X factor is no mystery with XProtean system

ON THE MONEY: At Una Mas in San Jose, XProtean's software application enables the restaurant to centrally manage its inventory, time cards and point-of-sale ordering. The software is now operating in 60 businesses and XProtean is partnering with hardware providers such as Sharp Electronics and NCR.

MILPITAS, CALIFORNIA, May 6, 2008– Jag Kapoor faced a dilemma as the owner of a convenience store chain.

He wanted a computer system to manage sales data, but his small business couldn't afford the software used by major national chains.

So Kapoor enlisted engineers to create an integrated retail management system from scratch in 2006. The software has been so successful within the Bonfare Markets chain that Kapoor started selling it to franchise owners in chains such as Una Mas and Wendy's, as well as owners of single-store operations such as liquor stores. The software is now in place at about 60 businesses.

Milpitas-based XProtean Inc. is targeting the software to small business owners who would benefit from a system that compiles and analyzes data about sales, inventory and employees' hours.

XProtean is partnering with hardware providers such as Sharp Electronics and NCR to market and sell the product, which costs about $3,500 for a single store. The software scaleable, so hardware makes up about 70 percent of the product's cost.

The system is also accessible through the Internet, so an owner can monitor his business from outside the building.

Price is a big factor for the target market because of the low margins in quick-serve restaurants, convenience stores and liquor stores, said Vikas Jain, executive vice president of business development for XProtean.

"Small business owners have not been typically able to capture that technology that gives and advantage to the larger chains," Jain said.

XProtean's system links inventory and sales data to detect theft, which has helped Jack Mesbahi reduce food loss by 15 percent at his two Una Mas franchises.

Mesbahi said his restaurant's first system could present data on the number and size of transactions but gave him no insight into what products were selling. He switched to XProtean in 2006. "That's information you need to make your restaurant better," he said.

Kapoor is a partner in Una Mas Inc., but franchise owners such as Mesbahi are free to choose their operating systems. Mesbahi said he encouraged other franchise owners to use the software because he immediately could gauge how customers were reacting to the store's promotions and new menu offerings.

Jain said much of the potential market lies in countries such as India and China, where electronic cash registers aren't yet the norm.

Developing the technology in India has helped the company keep costs down, said Kapoor, chief executive officer of XProtean. The company has about 40 employees, with half in the Milpitas office.

The private company has been funded by friends, family and employees. Kapoor expects the business to be profitable by the end of the first quarter in 2009.

"We developed this for our own use, but afterwards i realized there was a market of people like me who were looking for this exact thing," Kapoor said.

Contact:

Contact Person: Vikas Jain
Company Name: XProtean, Inc.
Telephone Number: (408) 933-4466
Fax Number: (408) 933-4545
Email Address: info@xprotean.com
Website address: www.xprotean.com