Automatic Merchandiser

AUG 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.

Issue link: http://automaticmerchandiser.epubxp.com/i/148356

Contents of this Issue

Navigation

Page 25 of 31

OPERATION PROFILE the idea. He was lured away by better pay and tried other delivery jobs, but Fox decided he preferred vending. He started his own business, A-OK Vending, in 1962 with one cigarette machine on the Southside of Chicago. His main point of difference was he never operated on credit. "In building this business, I didn't borrow any money," explained Fox. "If I didn't have the money, I didn't buy it." Fox even owns the building in Bridgeview and rents it back to the operation. Fox Vending also adopted money saving strategies early on that would be considered green now. Fox added skylights to the warehouse roof in 1993 and now no electric lights are required, even in winter. Around the same time, the company added a cardboard compactor that condenses all the boxes into pallets that Fox Vending sells. Assuming a new name In 1975, the Fox Vending name became available and James Fox decided to personalize his business. He also added the image of a fox to the logo for the purpose of marketing. Adding his phone number and name to the top of downtown delivery vehicles was also part of his marketing strategy. The company grew organically and through acquisitions, some of which brought offce coffee service opportunities. Fox Vending got into Keurig single cup brewers when it purchased All Seasons in January 2004. While the management likes the quality and fexibility of k-cups, they are also investigating other cartridge-style single cup coffee in order to remain competitively priced. In 2005, it purchased Park Manor Coffee, which added two dedicated coffee service routes. Fox Vending doesn't roast its own coffee, but instead partners with local roasters. Technology was the next major change for Fox Vending. Fox added handhelds and vending management 26 Automatic Merchandiser software in 2009 to improve route effciencies and cash accountability. Going second generation In 2000, Fox wanted to step back a bit from the everyday challenges of being an operator, but wanted someone at the top he could trust. His daughter, Jennifer Fox, had just graduated with a graphic design degree and was trying to get a job. He asked her to try out the vending business. Having grown up around the company, calling the long-time service technician 'Uncle Charlie' and riding on veteran and award winning route driver Jim Milton's product cart, Jennifer knew the industry, but had plans of her own. Still, she couldn't say no to her father. "I never intended to stay," said Jennifer. It's now 13 years later, and she's the president of the operation. Jennifer likes to keep Fox Vending unique and interesting, so she recently launched the company's frst micro market after investigating them with the help of a friendly competitor. She chose the Breakroom Provisions market and it has exceeded her expectations. "One great beneft of having a micro market is the ability to pass on the sales tax to the end user," said Jennifer. On some products, the sales tax can be 9.75 percent in the Chicago area and consumers don't realize it's included in the vend price. Adding it separately in micro markets has been a win for Fox Vending. Jennifer also likes that micro markets have a greater fexibility in what can be sold, since there's no coil to ft into. "While vending has become ho hum, micro markets allow for so much more creativity," said Jennifer. Her latest market product consideration is trendy greeting cards. "Sometimes you need to pick up a card for an occasion," she said. Operation profle: Fox Vending Inc. Founded: 1962 Headquarters: Bridgeview, Ill. Number of employees: 37 Number of routes: 15, 2 OCS, 1 part-time micro market Software supplier: MEI Easitrax Micro market supplier: Breakroom Provisions Annual sales: Not revealed VendingMarketWatch.com August 2013 Active in the industry James Fox was very active in vending associations. He was a founding member of the Better Vendors Association (BVA) and served as president from 1981 to 1984. He has also been part of the Illinois Automatic Merchandising Council (IAMC). Jennifer Fox is following the family tradition and is currently serving as treasurer of IAMC.

Articles in this issue

Links on this page

Archives of this issue

view archives of Automatic Merchandiser - AUG 2013