The OMC Handbook — OnQ Next Gen Master Plan

Operations Management Company · AI-Driven Product Line · Food & OTC Retail Solutions · Recurring Revenue and EBITDA Improvement

October 17, 2026 · Strictly Private & Confidential · Living working document: Claude Doc

1. Executive Summary — The Leverage Thesis

The conclusion in one sentence: on a standalone basis OnQ stays within today's value band; with the alliance layers added, the same company, the same Akron facility and the same channel relationships produce multiplicative value through four distinct leverage layers. The standalone projection rests solely on OnQ's own 2022–2026 history; the levered growth path applies only inside the alliance (the distinction is carried in parentheses throughout).

1. Supply leverage — the Qumbet Asia sourcing network (China + Türkiye) with assembly in Akron: COGS of the existing table business comes down.
2. Category leverage — in addition to the Technology and Cosmetic table solutions, entry into Food Market and OTC Health & Personal Care: the Phygital Wellness Kitchen, Mediterranean Chef pop-up/bar formats, and an OTC discovery table.
3. AI leverage — the "Build Your Tray" interface, a cross-sell engine and demand forecasting: same hardware, higher basket and frequency.
4. Design/industrial leverage — the OnQ Next Gen AI-Driven Product Line to be founded by Serdal Korkut Avcı, under the industrial leadership of Fikri Özdemir (the Arçelik tradition): the move from fixture supplier to product/category owner.

"Qumbet Asia + OnQ USA + industrial leadership = 111": each layer raises the value of the others — the sourcing network makes Akron cheaper, Akron makes new categories possible, the AI layer improves category unit economics, and design leadership turns the whole into a brandable product line.

The OMC Strategy — Operations Management Company (Rev.2: The Plan Rewritten)

The main theme that emerged from this study is now clear: the plan is in fact an OMC strategy. The four leverage layers are unchanged; but their carrier is a new structure that takes over OnQ's production side and becomes an independent business: OMC — Operations Management Company (the name is institutional, not tied to a person). Specialty: retail fixtures, displays, islands, tables and pop-up tech, across food, cosmetics, personal care, health and small home electronics — all with AI-driven solutions (sensor/vision networks, smart shelving, automated inventory reconciliation, SLA-backed 99.9% digital uptime).

Structure — the outsourcing agreement

1. Year-1 fixed budget: OMC signs an outsourcing agreement with OnQ; all production costs transfer to OMC. The first-year budget is OnQ's current production cost base — the existing production line is subcontracted at that fixed budget. Fixed fee, fixed orders. A neutral, predictable start for OnQ; every efficiency gain OMC creates during the year stays with OMC — incentives are aligned from day one.
2. Exclusive supplier: for every new product entering the leverage package, OMC becomes the exclusive manufacturer of the OnQ brand at a fixed price. OnQ owns the product and the channel; OMC owns production.
3. Independent profit business: under the same roof, OMC builds its own revenue center as an assembly-solution supplier to third-party customers from the U.S., Mexico, China, Türkiye and beyond. The alliance thereby gains a Solution Provider / Supplier firm built on the Qumbet Asia capability.

OMC's three fronts

The main theme — who gained what

• Paul: freed from the burden of production and employing labor; OnQ is simplified into a pure marketing & sales + channel company.
• OnQ: controls costs through the fixed contract and gains a COGS advantage — more competitive in sales; the Next Gen category now carries an OTC, Cosmetics, Food and AI-driven recurring product range.
• The alliance: gained OMC, a Solution Provider supplier firm — the Qumbet Asia capability in institutional form.

Governance

• OMC leadership: Serdal Korkut Avcı — the Next Gen design mandate moves under the OMC roof (design + production in one hand: a short design-for-manufacturing loop).
• Fikri Özdemir: participates as an advisor, structured so as not to conflict with his existing corporate obligations and compliance boundaries; no executive role.
• An OnQ CEO (this step comes first): a profile like Gökhan Başaran, drawn from the Turkish-Indian network, is appointed CEO of OnQ. Reference profile: 18+ years of global experience; 8 years in the global home-appliance industry (MEA P&L ownership, €40M+ portfolios, multi-country distributor networks); portfolio management of 20+ growth-stage companies on the Canadian federal innovation side; national AI pilot frameworks + MIT AI education. The CEO's first task is due diligence: reconciling Paul's expectations with OMC's realities and making the structure investable.

Sequence (this section supersedes the actor table in Section 9)

1. OnQ CEO appointment (Başaran-type profile) → independent due diligence
2. OMC formation + the OnQ outsourcing agreement (Year-1 fixed budget, fixed fee / fixed orders)
3. Leverage products (PWK, Mediterranean Chef hardware, OTC tables, Next Gen devices) onto the OMC line at exclusive fixed prices
4. Opening OMC's third-party customer front (with OnQ capacity commitments protected)

The OMC Core Team — Founders and Professional Management

An operations company raises capital on its people before its machines. OMC is presented around three names — one in execution, one on the advisory bench, one in the reference seat:

The founding roof and the professional team: OMC is presented around these three names — together with OnQ's 15-person Design/Engineering core, the Akron production team and the Qumbet Asia sourcing network — as founders plus professional management. The brand-backup principle: the first brand is OnQ — the OnQ factory is OMC's first production line. Every subsequent brand is added onto that same line as contracted capacity.

The Competitive Panorama — Not Rivals, a Market Map

To put it the way Forbes would: America's retail-fixture industry is a multi-billion-dollar backstage that still largely runs on a carpentry-shop economy. Everyone builds the table; almost no one sells the table's software, sensors, AI layer and field operations in a single contract. OnQ's competitive matrix in the CIM confirms it: OnQ is the only firm filling all seven capability columns (Outform, LG&P, Lynx and Darko cover one or two; InVue/MTI/Scorpion sit in security only). For OMC the implication is striking: every OnQ competitor is a potential OMC customer — because OMC is not a display company but the production + AI-integration + SLA-backed field-operations layer they all need.

The essence of the comparison: none of these firms is weak — all of them are single-layer. The one that builds the fixture doesn't build the AI; the one that builds the AI has no factory; the one with the factory doesn't give an SLA in the field. OMC sells the "three layers, one contract" model born on the OnQ line — first to OnQ, then to everyone on this map. (Firm profiles are open-source summaries; revenue/capacity details must be verified before external use.)

2. Baseline: OnQ Today (verified against the Project Polaris CIM)

OnQ Solutions, Inc. (founded 2004; HQ Hayward, CA; production in Akron, OH): custom retail display solutions for complex, high-value categories — retailers including Walmart, Costco, Best Buy, Lowe's and BJ's; brands including Apple, Google, Sony, Meta, Samsung and Starlink. 101 employees; 3,500+ completed display projects; ~5 million consumer interactions annually.

The "two idle assets" thesis is confirmed and strengthened by the CIM:

• Akron: a 213,000 sf purpose-built facility plus 65,436 sf leased in April 2026 (LOI ≈ $540K/yr). Production still runs five days, single shift — second and third shifts are a free growth option. The 2024 consolidation delivered $1.2M of annualized savings; the triple-net lease renews December 2028.
• Channel: OnQ manages ~80% of the electronics category for its largest customer; health & beauty and home-appliance expansion discussions are underway. Walmart Connected Home: 4,000+ stores since 2018, 40+ refreshes. Existing-customer sales cycle: 1–4 months.
• New (from the CIM): OnQ has been selected for a major retailer's "Next Generation" program reimagining the entire electronics department (gaming, audio, IoT, health, AI). This report's "OnQ Next Gen" product line is built alongside that program: same line, same channel, OnQ's own branded products.

Standalone reading: the 2022–2025 revenue band oscillates between $32M and $49M; 2026P of $60M revenue + $5.9M adjusted EBITDA is a management projection. The standalone scenario extrapolates from this history only (excluding the Qumbet Asia and Fikri Özdemir leverage — "without us," value stays in today's band).

3. Leverage 1 — Supply: Qumbet Asia Sourcing, Assembly in Akron

Thesis: components come from the China and Türkiye sourcing network; value-added assembly and final configuration happen in Akron. The "Assembled in Akron, Ohio" identity is preserved while COGS drops on Asia–Türkiye sourcing depth.

• Asia leg: Qumbet Asia's 25-year, three-continent know-how network and its Türkiye-rooted supplier selectivity are applied to OnQ's existing China sourcing depth. China sourcing depth is retained; brand exposure and the management layer are carried by Turkish-origin management.
• Türkiye leg: the tooling, sheet-metal, plastics and electronics sub-industry capacity of the white-goods / small-appliance ecosystem becomes the semi-finished source for table, bar and pop-up bodies.
• Standardization: Octanorm (modular aluminium systems; U.S. base Lithia Springs, GA) as body-standardization partner; a modular skeleton + local cladding cuts freight volume and installation time.

Expected effect (5th Wall observation, to be verified): a meaningful reduction in unit COGS in the existing table business and higher Akron utilization. Numeric targets will be entered once OnQ's actual unit-cost data arrives from the data room — this report deliberately quotes no percentages.

4. Leverage 2 — Food Market Entry: Pop-up and Bar Formats

A third vertical is added to the existing Technology and Cosmetic table solutions: food. The entry order follows the project principle — first the table, then the product, then the brand.

• Pret A Manger and DO & CO are reference facilitators, not partners: from Pret, the lesson of space compression and fresh menu architecture; from DO & CO, central gourmet production + cold-chain discipline. The draft plan's "partnership" language is not used in external documents.
• The unattended format was dropped: Mediterranean Chef is designed as a staffed counter; automation stays in the delivery and inventory layer, with a person in front of the experience.

Why food: OnQ's big-box access plus Akron's shift option intersect with the opportunity to convert supermarkets' underperforming square footage into a high-frequency category. Claims of superiority over the sushi bar (hot+cold assortment, three-meal frequency, dietary inclusiveness) come from the draft plan and will be proven in pilot.

5. Leverage 2+ — OTC Health & Personal Care

A leadership vacuum in the U.S. OTC consumer-health market: fragmented category shelves, no experience layer, and no dedicated smart touchpoint in big-box even as Gen Z wellness spending grows. OnQ's big-box access + Akron capacity intersect precisely with this gap. Entry follows the same order:

1. First the table: an OTC/wellness discovery table — the third sibling of the Technology and Cosmetic tables. The AI interface is the natural advisor: need → product matching, ingredient transparency, diet/allergy filters (shelf navigation, not medical advice — compliance language drafted with counsel).
2. Then the product: OnQ-branded home-health and personal-care electronics assembled in Akron (one of the first Next Gen families). OnQ does not enter OTC drug/dermocosmetic manufacturing; that shelf is stocked by established manufacturers — OnQ owns the table and the channel.
3. Then the brand: a category brand built on proven table + device data; the line can also serve third-party brands of the SharkNinja/Dyson class.

6. Leverage 3 — The AI Layer: From Interface to Product Line

AI creates value at two levels — first raising the yield of existing hardware, then becoming the identity of the new product line.

Level 1 — AI-interfaced retail solutions (a software layer on existing hardware)

• Build Your Tray / Build Your Meal: the consumer states a goal (calories, diet, macros); the system builds the tray. The macro-transparency band is the trust layer.
• Cross-sell engine: basket growth via hot/cold balance and macro-goal completion suggestions. "Higher basket" is a KPI to be measured in pilot.
• Demand forecasting and waste management: replenishment from location-hour-traffic data; dynamic pricing for approaching expiry.

The same AI interface is carried back to the Technology, Cosmetic and OTC tables: product comparison, personalized demos, planogram telemetry. Software built for food also makes the existing verticals' tables smarter — the leverage runs both ways. The technical base exists: the Converge™ platform unifies device management, content and analytics, and its IBM i/AS400 integration already delivers real-time inventory live at Costco (IT Jungle, Sep 2026). "AI interface v1" is not written from scratch; it sits on Converge — reducing Phase 1 time and risk.

Level 2 — the OnQ Next Gen AI-Driven Product Line

A family of OnQ-branded, AI-embedded devices/units assembled in Akron (the wellness-kitchen set; Gen Z personal & hobby electronics). It is built with the design leadership of Leverage 4 and sold on OnQ tables on revenue share — the channel is the product's first showcase.

7. Leverage 4 — Design and Industrial Leadership

The first three layers produce efficiency; the fourth produces identity. A mandate is proposed for Serdal Korkut Avcı as founder of the "OnQ Next Gen AI-Driven Product Line," under the industrial roof of Fikri Özdemir's leadership (the Arçelik tradition).

Serdal's profile fit (per his own statements; to be verified for external use): 30+ years of product design; Executive-Design-Director-level leadership; end-to-end design of four brands' small-appliance families; building the VUX concept from zero through to a startup acquisition (the "concept → team → commercialization" chain); GenAI + design consultant since March 2025 (MIT xPro AI-products certificate; the Özyeğin GenAI-design pilot program); and, on manufacturability, product-development management for washers/dishwashers with a cost-innovation record.

Proposed mandate (first 90 days): (1) the Next Gen line's design language and first product-family architecture — wellness-kitchen set first; (2) a GenAI-embedded core design team in the Arçelik tradition, on an Istanbul-studio + Akron-production bridge; (3) single-hand design of the table + device + screen experience; (4) design-for-manufacturability input to the China/Türkiye supplier shortlist.

Open points: the U.S. big-box fixture world is new terrain for Serdal (closed by pairing him with OnQ's channel team); whether he prefers a full-time role or a fractional Chief Design Officer model must be asked, not assumed.

8. The Added-Value Matrix — Value Bridge

Reading: each step reuses the assets of the one before it (facility, channel, software, team); the total is therefore a multiplier, not an arithmetic sum — that is the economic meaning of the 111 reading. The sequencing principle never changes: first the table, then the product, then the brand. Step heights are conceptual; the numeric bridge will be drawn after data-room verification.

9. Strategic Roadmap — From Merger to a Retail Revolution

Note (Rev.2): the actor table below is the first version; for the current division of roles and sequence, the OMC Strategy section above governs (Fikri Özdemir is now an advisor; OMC leadership sits with Serdal Korkut Avcı; a CEO is additionally appointed to OnQ).

Purpose: the foundation for putting the value arising from the Paul–Mehmet merger/acquisition plan on the table. Who does what:

Roles intersect rather than overlap — Paul carries the channel and the alliance, Fikri the factory, Serdal the product, Qumbet Asia the cost base, and Mehmet the whole. Phases and gates:

Vision sentence (for external documents): the merger transforms OnQ from a fixture manufacturer into the AI-interfaced operating system of physical retail — Phygital Elements; the retailing of the next century begins at the table, grows in the product, and is crowned in the brand. Gate dates follow the Option 2 timetable; if the merger closes under another option, the Phase-0 gate shifts while phase contents remain.

10. Figure Discipline — Verification List and Attribution

Attribution standard (verbatim in all derivatives): future valuations and forecasts are presented as theory by Value Masters Academy, built from open sources combined with Mehmet Narin's 32 months of market field work on behalf of ALA; unverified projections carry the "5th Wall observation" label; final figures are validated by the Atmosphere Alliance Council in cooperation with Cole-Frieman & Mallon, and the funding phase proceeds on those definitive values. The standalone/levered distinction is stated in parentheses on every projection.

11. Risks and Next Steps

• Food-operations risk: OnQ is a hardware company, not a food operator. The staffed format carries people/operations load; no scaling before a central-production / cold-chain partner is selected.
• Focus risk: opening all four layers at once splits management bandwidth. Sequence: L1 immediately; L2 by pilot; L3 as the pilot's software; L4 in parallel, with product launch after L2 proof.
• Channel conflict: the food format competes with incumbent deli/sushi operators at the same retailer; single-category exclusivity language per retailer belongs in the contracts.
• Figure risk: if draft-plan margin/ROI claims leak into external documents, the cost is credibility — the status table above is binding.

1. Pull OnQ unit economics from the data room and quantify the Leverage-1 effect — owner: VMA; validation: Paul Chapuis (OnQ) + Fikri Özdemir
2. Mandate conversation with Serdal Korkut Avcı: full-time vs. fractional preference + first-90-days scope
3. Mediterranean Chef pilot-location shortlist and a 90-day pilot KPI set: Rev/SqFt, basket, repeat frequency, waste
4. China + Türkiye supplier shortlist (the Qumbet Asia network + Octanorm) and the Akron assembly-flow plan
5. Add this report to the Atmosphere Alliance Handbook as the "OnQ Next Gen — Leverage" page