Automatic Merchandiser

JUN 2013

Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.

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OCS UPDATE SPONSORED BY How to improve coffee sales Based on consumer research, customers crave coffee and nearly 50 percent of them don't have it at work. Improved coffee offerings, as well as water service can drive sales. O ffce Coffee Service (OCS) has that they would consider switchbeen a strong and growing seg- ing OCS providers. That number ment in the vending, micro dropped further, to 21 percent, for market and OCS industry for account decision makers. 10 years. Since consumers started recognizing quality and were willing to Coffee At Work pay for better tasting coffee, it's been When coffee service was cut as a a thriving opportunity for operators. result of the recession, 25 percent The annual Automatic Merchandiser of consumers said it was what they State of the Coffee Service missed the most. CurIndustry reported that rently, less than half the industry reached of consumers have an all time revenue access to coffee at high of 4.12 billion work. Single cup dollars in 2011. But systems have how do consumers increased signifview coffee at work of consumers report cantly, but 50 perand what can operaaccess to gourmet cent of consumers tors do to drive even or specialty coffee report having more sales? pourover brewers at NAMA, the national their locations, with 20 trade association for vending percent reporting airpots. and refreshment services, commis- Only 1 in 5 consumers had access to sioned a survey in 2012 to investi- gourmet or specialty coffee. gate consumer wants and perceptions One of the clearest messages from when it comes to liquid refreshments the survey was that coffee service in the workplace. operators should add water service. According to the research, coffee Locations like Their OCS and tea were mostly consumed in The NAMA research shows that the morning, with light use in the more than 90 percent of consumers late afternoon. Water was consumed understand their offce coffee is from all day, and among those who did not a provider and most would not want have coffee service, 60 percent named to change. Only 32 percent reported fltered water as their top request. 20% June 2013 60% of consumers aged 18 to 34 would signifcantly increase consumption if they had specialty options Specialty drinks drive sales Specialty drinks also showed the potential to drive sales. More than 60 percent of consumers aged 18 to 34 said they would signifcantly increase consumption if they had specialty options like espressos and lattes. The entire coffee service report can be purchased directly from NAMA's Website at www.vending.org. OCS operators have many opportunities for growth. Besides exploring ways to bring coffee to new locations, operators should be upselling services. Customers at current OCS locations are clearly open to specialty drinks and water service. Investigating how to drive revenue at existing locations is more profitable, especially since of consumers locations understand their are likely to coffee is from a remain loyal provider. to existing service providers. VendingMarketWatch.com 90% Automatic Merchandiser 13

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