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John LaRoy, co-founder of Coach- Vend, LLC, experienced frst-hand how consumers feel about switch- ing traditional products for healthy ones. He placed some H.U.M.A.N. vending machines in a local high school and got pushback from the students, including some vandalism of the machines. "I then did some tasting events, so the kids could see that healthy doesn't mean it has to taste bad," said LaRoy. It worked. Price is another issue. "The price of a typical vending item will jump from 55 cents to $1.25," he said. The products LaRoy sells are just more expensive and sometimes diffcult to get reliably. The distributor can be out of a hot product for 3 or 4 months at a time, says LaRoy. In an attempt to offer the stu- dent athletes he coaches healthier snack options, LaRoy opened his H.U.M.A.N. franchise in 2014. He has surpassed 30 machines already this year and plans to install two micro markets. His machines average $1,000 a month, so he forecasts his annual revenue to be around $360,000 with- out the micro markets. How does LaRoy see the healthy vending segment in relation to the larger vending industry? Currently a unique, separate and small segment, but not for long. "In the next 4 or 5 years, it won't be a niche anymore," he said. It all hinges on receptive locations Selecting a location with the right clientele is also of paramount impor- tance to Craig Walters, owner of a Fresh Healthy Vending franchise in Pennsylvania. "Not everyone is receptive to healthy food," he said. "And sales volume is critical in this business." Walters aims for high traf- fc locations with physically active individuals like those at martial arts studios, gymnastics and dance stu- dios as well as local schools. "Custom- ers at these locations are more health conscious — aware of fats and preser- vatives — things like that," said Wal- ters. Distribution centers, factories and other traditional locations did not perform well for Walters, despite being staffed 24-7. Fairly new to healthy vending, Walters opened his frst round of machines in 2014. Previously he worked in the fnancial sector and currently consults in that area as he grows his healthy vending business. The franchise concept was a plus for Walters, although he knows he could have bought the equipment for a less '' Once people become familiar with the brands and products, they fnd something that fts their taste palate. '' Craig Walters, Fresh Healthy Vending Franchise Operator, Pennsylvania © 2015 F. Gaviña & Sons, Inc. Don Francisco's son and grandson, Pedro and Michael, inspecting green cofee at the family's facility in Vernon, CA. For over 143 years, the Gaviña family has crafted coffee with the fnest Arabica beans from around the world. Now, the signature Don Francisco's Coffee Family Reserve roasts enjoyed b y c o n s u m e r s f o r d e c a d e s a r e available for offces and break rooms as well. A smarter choice, offering a tradition of quality that encourages offces everywhere to join our family. Come see us at Booth #239 at the NAMA OneShow SM . April 2015 VendingMarketWatch.com Automatic Merchandiser 27 C O V E R S T O R Y