From: Peta

To: Ms. Deanna Jones

Subject: Decision needed- Sauce and Spoon tablet project - pricing changes

Good morning Deanna,

It’s Peta here, the project manager of the menu tablet pilot project. I have just received an
update from Seydou, our restaurant consultant. He is the person in charge that dealing
directly with Terrific Tablet, the tablet vendor which handles the hardware and software of the
new tablets.

As Seydou updates, Terrific Tablet has recently renewed its pricing model, from a one-time
licensing fee to a subscription-based service. Our budget was based on their original
pricing, therefore we would need to renew and review our project budget. Originally it costs us
$200 per tablet for the 40 tablets we need, which is a one-time fee of $8000. With the new
pricing model, it would cost us $300 a month for all 40 tablets, which is $3600 per year.
However, the $3600 will need to be paid every year going forward. Only as we start to
approach the third full subscription year will we start to pass the original budget of $8000.

This change will impact our project budget, as well as Sauce & Spoon’s efficient and profitable
OKR of keeping our operating expenses below 65% and our profit margins above 8%, I am
asking for your input on how best to proceed. To me, we can either move forward with this
new proposal or look for another vendor.

Looking forward to hearing from you soon,

Peta