Automatic Merchandiser

APR 2016

Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.

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April 2016 VendingMarketWatch.com Automatic Merchandiser 17 O C S U P D A T E • Machine costs less than $1,500 • Returning ROI* of roughly under 4 months at 50 cups/day • Machine costs between $1,500 -$3,000 • Returning ROI of 4 months * at 100 cups/day • (7-10 months for 50 cups) • Machine costs over $3,000 • Returning ROI less than 10 months for 100 cups/day * Brand recognition Cost control – zero theft of product by employees Increase costs to keep hoppers flled, any bulk solubles flled, regular cleaning and more maintenance Lease machine/ have contract minimums Bean to cup hopper style machine Flat pack style National brand with lots of variety OCS or foodservice only brewer *ROI based on .25 proft per cartridge/cup (actual prices vary) and 20 drinks sold per month. Information such as profts per cup and brewer types/prices based on presentation by Dave Carroll, vice president of Southern Refreshment Services, and presented at the 2015 CTW. at multiple considerations $ Cartridge style DESIRED FORMAT Pod brewer Coffee Blend Medium have an option for all different types of locations. Maintenance costs also need to be taken into consideration when choos- ing a "Bean to Cup" solution. South- ern Refreshment Services was adding so many bean-to-cup brewers that it had to hire a maintenance technician full-time simply to travel around and service/clean the machines. This was an unexpected cost, said Carroll, but with growing from 20 to 150 bean- to-cup machines, it was a necessity. It is not feasible to exchange a bean- to-cup machine every time it needs regular maintenance or service said Carroll; unlike K-cup or POD style machines, which are cheaper and easier oftentimes to replace. In total, Southern Refreshment Services has 1,500 single-cup machines and 150 bean-to-cup brewers and can't imag- ine a future in OCS without single- cup as a solution. Icons by Freepik

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