{"channel":"misc","content":"It strikes me that the LLM, in some way, completely misunderstands the situation.  (<xantham> It has fallen into the register of an IBM commercial, rather than an actual product. )\r\n\r\n[# Regional fast-casual restaurant chain (~40 locations, 500 employees). #]\r\n<teal> Currently paying $50K\u2013150K per year for point-of-sale, inventory management, scheduling, and loyalty systems from vendors like Toast or Square. (<red> the 3% processing fee *WILL NOT GO AWAY*.) (<red> *should* restaurants have loyalty systems? )\r\n<teal> Their general manager knows exactly what they need \u2014 she's been running restaurants for 20 years. (<blue> in the future, the *machine* will know what you need better than the general manager with 20 years of experience.  (<red> the GM will serve as a better *foil* to the machine than the *machine* can.) )\r\n<teal> A freely licensed scheduling and inventory system, generated by a large language model (LLM) and tailored to their specific supply chain (they source locally, their waste patterns are seasonal), replaces generic software-as-a-service (SaaS) with something that actually fits. (<red> the *machine* will know what their waste patterns are. (<blue> you aren't special.) )\r\n\r\n<teal> If another regional chain forks the code and improves it for their context, the license requires those improvements to flow back.\r\n<red> <<< If an 8-restaurant chain is using a piece of software, they aren't going to have a rival restaurant chain *fork* the software.  Neither company has a software development team. (<green> the *Build v. Buy* question is for larger companies, with more important software) >>>\r\n\r\n----\r\n\r\nSome questions raised:\r\n# Do they have a \"scheduling system\"?  (<red> yes?  They have a spreadsheet.  If they don't like the spreadsheet, they can talk to << LONDON >> (<green> the agent that manages the inventory system.  it takes phone calls.) )\r\n# Do they have a Point-of-Sale system?  Yes.  Always yes.  (<green> is this a market *disrupted* by AI?  no.  the two limitations are hardware form-factor, and the stability of the 3% (<red> we use this as an estimate for the cost-of-chargebacks.) transaction-fee price.)\r\n# Do they have an Inventory system?  (<xantham> No.  They have an << inventory management system >>.) (<red> the << Inventory >> system means they always have what they need (<green> and at a \"good\" price).  Inventory management just tracks what you have, and how much it costs.)","created_at":"2026-02-16T17:25:59.049272","id":752,"llm_annotations":{},"parent_id":751,"processed_content":"<p>It strikes me that the LLM, in some way, completely misunderstands the situation.  <span class=\"colorblock color-xantham\"><span class=\"sigil\">\ud83d\udd25</span><span class=\"colortext-content\"> It has fallen into the register of an IBM commercial, rather than an actual product. </span></span>\r</p>\n<p><span class=\"inline-title\"> Regional fast-casual restaurant chain (~40 locations, 500 employees). </span>\r</p>\n<p><span class=\"colorblock color-teal\"><span class=\"sigil\">\ud83e\udd16</span><span class=\"colortext-content\"> Currently paying $50K\u2013150K per year for point-of-sale, inventory management, scheduling, and loyalty systems from vendors like Toast or Square. <span class=\"colorblock color-red\"><span class=\"sigil\">\ud83d\udca1</span><span class=\"colortext-content\"> the 3% processing fee <em>WILL NOT GO AWAY</em>.</span></span> <span class=\"colorblock color-red\"><span class=\"sigil\">\ud83d\udca1</span><span class=\"colortext-content\"> <em>should</em> restaurants have loyalty systems? </span></span>\r</span></span></p>\n<p><span class=\"colorblock color-teal\"><span class=\"sigil\">\ud83e\udd16</span><span class=\"colortext-content\"> Their general manager knows exactly what they need \u2014 she's been running restaurants for 20 years. <span class=\"colorblock color-blue\"><span class=\"sigil\">\u2728</span><span class=\"colortext-content\"> in the future, the <em>machine</em> will know what you need better than the general manager with 20 years of experience.  <span class=\"colorblock color-red\"><span class=\"sigil\">\ud83d\udca1</span><span class=\"colortext-content\"> the GM will serve as a better <em>foil</em> to the machine than the <em>machine</em> can.</span></span> </span></span>\r</span></span></p>\n<p><span class=\"colorblock color-teal\"><span class=\"sigil\">\ud83e\udd16</span><span class=\"colortext-content\"> A freely licensed scheduling and inventory system, generated by a large language model (LLM) and tailored to their specific supply chain (they source locally, their waste patterns are seasonal), replaces generic software-as-a-service (SaaS) with something that actually fits. <span class=\"colorblock color-red\"><span class=\"sigil\">\ud83d\udca1</span><span class=\"colortext-content\"> the <em>machine</em> will know what their waste patterns are. <span class=\"colorblock color-blue\"><span class=\"sigil\">\u2728</span><span class=\"colortext-content\"> you aren't special.</span></span> </span></span>\r</span></span></p>\n<p><span class=\"colorblock color-teal\"><span class=\"sigil\">\ud83e\udd16</span><span class=\"colortext-content\"> If another regional chain forks the code and improves it for their context, the license requires those improvements to flow back.\r</span></span></p>\n<div class=\"mlq color-red\"><button type=\"button\" class=\"mlq-collapse\" aria-label=\"Toggle visibility\"><span class=\"mlq-collapse-icon\">\ud83d\udca1</span></button><div class=\"mlq-content\"><p> If an 8-restaurant chain is using a piece of software, they aren't going to have a rival restaurant chain <em>fork</em> the software.  Neither company has a software development team. <span class=\"colorblock color-green\"><span class=\"sigil\">\u2699\ufe0f</span><span class=\"colortext-content\"> the <em>Build v. Buy</em> question is for larger companies, with more important software</span></span> </p></div></div>\n<hr class=\"section-break\" />\n<p>Some questions raised:\r</p>\n<ul>\n<li class=\"number-list\"> Do they have a \"scheduling system\"?  <span class=\"colorblock color-red\"><span class=\"sigil\">\ud83d\udca1</span><span class=\"colortext-content\"> yes?  They have a spreadsheet.  If they don't like the spreadsheet, they can talk to <span class=\"literal-text\">LONDON</span> <span class=\"colorblock color-green\"><span class=\"sigil\">\u2699\ufe0f</span><span class=\"colortext-content\"> the agent that manages the inventory system.  it takes phone calls.</span></span> </span></span>\r</li>\n<li class=\"number-list\"> Do they have a Point-of-Sale system?  Yes.  Always yes.  <span class=\"colorblock color-green\"><span class=\"sigil\">\u2699\ufe0f</span><span class=\"colortext-content\"> is this a market <em>disrupted</em> by AI?  no.  the two limitations are hardware form-factor, and the stability of the 3% <span class=\"colorblock color-red\"><span class=\"sigil\">\ud83d\udca1</span><span class=\"colortext-content\"> we use this as an estimate for the cost-of-chargebacks.</span></span> transaction-fee price.</span></span>\r</li>\n<li class=\"number-list\"> Do they have an Inventory system?  <span class=\"colorblock color-xantham\"><span class=\"sigil\">\ud83d\udd25</span><span class=\"colortext-content\"> No.  They have an <span class=\"literal-text\">inventory management system</span>.</span></span> <span class=\"colorblock color-red\"><span class=\"sigil\">\ud83d\udca1</span><span class=\"colortext-content\"> the <span class=\"literal-text\">Inventory</span> system means they always have what they need <span class=\"colorblock color-green\"><span class=\"sigil\">\u2699\ufe0f</span><span class=\"colortext-content\"> and at a \"good\" price</span></span>.  Inventory management just tracks what you have, and how much it costs.</span></span></li>\n</ul>","quotes":[],"subject":"Six 500-Person Companies (part 2)"}
