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He fnds that healthy vending machines can be a proftable busi- ness. "It's all about the locations, in addition to the products you put into the machine," said Trainor. Loca- tions where there are no other snack options other than the healthy vend- ing machine products seem to work best and consumers certainly develop favorites. "They fnd a product they like and stick to it," observed Trainor who has seen his sales increase to the point where he has outgrown his warehouse space and is struggling to maintain inventory levels of his top selling items. His average vending price is $1.50. His annual revenue for 2014 was over $300,000. Products identifed as better-for- you and a recognizable healthy brand name on the machine are what will drive partnerships between healthy and traditional vending, according to Chris Wyland, president and CEO of Grow Healthy. "I don't think this should be an 'us versus them'," said Wyland. "I think over a period of time there could be synergy." Grow is not a franchise, but an equipment distributor with a healthy brand name and location fnding service. Already the company has at least one operator who has run a traditional route for years, but recently bought into the brand for the equipment and product sourcing. "It's the same equipment, but differ- ent product," said Wyland, "the best quality products." How do micro markets ft into the healthy vending industry? While most healthy vending compa- nies began with vending machines, many are branching out to micro markets, a natural extension accord- ing to the franchisees. Julie Guirguis, owner of Treat Your- self to Health, LLC, a H.U.M.A.N. franchise in Sarasota, FL, only offers micro markets. She saw the H.U.M.A.N. name in Entrepreneur magazine and decided to check out the idea, however, she quickly dis- covered vending machines required frequent restocking and mechanical maintenance skills. "I realized it wasn't for me," said Guirguis. How- ever, when the concept of a micro market was described, Guirguis saw the potential. She has placed three micro markets since June 2014, all with products approved by H.U.M.A.N. She also partners with local food providers for fresh food. "I sell things from my local caterer, like salads, wraps, protein boxes and soups," said Guirguis. Guirguis isn't blind to the impor- tance of the right location for these markets. "Either the company and employees want it or they don't," she said. If people aren't dedicated to eating healthier products, they won't buy them. However, Guirguis also believes there is a lack of education about what healthy products can taste like. "There's a learning curve to healthy vending," she said. A background in fnance helped Guirguis assess the business and un- derstand the need for support from the franchise. "I feel like I'm my own boss, but I'm not alone. I have the support of the staff of H.U.M.A.N." She also knows that any new busi- ness takes a lot of work and atten- tion to detail. "You can't just join a franchise and have someone do it all for you," she said. "Only you can make your business successful." HEALTHY MICRO MARKETS OFFERED TO THE INDUSTRY Can traditional vending and healthy mix? Maybe with a micro market. A two-man team in Los Angeles, CA, saw micro markets as a huge opportunity for both. Ben Thomas and Michael Johnson, friends since college and co-founders of Delicious Nutritious Markets, were at the gym and couldn't fnd a healthy snack. A light bulb went off. They made it their mission to get healthy food into the hands of the people and the partners see the vending industry and micro markets as the perfect way to do that. "We opened our frst micro market in June to prove the concept," said Thomas. "Our business model is to help vending operators grow their busi- ness through healthy micro markets, bridging the gap between what they currently offer and what consumers are begging for — healthy food," said Johnson. Instead of a kiosk, the partners developed a self-checkout payment platform called Payz, which uses the consumer's smartphone device or a wall-mounted iPad to accept payment. "We made our software agnostic," said Thomas, "allow- ing Payz to communicate with any open API inventory management or VMS." On top of that, Delicious Nutritious Markets offers their own Cloud-based inventory management solution, providing real-time access to inventory levels, sales data and analytics. "Healthy food is explod- ing. It's what consumers want and they are willing to pay a premium for it," said Johnson. Fresh Healthy Vending is also looking to partner with traditional operators. Nick Yates, chairman of FHV, indicated that the company will be at the NAMA OneShow in April previewing its proprietary micro market concept which has a modular build and proprietary technology. This will be a way for operators to purchase product from the company, a request Yates says he gets regularly, and be a one-stop shop for installing a plug-and-play micro market option. 26 Automatic Merchandiser VendingMarketWatch.com April 2015 C O V E R S T O R Y