Automatic_Merchandiser_June-July_2021 - 23

Industry report on vending and micro
markets is showing a revenue decline
of 45% - from $24.2 billion in 2019
to $13.3 billion in 2020. The pandemic
essentially erased a decade of
consecutive sales and revenue gains
- and more - reported by convenience
service operators since the end of the
Great Recession in 2009.
This year's State of the Industry
report tells the story of the industry's
will to survive. " Survived. Tried to survive.
Did my best to survive, " were the
most common comments by operators.
2020 OPERATION PROFILES
In this year's survey, some 47% of participants
designated their business as a
full-line operation with vending, micro
markets, refrigerated/frozen foods, and
office coffee service (OCS), compared
with 41% in 2019. This suggests more
full-line firms added micro markets in
2020. Operators offering only micro
markets account for fewer than 3% of
all respondents in the report's sampling.
Nearly half, about 46%, of the
operations surveyed employ one to
five people, down from 53% in 2019.
The second-highest employee range
is 100-plus, or 13%, compared with
16% year over year. Around one in
five operations ran a single route in
2020, compared with 17% in 2019. The
number of operations with 50 routes or
more, meanwhile, dropped 3%. Fewer
stops and reduced inventory requirements
drove route consolidation.
Fewer route acquisitions occurred
in 2020; the exception was partial
divestitures, which increased to 12%,
compared with 6% in 2019. The
number of operators who leased some
or all of their cold drink vending
machines held steady at 70%. About
5% of this year's survey participants
identified as bottling companies with
vending and micro market operations.
More than vending, contract
foodservice suffered last year. While
the number of operators providing
manual foodservice has been
decreasing in recent decades, last
year saw this service category decline
more than 70% from the previous
year, as workplaces limited employee
populations or out-and-out prohibited
manual foodservice.
BIG LOSSES, BUT SOME GAINS
The State of the Industry report's key
data point, total sales for an operation,
changed dramatically. Almost
75% of all participants reported sales
decreases between 10% and 70%,
while 6% said sales increased. In 2019,
by comparison, 64% of operators said
sales increased; 38% of those reported
increases at 10% or greater.
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