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SUCCESS STORY: OPERATION some single-cup options as well such as Keurig and Newco pod brewers. Along with OCS came pantry service, where a location pays for free food and beverages to be provided to employees. J&J; provides the coolers and snack racks, often branded with the location name and logo, as well as delivery of the refreshments. "It's really resulted in big growth for us in the last year," said Jennifer about pantry service. Jennifer's other contribution to J&J; was more philanthropic. One percent of J&J;'s OCS sales go to Planting Justice, an Oakland, Calif.-based non-proft which is dedicated to food justice, economic justice and sustainable local food systems. Also, this year Jennifer is planning to start an apple orchard on the company's property. Dedicated to her maternal grandfather, the fruit from "Papa's Garden" will be donated to local food banks. "Who would have thought my third generation would have brought so much to the company," said Skidmore. He also credits his wife and partner in the business. "Brenda, my wife, is a huge part of our company," said Skidmore. "She runs the offce and keeps Jennifer and me in check." She will ride with route drivers or make deliveries — whatever is needed. Technology will bring new effciencies While Jennifer is the newest family member to work at J&J;, she remains dedicated to the business and services it provides. She is excited about the next 5 to 10 years and how technology will better the operation. "Vending could be a lot more effcient," she said. The company is planning to add prekitting in the next year and a warehouse product picking system. Already, J&J; has added micro markets. "We started with Avanti in 2011," said Skidmore. "But have since changed to Company Kitchen systems." Company Kitchen allowed J&J; an exclusive territory and Skid42 Automatic Merchandiser PROFILE Operation Profle: J&J; Vending Owners: Joel and Brenda Skidmore Location: Union City, Calif. Number of employees: 14 Number of routes: 7 vending, 1 dedicated micro market and OCS route Software provider: MEI Annual revenue: $3.5 million J&J; Vending installs sophisticated looking shelving and coolers in its micro markets. more preferred the high-end look of the shelving and furniture. "It's more like offce equipment," he said. Local fresh food J&J; uses a local foodservice provider to supply fresh food to the markets. The micro market driver delivers food on Mondays and Thursdays. "We sell a lot of salads," said Skidmore. Other popular fresh food products include yogurt parfaits and fresh fruit. On the frozen side, J&J; has had success with frozen meal replacements like Weight Watchers and Lean Cuisines. Micro markets increased J&J; sales 70 percent in the frst location Skidmore tried. Part of that was likely due to the fact a food machine was not previously offered, but the concept has been successful elsewhere as well. J&J; converted one existing account, but has gained two new locations just for the micro market segment. Shrinkage hasn't been a problem in J&J; markets. Skidmore fnds the VendingMarketWatch.com April 2013 Joel Skidmore believes opportunities like micro markets and cashless payment systems are exciting developments for the industry. fat screen television showing people in the market is a deterrent. Locations also police themselves. He'll get notifcations from a customer that a certain employee might have taken an item without paying. Skidmore checks the account and will let the location know the situation, such as if there was a credit on the account. He thinks his shrinkage averages 2 to 5 percent, depending on the market. Investments in vending too Micro markets aren't the only place J&J; has invested in technology, however. The company has added LED lights to vending machines and a retroftted touchscreen door on a machine at a hospital. J&J; is also advancing its cashless payment program — already about 5 percent of the machines except credit and debit cards. "All the new installs have cashless," said Skidmore. "The workforce has changed. People, myself included, never carry cash. Everything is on credit cards." Thirty-fve years is a longtime to be in business. Skidmore keeps the momentum going by embracing, instead of resisting new technologies and business lines including new ideas from the third generation — his daughter. With new revenue streams and giving back to the community, J&J; Vending is poised to be successful well into the future.