Automatic Merchandiser - 24

can be as simple as targeting separate products for different areas of a
business, such as white-collar office
and blue-collar manufacturing, or as
sophisticated as launching a loyalty
program that tracks what a customer
buys and offers promotions based on
those purchases.
"Now, rather than just following
intuition, we have empirical data that
supports the different product mixes
of these different accounts," Duska
continued. "I do think that's something
we've all been dabbling in, and that will
start to pick up momentum in 2020."
According to Bardy, operators
should use data gleaned from what
customers purchase to deliver a
best-in-class experience, ultimately
boosting sales.
"QR code technology gives us a
wealth of data that sharpens our focus
on the latest culinary preferences and
consumer buying habits," Bardy said.
"It also helps validate what new products and fresh food items we're testing."
EXPECT EMPLOYER-PAID
SERVICES TO GROW

Many operators have added
pantry service to their
OCS routes based on client
demand to offer premium paid amenities
to their employees. This trend is unlikely
to slow down as long as unemployment
is low and the economy is strong.
"Employer paid services - pantry,
OCS - continue to grow with a strong
contribution of money per employee in
order for employers to sustain culture,
retention and recruitment efforts,"
Rosenberg said.
Jim Carbone, vice president of
strategic development at Tradecraft Outfitters, a division of Canteen, said that
competitive employers are providing
- and paying for - pantry service and
elevated beverage options such as looseleaf teas, craft coffee and draft beverages.
"Draft beverages - cold brew coffee, kombucha and kegerators in offices

Automatic Merchandiser * December 2019

Now, rather than just following intuition, we have empirical
data that supports the different product mixes of these
different accounts."
Maeve McKenna Duska, chief marketing officer at USA Technologies

- are very popular with millennials,
and that is driving one of the most
profitable parts of the convenience
services business, which is pantry programs, or free snacks and beverages."
Carbone said. "Bringing craft coffee
into these offices helps not only attract
talent, but also retain talent."
Carbone said that he's seeing
an increasing number of employers going the extra mile in premium
services by offering in-house baristas
in the workplace.
"Who would have ever thought we'd
see baristas on staff making incredible
quality coffee drinks for employees for
free? I put programs like that in place,
where there are literally baristas on
staff from 7 a.m. to 5 p.m., serving an
espresso or latte or cappuccino, keeping
employees in place instead of going
down the street to Starbucks," Carbone
said. "There's a lot of money in it. Everybody's looking for something better and
they're willing to spend the money."
Steve LaPorte, president, refreshment services group at Continental, said that his company plans to
partner with clients to identify the best
employee benefits programs highlighted by pantry services and OCS.
"It's something we're trying to capitalize on this year," LaPorte said.
NEW REVENUE STREAMS ABOUND

Operators who have
integrated VMS software
are now looking at their
network of connected machines and
wondering how they can drive more
value to their business.

Recher said that in 2020, Five Star
plans to leverage much of the technology it's invested in to maximize its
potential for the company.
"Specifically in vending, we are
deploying 4,000 additional USAT
ePort Interactive card readers with
digital screens to replace traditional
card readers that will be redeployed to
lower-volume, cash-only machines,"
Recher explained, noting that this will
allow the company to enable machines
with cashless payment technology and
leverage digital advertisements and
promotions to drive incremental sales.
Duska said that she believes 2020
will mark a year of interesting incremental growth opportunities for
operators.
"In addition to ads offered by supplier partners, we have operators who
are negotiating their own advertising
deals directly with CPG companies that
they have relationships with, and even
local businesses," Duska explained.
"Getting regional and local advertising
from a non-competing business down
the road? There's ad dollars there and
there's value there. People are already
getting creative - they're already rolling these advertisements out and they're
getting incremental revenue from it.
"And then you have the positive
impact of running ads on the sales of
products in the machine," she continued.
"We're showing that there's definitely
an incremental lift in products that you
advertise. So even if you don't have an
advertising deal, an operator can advertise [a product offered in vending or
micro markets] and see a lift in sales."

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