september-october2023 - 12

KLAY
THOMPSON
is assessing the Fresh stores' organizational needs, according
to a company statement. And, the Washington Post reported
that hundreds of workers lost their jobs.
AARON
JUDGE
NEW 'ZOMBIE MARKETS'
At stores around the country, Amazon has put a hold on
Fresh openings. Many of the on-hold locations have signage
placed in front of the store. Bloomberg reported that
Amazon has paused expansion of its line of Amazon Fresh
grocery stores, as it evaluates " how to make the chain stand
out to shoppers, " according to Amazon chief executive officer,
Andy Jassy. Some of the unopened stores are now being
referred to as zombie markets.
AN EXPERT OPINION
What went wrong? How can such incredible technology
fail to resonate with consumers? Technology is a key
component of Amazon's grocery challenges. In an NPR
VISIT US AT WAIAKEA.COM TO SEE HOW WE
LIVE ALOHA
report, Karan Girotra, a professor at Cornell Tech, said
" the Amazon Fresh job cuts underscore Amazon's failure to
lure in shoppers and secure a competitive edge through its
automated shopping experience. " (I am happy to let Karen
do the talking for fear of losing my Prime membership).
" When Amazon entered this business, their assumption
was they could use technology to compensate for their
late entry, for their lack of scale and lack of a large physical
network, " Girotra noted in the NPR article. " The hope
was technology would give them an edge, but it didn't
really happen. "
Apparently, many shoppers haven't bought into
Amazon's futuristic grocery experience. Foot traffic data
analyzed by Bloomberg Intelligence shows customers shop
at nearby competitors far more frequently than they do at
Amazon Fresh locations.
A LESSON FOR OPERATORS
I searched my soul, trying to understand why I hadn't been
back to my local Amazon Fresh store, because I love the
concept. The real problem: There wasn't one product in that
store that was compelling enough to bring me back.
There is an important lesson here for office coffee
service (OCS) operators:
* Quality is important. If you have the best coffee, and
your client absolutely loves it and they cannot
get it anywhere else, the client will put up with a lot.
We have all seen that happen when trying to take over
an OCS account from an operator who is failing on the
service side. It takes time.
* Prices are excellent at Amazon Fresh, but price only
goes so far. It can get an operator in the door, but when
it is accompanied by mediocre quality, that will only
12 Automatic Merchandiser * September/October 2023
2310AUTMWaiakea-REV.indd 1
8/10/23 3:08 PM
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september-october2023

Table of Contents for the Digital Edition of september-october2023

Editor's Note: A continued comeback for office coffee service
Industry News
OCS Update: Technology is not enough without customer satisfaction
The OCS industry continues to make a comeback
40 Under 40 Awards
Sustainability: A critical issue and key selling point for OCS operators
Work Smarter, Not Harder
Social Hubs
september-october2023 - CoverTip1
september-october2023 - CoverTip2
september-october2023 - 1
september-october2023 - 2
september-october2023 - 3
september-october2023 - 4
september-october2023 - 5
september-october2023 - Editor's Note: A continued comeback for office coffee service
september-october2023 - 7
september-october2023 - Industry News
september-october2023 - 9
september-october2023 - OCS Update: Technology is not enough without customer satisfaction
september-october2023 - 11
september-october2023 - 12
september-october2023 - 13
september-october2023 - 14
september-october2023 - 15
september-october2023 - The OCS industry continues to make a comeback
september-october2023 - 17
september-october2023 - 18
september-october2023 - 19
september-october2023 - 20
september-october2023 - 21
september-october2023 - 40 Under 40 Awards
september-october2023 - 23
september-october2023 - 24
september-october2023 - 25
september-october2023 - 26
september-october2023 - 27
september-october2023 - 28
september-october2023 - 29
september-october2023 - 30
september-october2023 - 31
september-october2023 - 32
september-october2023 - 33
september-october2023 - Sustainability: A critical issue and key selling point for OCS operators
september-october2023 - 35
september-october2023 - 36
september-october2023 - 37
september-october2023 - 38
september-october2023 - 39
september-october2023 - Work Smarter, Not Harder
september-october2023 - 41
september-october2023 - 42
september-october2023 - 43
september-october2023 - 44
september-october2023 - 45
september-october2023 - 46
september-october2023 - 47
september-october2023 - 48
september-october2023 - 49
september-october2023 - Social Hubs
september-october2023 - 51
september-october2023 - 52
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https://www.nxtbook.com/endeavor/automaticmerchandiser/september2020
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