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.
Issue link: http://automaticmerchandiser.epubxp.com/i/137618
CHART 3: MACHINES BY LOCATION, 4-YEAR REVIEW ● Manufacturing ●Offices ●Hotels/motels ●Restaurants, ●Retail sites ●Hospitals, nursing ●Elementary, middle, high schools ●Military bases ●Correctional facilities ●Other homes ●Universities, colleges bars, clubs 0.7% 2.2% 5% 5.8% 9% 7.3% 8.3% 33.2% 0.9% 0.4% 7% 6.8% 5.9% 8.8% 9.1% 22.4% 1.1% 1% 8.55% 26.8% 28.5% 1.3% 4.7% 1.1% 5% 2009 13.7% 5.3% 8.8% 2.9% 2.5% 11.5% 31.3% 8.2% 6.6% 22.2% 2010 20.1% 8.8% 8.6% 2.5% 1.4%4.1% 22.5% 5.2% 2.7% 2012 2011 as other vending locations. Operators struggled with legislation that restricted the potential products sold and/or that placed taxes on traditional vending fare. They also reported concern about future legislation. Both the Food and Drug Administration's fnal rule regarding calorie disclosure required by Obamacare and the U.S. Department of Agriculture proposed rule regarding the items allowed in school vending machines could severely constrict operator revenue and profts. CHART 4A: STAFFING CHANGES, 4-YEAR REVIEW CHART 4B: CHART 4C: AREAS WHERE STAFF WAS AREAS WHERE STAFF WAS ADDED, 4-YEAR REVIEW REDUCED, 4-YEAR REVIEW CHART 5: ACQUIRED OR DIVESTED BUSINESS, 3-YEAR REVIEW ●2009 ●2010 ●2011 ●2012 ●2009 ●2010 ●2011 ●2012 ●2010 ●2011 ●2012 Added Reduced No change ●2009 ●2010 ●2011 ●2012 14.3 11.3% 13.3% 22% 15.4% 25% 33.3% Sales Sales 50% 40.8% 34.1% 21.8% 16.2% 30.8% 38.9% Delivery Both acquired and divested 45% 50% Delivery 61% 69.6% 28.6% 15% 10% 23.7% 26.9% 11.1% 30.4% Repair 0% Warehouse 26.9% 25% Warehouse 41.2% Divested 2010 18.24% 15.2 11.32 10.64 8.95 6.76 5.74 4.9 4.56 4.39 3.72 3.04 1.69 0.84 2011 18.30% 14.18 10.31 11.86 7.99 6.96 6.96 4.12 2.84 4.64 3.35 3.35 3.09 2.06 72.7% 8.6% 4.7% 6.9% 8.6% 2012* 83.10% 62.3 42.1 46.2 47.3 33.1 19.7 22.4 12.8 22.4 7.7 10.7 4.9 14.5 * Includes multiple mentions June 2013 14.1% 16.9% CHART 6: STRATEGIES FOR HANDLING HIGHER COSTS, 3-YEAR REVIEW PRODUCT Raised prices Absorbed extra cost Reduced service frequency Rearranged routes Eliminated unproftable account Lowered commissions Postponed parts or equipment buys Rearranged job responsibilities Reduced company travel Reduced equipment in accounts Adjusted compensation/benefts Reduced product variety Postponed equipment repairs Switched to using more cost-effcient vehicles 75.3% Acquired 14.3% 11.3% 16.7% 23.7% 50% 46.5% 53.5% Repair 56.3% 55.9% 78.9% Neither acquired nor divested 28.6% N/A 12.7% 12.4% 21.8% 27.9% 3.9% 5.9% 3.6% Compared to retail sales growth, vending revenue continued to lag in 2012. According to Technomic, a food research frm, restaurants and bars showed revenue growth of 4.5 percent for 2012. Medium operations increase Besides 2012 being a growth year in terms of revenue, many smaller operators were also able to grow. There was an increase in medium operations, defned as those with $1 million to $4.9 million in annual sales, as seen in chart 2. Locations hiring more employees and consumer confdence as well as embracing a new busi- VendingMarketWatch.com Automatic Merchandiser 25