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Schlossberg sees more food options available to consumers than ever before. It's not just the quick ser- vice restaurants, but food selections inside drug stores, convenience stores and now even online retailers deliv- ering food to offces in certain cit- ies (i.e. Amazon's Prime Now). "We have to steal someone else's lunch business," stated Schlossberg. "That is ultimately what next year is about." Schlossberg sees industry pioneers working on unique food offerings and believes this is the answer to compete for the consumer's food dollar. "We have to fnd resources to make unique offerings so we become the best in our town." That means not copying the same standard sandwiches and foods as the area c-stores and fast food restaurants. It's deploying new foods every two weeks or less, and including items that are only avail- able for a limited time. It's about using data to see what is selling and what is not. And fnally, it means getting consumers used to prices that allow for proft and opting for the micro market option more often. Schlossberg also recommends leveraging the all-day breakfast trend as well as converting your vending food locations to micro markets, when possible. "You get more money per transaction and there is more sales data available with a micro market," he added. Meeting tech expectations More mobile engagement is certainly another area that many industry insiders are betting on for 2016, such as Paresh Patel, founder and CEO of PayRange. "The iPhone was intro- duced in 2007. This means those that were entering high school that year will now be graduating from college next year," he said. "This is the frst truly mobile generation that will be entering the workforce." Patel argues that not only has this coming genera- tion grown up with the smartphone, but they don't know any other way to bank and buy items thanks to mobile banking and large Inter- net retailers. "As this generation enters the workforce, they will put pressure on operators because they aren't the generation used to dollars bills," said Patel. Anant Agrawal, president and CEO of Cantaloupe Systems also thinks the generational shift will push vending operators more quickly into advancing cashless and mobile technology. "Older generations grew up on Coke and Pepsi and will con- tinue to do so, but as we age, not as frequently," said Agrawal. "On the other end of the spectrum is the huge wave of Millennials who grew up with $5 double shot lattes from Starbucks and go to vending machines for $2 bottled water and $3 energy drinks." While the previ- ous generation fed in quarters, the Millennials will expect to 'fash' their smartphone and 'gift' a friend or use a mobile wallet. Agrawal also believes this group will drive mer- chandising. "It will be consumers' cell phones and companies that can leverage simple user experiences through smartphones who will win the consumer." A positive aspect of the changing way consumers engage with vending and micro markets is the valuable data it can provide to manufacturers. That has spurred more promotional programs being offered by the major consumer packaged goods (CPG) companies, according to Agrawal. Vending operators can leverage these specials to improve their bot- tom lines. "I think we are getting closer and closer to a retail-esque environment with more tools being released to vending operators each week to help them connect with their customers," said Joe Hessling, CEO of 365 Retail Markets. The technologies are in all aspects of the industry, not just micro markets. Hessling mentions examples like PayRange, Sprout, USConnect and Canteen's vending app. "All of these are bringing the consumer closer to an experience they are used to in everyday life." Chuck Reed, senior director – sales & marketing, Vending Ameri- cas with CPI, believes in the power of technology to better address the changing consumer. "Providing excellent customer service becomes a much easier effort when an opera- tor has real-time information and can Have micro markets plateaued? Some operators are wondering how long micro markets can continue to grow at their current rate. "The vast evolution of the micro market must reach a plateau at some point," said Carl Moser, sales manager of Cardinal Canteen Food Service. "I think this time is getting very close." Gregory McCall, senior vice president of sales and marketing for Five Star Food Service, Chattanooga, TN, on the other hand, believes micro markets have not yet reached their potential. "Even with over 450 markets, Five Star is still seeing annual growth rates in excess of 45 percent," he has said. McCall sees a saturation point far in the future, and even then there will be opportunities to morph the idea for hotels, upscale apartments and other venues. 20 Automatic Merchandiser VendingMarketWatch.com December 2015 F U T U R E O U T L O O K