Automatic_Merchandiser_June-July_2021 - 6

EDITOR'S NOTE
MMXX: Operators
survive and adapt
THERE'S NO QUESTION THAT 2020 WAS A HISTORIC YEAR FOR
the United States and world, and an extraordinary (and very painful)
year for many of the nation's vending, micro market, office coffee service
and contract foodservice businesses. The economic crisis brought on by
the COVID-19 health crisis was unprecedented in its scale.
Last year in this column, my predecessor, Abby White, had the
Nick Montano
Editor
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@vendingmarketwatch.com
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@VendingMagazine
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unusual assignment of reporting on a record year for convenience
services - sales rose 3% to $24.2 billion in 2019 - just a few months
after the coronavirus had ambushed the U.S. economy in March 2020,
subsequently shutting down most of the industry's equipment and
locations. This year, Automatic Merchandiser's State of the Industry
report is showing a total sales decline of 45%, a loss of nearly $11
billion. What a difference a pandemic year makes.
The vending and micro market industry has never experienced the
abrupt changes that occurred in 2020. Will the pandemic be a blip on
the industry's radar? Or will it have long-term lasting effects on the way
vending and micro market operators do business? Probably both.
We believe that operators whose businesses survived the 2020
pandemic year have a very good chance to prosper as the economic
conditions improve. And they have the technology to succeed; the
industry's adoption of new methods and new tools almost always had
been accelerated by an economic downturn (why change when times
are good?). If that's true, then imagine what far-reaching advancements
a pandemic can procreate for an industry that survives it.
The recovery is underway and is predicted to hasten in September
Will the
pandemic
be a blip on
the industry's
radar? "
2021. The Group of 20 economies all saw their gross domestic product
return to pre-pandemic levels in the first quarter of 2021. China,
where the coronavirus pandemic emerged, recorded the highest
annual growth (18.3%). In the U.S., real GDP, the sum of all goods and
services produced in the economy, jumped 6.4% in the first quarter.
Widespread vaccinations and more government spending helped get
the U.S. closer to where it was before the pandemic struck.
However, just how and when the recovery and booming economy
will affect the operator's future remains to be seen. In the comments
portion of our survey, the main concern voiced by operators was
[paraphrased]: " will the shift to remote work become long lasting and
dampen our business at corporate office accounts? "
To be sure, the performance of vending, micro markets, coffee
service and contract foodservice has always been tied to employment,
but that relationship may no longer apply to these channels.
Automatic Merchandiser's State of the Industry report, which
begins on Page 18, is made possible by operators who take the time to
complete the survey. We are grateful to those who undertook the task
and salute all operators who survived 2020.
6 Automatic Merchandiser * June/July 2021
Editorial
Advisory
Board
Joe Hessling
365 Retail
Markets
Josh
Rosenberg
NAMA Board
Chair
John Reilly
Avanti Markets
Anant Agrawal
Cantaloupe
Systems
USA Technologies
Elyssa Steiner
Cantaloupe
Systems
USA Technologies
Carl Moser
Canteen
Corporate
Chuck Reed
Crane Payment
Innovations (CPI)
Cory Hewett
Gimme
Michael Miller
Mondelēz
International
Paresh Patel
PayRange
Jeff Deitchler
Prairie Fire
Coffee
Jim Carbone
Tradecraft
(retired)
Sandy
Thornton
VendEdge
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