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purchased other vending companies, invested in a vending management system and expanded heavily into the offce coffee service business. Larry offcially hired his son in 1992, allowing Mark to learn the business from the inside. He worked in several positions, including route driver, vending machine maintenance technician, route supervisor and then operations manager. When Larry retired in 2011, Mark became owner and president of the thriving family business. His years of experience helped him to keep the core of the busi- ness — vending — strong. However, he had also seen enough change and expansion by his father and grandfa- ther to appreciate the value of other revenue areas. Mark kept an open mind about other segments, which led him straight to micro markets. Market growth for markets When Mark frst saw the micro mar- ket concept, he knew it would be a great move. The consumer would consider it new and fresh. Mark could see the potential, so the com- pany installed fve micro markets in the frst year, 2011. The revenue at each location grew substantially. Lathrop Vending is now servicing 40 markets in the Eastern Connecticut area, which comprise 13 percent of Lathrop Vending's annual revenue. "I think micro markets are work- ing as much as they are because it's different," said Mark. He fnds that consumers like the concept and will purchase a greater variety of products at higher prices. In fact, in the last 6 months to a year, he has noticed locations are not only more familiar with micro markets, but actively seeking this type of food- service. While there are many micro mar- ket operators with concerns about theft, for Mark it isn't an issue. He admits there are some locations with theft close to 5 percent. However, in every location Mark had vending that switched to a micro market system, he has had revenues go up 50 per- cent. "We focus on the proftability of the markets," said Mark, "especially because even vending has a one to two loss percentage." Food sales are what drive a lot of Lathrop Vending's micro market rev- enue. People don't buy as much from food vending machines, even the same item, indicated Mark. However, con- Micro markets inspire refreshed breakrooms When a micro market proposal is on the table, locations will invest in up- dating their own breakrooms in order to add to the employee experience. At least, this is what Mark Lathrop, president of Lathrop Vending Inc. in Uncasville, CT, has experienced. He has placed over 40 micro markets in the Eastern Connecticut areas. "What we have found is when we present the micro market concept, most customers want to paint and update the breakroom. They want to add to the experience for their employees," said Lathrop. He has seen locations install new foors as well as bring in new chairs and tables. "They decide – 'hey, if we are going to make this nice thing happen, we're going to make the breakroom nicer too'," he said. 14 Automatic Merchandiser VendingMarketWatch.com May 2015 C O V E R S T O R Y A team effort: Mike Reynolds, VP of operations, far left; Justin Grimm, route supervisor; and Kirk Hanson, equipment manager work together to keep things running smoothly.