>>GERRY: PURDUE STUDENTS AREBUILDING A ROBOTIC FROZEN YOGURTKIOSK WITH SELF-SERVE SOFTWAREAND NON-DAIRY OPTIONS.
FROYO EXPRESS HAS ALREADYATTRACTED NEARLY $35,000 INFUNDING AND PRIZE MONEY.IT IS THE SUBJECT OF THIS
MONTH'S INNOVATORS WITH DR. K.DR. K, TAKE IT AWAY!>> THIS UNIQUE INNOVATIONBROUGHT TO US BY SOME PRODUCE
STUDENTS AND WE HAVE ONE OF THECOFOUNDERS HERE WHO'S IN THEINDUSTRIAL ENGINEERINGDEPARTMENT, HENRY BERKEMEYER.
WELCOME TO THE SHOW.>> THANKS FOR HAVING ME.>> WHERE DID YOU COME UP WITHTHIS IDEA?
>> ONE OF OUR COFOUNDERS, ONENIGHT HE WAS UP LATE STUDYINGAND DECIDED HE NEEDED TO REFILLHIS WATER BOTTLE AND WENT
DOWNSTAIRS TO THE DORM CAFÉ ANDTHEY WERE CLOSED AND HE REALIZEDWHY CAN'T WE AUTOMATE THISPROCESS AND HAVE IT BE OPEN
24/7.>> HOW DID YOU GO FROM VITAMINWATER TO YOGURT?>> AT FROYO EXPRESS WE WANT TO
DELIVER CONVENIENT FOOD ANDBEVERAGE OPTIONS BUT HAVE HIGHQUALITY AND HEALTHY FOOD ANDBEVERAGE AND SO WITH OUR
ADVISORS HELP WE DECIDED TO GOALONG THE ROUTE OF FROZENYOGURT.>> WHAT PROBLEM ARE YOU AFTER
HERE?>> RIGHT NOW THEBRICK-AND-MORTAR SHOPS HAVE BEENTHE ONLY OPTION OF GETTING
FROZEN YOGURT SO WE ARE TRYINGTO REDUCE THE HIGH OVERHEADCOSTS THAT ARE ASSOCIATED WITHTHE BRICK-AND-MORTAR SHOPS AND
HAVE THE AUTOMATED KIOSK THATCAN BE PLACED WHEREVER.>> EXCELLENT EXCELLENT.SO THE INNOVATION ARE THE
KIOSKS.>> ABSOLUTELY.>> THAT'S FANTASTIC.WHAT'S THE POTENTIAL MARKET AS
FAR AS LOCATIONS ON STUFF?>> MAINLY HIGH FOOT TRAFFICLOCATION SO COLLEGE CAMPUSESLIKE PURDUE ARE GREAT.
ALSO MALLS, MOVIE THEATERS,AIRPORTS AND AMUSEMENT PARKS.REALLY ANY LOCATION CAN HOUSEOUR KIOSK.
>> EVEN IU.>> EVEN THERE.>> WHAT ABOUT CAPITAL FUNDING?WHAT HAVE YOU RECEIVED SO FAR IN
INITIAL FUNDING?>> A LITTLE OVER $30,000 FROMBUSINESS COMPETITIONS AND GRANTFROM PURDUE.
>> VERY GOOD.SO WHERE DO YOU SEE THE GROWTHPOTENTIAL FOR THIS?>> SO THE FROZEN YOGURT
INDUSTRY IS OVER $2 BILLION ANDLIKE I MENTIONED EARLIER IT'SMAINLY IN THE BRICK-AND-MORTARSHOPS SO FROZEN YOGURT'S
EXISTENCE.THE THING WITH THAT IS THEY ARENOT VERY PROFITABLE BECAUSE THEYNEED A HIGH FOOT TRAFFIC AND WE
ARE REDUCING THAT COST ANDOVERHEAD WITH THEBRICK-AND-MORTAR SHOPS AND ABLETO ADD AN INEXPENSIVE MACHINE TO
PRODUCE HIGH PROFITS.>> YOU HAVE A MANUFACTURER.>> WE HAVE A MANUFACTURERLINED UP.
>> THAT'S FANTASTIC.WHAT ARE YOUR STEPS FOR THE NEXTYEAR THIS COMING YEAR?>> WE'VE BEEN IN TALKS WITH
PURDUE OVER THE LAST TWO YEARS.WE ARE FINALIZING OUR FIRSTLOCATION THIS SEMESTER AND THENINSTALLING AT THE START OF
SECOND SEMESTER.>> THIS COULD START LOCAL BUTGO NATIONAL.>> THAT IS THE PLAN.
SO WHEN WE INSTALL SECONDSEMESTER WE WILL DO A SIX LIKE AEIGHT MONTH TRIAL AND THENEXPAND LOCALLY, STATEWIDE AND
THEN NATIONALLY.>> FANTASTIC.AS I DO I LIKE TO GIVEPRESCRIPTIONS TO HELP YOU OUT.
IN YOUR CASE I THOUGHT OF THETHREE C'S FOR A NEW INNOVATION.SO THE FIRST IS CREDIBILITY.WHAT I MEAN BY THAT IS THE BEST
LOCATIONS, FIND LOCATIONS TOESTABLISH THE VIABILITY, WHICH ITHINK YOU ARE GOING TO BE DOING.SECOND IS CUSTOMERS.
MAKE SURE YOU HAVE LOCATIONSWHERE YOU HAVE CUSTOMERS THENYOU'VE MENTIONED CAMPUSES ANDMALLS, WHICH WILL BE VERY
POWERFUL.AND THE LAST IS CAPITAL.AND FIND VIABLE SOURCES OFCAPITAL THAT HAVE EXPERIENCE IN
FOOD AND BEVERAGE INDUSTRY THATCAN PROVIDE FUNDING AND ADVICEAND COUNSEL AS WELL.I THINK THEY WILL HELP.
>> I HOPE SO.>> I WISH YOU THE BEST ANDWHERE CAN THEY FIND YOU?FROYO EXPRESS.COM.