Cyber Cafes Fail To Deliver Profits

(Monday, June 07, 1999) - The lesson, says Kite at the Screenz chain in Chicago, is better equipment and software. Consumers will still flock to a cyber cafe that features simpler, faster and higher-quality computer services than they are willing to pay for at home..."Our customers pay that only because we have designed a browser, and other features are integrated so that you only have to click once to use them all, including games that we have programmed right into each machine."

And offering great computer systems is much more important than brewing a great cup of coffee, says Kite. "Food and beverage sales are only about 13 percent of our revenue."

Further, Screenz interiors are more similar to modern offices than to coffeehouses. "Frankly, the idea of coffee with a computer is a nonstarter. Coffee and food will help get people to stay longer, but it won't bring them in."

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