Automatic Merchandiser

OCT 2014

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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Creating the breakroom experience As the largest Canteen franchise, Five Star began using Canteen's Avenue C micro market concept in most loca- tions after 2012 and is currently transitioning all non-Avenue C mar- kets to that concept. "Five Star made a strategic decision to transition to the Avenue C concept. We believed that the Avenue C brand and 365 Retail Market's technology platform was the best in class solution for our business," said McCall. The concept includes all equipment and cabinetry and requires no investment on behalf of the custom- ers. The company does require, how- ever, that all locations be furnished with the appropriate electrical source, Internet connection and water line, when needed. "We do fnd that many companies decide to remodel their break rooms prior to the installation of a new market," said McCall. New brands of fresh food Micro markets have additionally allowed Five Star to offer the foods that customers demand, especially the fresh food. "We have seen a signifcant increase in sales as we have converted companies from traditional vending to micro markets," said McCall. "We believe that the concept increases the participation rate within companies. People prefer to touch and feel the product before purchasing." The company realized early on that no two locations are the same, meaning that no two locations want the same product. Therefore, each micro market is now planogrammed specifcally with the location's food and beverage desires, determined by close monitoring of data collected. The company will begin each new micro market with products from different fresh food lines and watch the purchasing data to determine which lines sell the best based upon location type. Five Star's commissary, acquired in 2013, produces up to 6 million pieces of food annually. The commis- sary supplies Five Star's vending and micro markets with fresh food and also sells to other Canteen franchises. Micro markets grow, so does OCS Micro markets are the driving segment when it comes to growth percentage. In the last three years, however, the company has also witnessed a signifcant percentage growth in coffee service. The com- pany has not only invested in a sales force dedicated to coffee service, but it has also reached into private label. Five Star has its own ground coffee, liquid coffee, liquid tea and pod cof - fee lines, including its house blends Masterperk, Columbian, Classic and Columbian Decaf. It also has recently developed two dark roast line extensions, Donut Blend and City Roast. The company that does it all Some companies would not be able to handle four different segments, how- ever, Five Star Food Service thrives off of the combination of these businesses. The company began and is rooted in vending, however, investments in micro markets and offce coffee service have grown the company to be a powerhouse in the South. By focusing on consumer eat- ing habits, trends and expectations, Five Star has been able to grow to become one of the largest industry operators in the U.S., with no signs of slowing. Jean Bouchard, CFO, left, Alan Recher, president and CEO and Greg McCall, SVP of sales and marketing, are part of an executive team that oversees 800 employees and emphasizes consistent business growth. Corporate dining expands offerings As a company who does it all, corporate dining and catering are icing on the cake. Five Star works to create a destination experience for its customers with its dining solutions. "Our catering division has continued to grow by providing our customers with a high quality offering. Five Star has the capability to handle corporate catering events up to 5,000 employees," said McCall. The company has a team of culinary chefs who create a dining experience for the client, including menus and programs. One of Five Star's chefs, Sterling Wright, was featured on the 2014 television season of Hell's Kitchen. 40 Automatic Merchandiser VendingMarketWatch.com October 2014 O P E R A T I O N P R O F I L E

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