Automatic Merchandiser - 12

A Cup Of Coffee
With Chip Wann

Royal Cup's new CEO shares his insight on running a successful OCS operation
By Abby White, Editor

IN FEBRUARY, ROYAL CUP, INC. ANNOUNCED THAT

Chip Wann had been named president and chief executive
officer of the company. As the first non-family member to
lead the company since its inception in 1896, Wann will
oversee Royal Cup's longstanding tradition of coffee roasting
excellence and unparalleled dedication to customer care.
Automatic Merchandiser caught up with Wann for a virtual
cup of coffee to discuss his new role at the company and
Royal Cup's long history in office coffee service.

ROYAL CUP WORKS DIRECTLY IN FOODSERVICE,

HOSPITALITY, OFFICE AND SPECIALTY COFFEE
MARKETS. HOW IS OFFICE COFFEE SERVICE
DIFFERENT THAN THESE OTHER AREAS?

CONGRATULATIONS ON BEING NAMED

PRESIDENT & CEO OF ROYAL CUP! YOU JOINED THE
COMPANY IN 2017 AS CFO, AND THEN MOVED TO THE
ROLE OF COO IN 2019. HOW DOES IT FEEL TO LEAD
SUCH A WELL KNOWN COMPANY WITH A LONG
HISTORY IN THE INDUSTRY?

A: Thank you! I am truly honored and humbled by the
opportunity. I came to Royal Cup in January 2017 as the
CFO and did not expect to one day be the CEO of the
company, primarily because the company was
family-owned and family-run. When
I was recruited to join Royal Cup,
Bill Smith III was the CEO, a
third-generation family leader
of the company. For all those
reasons, it was not something
that I expected.
I believed I could add significant value to the company
from the CFO responsibility
set, as well as on a variety of
operational functions given my
previous experiences, but, again,
never thought I would be the CEO. I
am excited about the opportunity to the
lead the company and, as your question indicates, I am especially excited about leading a company with
such high-quality products. [The company] operates with

integrity in everything that it does, has outstanding people
across the country, provides an unparalleled continuum of
service and provides great value to its customers and their
respective customers - all of which has been the core fabric
of the company since its founding in 1896.

Automatic Merchandiser * April 2020

A: Office coffee service is different in multiple ways. First,
the product set is typically different and more complex.
There has been a significant shift to single-serve coffee,
coupled with a need for materially more snack products with
the growth in employer-provided or employee-paid snacks.
It is less intense on coffee roasting and more intense on the
number of products offered.
Secondly, the delivery is different. In office coffee
service the delivery is typically through the front door
as opposed to the back door, and our employees almost
become an extension of the customer's workforce by helping in their break room to make sure the customer has a
smooth and seamless experience. Lastly, the equipment
requirements and related equipment service are materially
less in the office coffee services environment. The advancement of technology and "smart equipment" in the segment
is adding another level of complexity.

ROYAL CUP HAS BEEN PROVIDING OFFICE

COFFEE SERVICE FOR ROUGHLY 50 YEARS. HOW HAS
OFFICE COFFEE SERVICE CHANGED DURING THAT
TIMEFRAME?

A: We believe it has changed dramatically in the last 50 years
and possibly even more so in the last five to seven years.
When the segment started it was simply basic coffee service
- a pot of coffee, creamer, sugar, cups and stirrers. Today, it
is becoming predominantly single-serve offerings like bean-

148751180 | Evgeny Karandaev | Dreamstime

OCS UPDATE

Automatic Merchandiser

Table of Contents for the Digital Edition of Automatic Merchandiser