bean-to-cup systems which are slowly
gaining market share (chart 7). Bean-
to-cup systems allow whole-bean cof-
fee to be stored in a hopper attached
to the machine. When a user wants
a cup of coffee, the beans are ground
and the coffee is prepared instantly
to the user's specifcations. Many of
these units have a touchscreen that
can enhance the user experience. And
because the bean-to-cup system uses
whole beans, the cost per cup is lower
than prepackaged single-cup options.
Pod brewers are also showing
positive growth. They offer the
convenience of prepackaged car-
tridges and since they are made
with flter-like paper instead of
plastic, are considered more envi-
ronmentally friendly than many
cartridge-style single-cup options.
Pods are often less expensive than
cartridges as well.
Locations vary
While many OCS customers are
asking for better quality coffee or
single-cup options, there is still the
nagging issue of the price a location
is willing to pay for coffee service.
S P E C I A L A N N U A L R E P O R T : S T A T E O F T H E C O F F E E S E R V I C E I N D U S T R Y
30 Automatic Merchandiser VendingMarketWatch.com September 2014
16%
54%
1.9%
3.8%
3.3%
5.2%
7.6%
1.4%
4.8%
1.5%
3.5%
6.2%
6%
3%
5%
1%
8%
7%
2.1%
5.2%
5.4%
55.4%
18.5%
18.7%
55.8%
15.1%
48.8%
2009/2010 2010/2011 2011/2012 2012/2013
10.1%
6.9%
4.5%
6.3%
7.2%
2.7%
5.4%
3.5%
17.3%
45%
2013/2014
10.5%
7.3%
8.3%
CHART 8: PERCENT OF NET SALES BY LOCATION TYPE, 5-YEAR REVIEW
● OFFICES ● INDUSTRIAL PLANTS ● RESTAURANTS, DELIS, BAKERIES ● CONVENIENCE STORES
● GOVERNMENT/MILITARY ● SCHOOLS/COLLEGES ● RETAIL OUTLETS ● OTHER (HEALTH CARE/HOTELS)
11.8%
7.3%
2012/2013 2013/2014
2.7%
16.4%
17.3%
21.8%
10.9%
11.8%
2%
20%
22%
20%
13%
13%
4%
6%
CHART 9: ACCOUNT POPULATIONS BY SIZE
● LESS THAN 10
● 11 TO 14
● 15 TO 19
● 20 TO 29
● 30 TO 49
● 50 TO 74
● 75 TO 99
● 100 OR MORE
68.3%
30.5%
61.7% 54.3%
38.3% 45.7%
67.4%
32.6%
2009/2010 2010/2011 2011/2012 2013/2014
61.3%
38.7%
2012/2013
$3.50
$3.80
$4.15
$3.94 $3.91
0
1
2
3
4
5
2013/14 2012/13 2011/12 2010/11 2009/10
FUEL CHARGE ACTIVITY
CHART 10A: COMPANY BILLED CUSTOMERS FOR FUEL, 5-YEAR REVIEW
CHART 10B: AVERAGE AMOUNT
CHARGED FOR FUEL PER DELIVERY,
5-YEAR REVIEW
● YES ● NO