is only the imagination of the founders of the project. They haven't provided any figures in support of this "well-known fact". The Gold Insurance Certificate comes into force starting from 1st of January 2019 because the fine gold is purchased from the company own profits. There are no details about where and how gold will be stored, how gold accounts will be linked to token holders. The founders of the project thus want to maintain the stability of their tokens. But it's more like PR. Bonuses totalling $280,000 will be allocated between the engineering team, developers and management.
Another $85,000 will be granted to marketing and PR specialists, and $39,000 worth of coins to consulting firm.
25% of the total number of coins will be allocated for marketing budget formation, partner programs, team expansion and the further development during the next 3 years.
The business plan looks too blurry for this kind of project. The founders of the project should have focused on the details but not to dust the investors' eyes with their far-reaching plans and gold certificates. Statements of this kind: «In the next 3 years the total quantity of restaurants will go over 5,000. Each restaurant is expected to have about 400% of net profitability monthly» look at least not serious.
The project AKM Global has great plans but marketing strategy is almost none. It is unclear how the company will promote its product on the market. There is no information about marketing budget, promotion channels, etc.
AKM Global was founded in 2008 in Germany (Cologne). The first idea of a fully automated Restaurant came to the founder Rem Maer who has been researching the market to find a better alternative to very popular fast food.
The founder of the project has not much experience in the food industry. It is only 3 years. The team also includes Waldemar Albach, Head of Engineering department, Andreas Erben, CNC Programmer, Igor Block, Master of restaurant equipment/inventory, Nick Levin, Consultant of technical service team, Leoni Leglert, Marketing Communication Manager, 6 people in total. The team doesn't have any serious experience in the food industry, and this is a big disadvantage. This explains the fantastic plans and the lack of well-thought details.
The Vision of the Market
The White Paper provides some data on the pizza market in Europe. 78% of the population consider pizza their favorite dish. The annual growth of the pizza market is 2.6%. The average rentability of pizza business is on the level of 35-65%. The price of pizza AKM Global is compared with the prices of three competitors in the European market. It follows from this comparison that pizza AKM Global is almost 2 times cheaper than its competitors. But this cannot be called a full-fledged market analysis. The information on the volume of the pizza market and specify shares of the closest competitors in this market should be provided. In addition the products should be compared not only by price, but also by quality criteria, the speed of cooking etc. After all these characteristics AKM Global indicates as its competitive advantages.
Understanding of the Target Audience
The White Paper says nothing about the target audience of the project. In general they are lovers of pizza and healthy food. But a detailed analysis of the target audience by segment should be carried out for this kind of projects .
The founders of the project believe that the main difference from other food establishments is full automation of the food preparation and service processes, which makes possible drastically reduce personnel and operational costs.
Deployment of blockchain technology in company everyday activities will enjoy the business with a high level of transparency and customer trust.
Other advantages of the product are fast pizza cooking and high quality ingredients.
If the project is completed these advantages will help it capture market share. But much more depends on the size of investments, business processes and experience of the team.
AKM Global is not quite a traditional project in the field of ICO startups. It has several advantages:
- the project exists in the real economy
- there is a market niche for the product
- the demand for healthy food is growing.
The minuses of the project:
- the product is not innovative and original;
- the project team has no serious experience in the food industry and is too small for the stated project scales;
- the project does not have a marketing strategy and a realistic business plan.