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14 Automatic Merchandiser VendingMarketWatch.com April 2016 O C S U P D A T E O C S U P D A T E ustomers, locations and regions are all different and likewise, the type of OCS equipment offered at each location varies. One system that continues to be a driv- ing force in OCS is single-cup. It also drives the highest consumer satisfac- tion with workplace coffee, according to the National Coffee Association (NCA). Consumers enjoy the custom- ization and convenience of single-cup systems and 36 percent of them in the NCA's 2015 Single Cup Format Report say that a single-cup brewer makes an overall better tasting coffee than other brewing methods. From an OCS operator stand- point there are many pros to add- ing a single-cup option. There are no brewing pots of coffee that sit around for hours; there is no waste of coffee and no pots to clean or maintain; there's also a plethora of offerings for any customized taste. Operators can also make a higher "penny proft" per cup over traditional brew. The offering is, how- ever, more expensive than traditional brew and can be a slower brewing method, requiring multiple brew- ers to be placed in high vol- ume offces. In some cases, there is shrinkage where customers take the single- serve capsules home. Location volume, cost of equip- ment, return on investment, machine maintenance and customer prefer- ences are all things OCS operators are taking into consideration when choos- ing which single-cup solution to place. Location volume The location's size and number of consumers working in-offce daily will help OCS operators narrow down which brewers they can place, said Dave Carroll, vice president of Southern Refreshment Services, located in Tucker, GA. Before the company began integrating single-cup in its OCS lineup in the late 1990s and early 2000s, it had only offered traditional OCS. Today single-cup makes up 60 percent of OCS sales for Southern Refreshment Services but only 40 percent of product fow. "We move more cases of frac packs but because the single-cup is a higher price per cup, it makes up more rev- enue," said Carroll. For locations with many employ- ees, operators need to consider the brew time involved with each system. Long brew times may cause lines. Small holding bins on equipment can also be problematic when they fll up too quickly. Bean-to-cup brewers, which are growing in popularity, need at least 80 to 100 people at the account to make them worth the placement. Southern Refreshment Services purchases all bean-to- cup equipment and has the client sign a three- year lease agreement, pay a lease fee each month, in additional to ordering a specifed minimum of product per month. The solu- tion is cheaper in the long run though, said Carroll. "Whole beans come out to be about C Single-Cup Solutions By Adrienne Zimmer, Managing Editor There are many single-cup brewers to choose from. Placement should depend on location size, ROI and customer wants. Single-cup Breakdown 40% product fow 60% of OCS sales for Southern Refreshment Services, Tucker, GA. iStock