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Elon Musk SUES Sam Altman
My First Million
Trading Op-ex for Capex
The concept involves using robotic systems in restaurants to increase efficiency and reduce operational costs. These robots can assemble bowls quickly and accurately, surpassing human speed and precision. By investing in robots, restaurants trade operational expenses (op-ex) for capital expenses (capex), leading to improved net margins. While op-ex includes ongoing labor costs, capex is a one-time upfront investment that can be depreciated for tax benefits. The initial cost of implementing robots is offset by long-term savings in labor expenses, resulting in a higher net margin for restaurants. As robots become more cost-effective and efficient over time, the strategy of trading op-ex for capex becomes even more favorable for businesses.
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